Santander’s net profit increased 25% driven by its unit in the United Kingdom

Santander Bank, the first Spanish bank, announced a net profit of 2,170 million euros (about 2,500 million dollars) in the third quarter, an increase of 24% compared to the same period of 2020, thanks especially to its good results in the United States and the United Kingdom.

This net result is slightly higher than the forecasts of the analysts questioned by the financial information group Factset, who were betting on average for a profit of 2,000 million euros, identical to that obtained in the second quarter of the year.

In the first nine months of this year, Santander obtained profits of 5,849 million euros (6,780 million dollars), against a loss of about more than 10,000 million dollars in the same period of 2020, linked to the consequences of the Covid-19 pandemic.

Net interest income, a key variable equivalent to turnover, reached 24,640 million euros (about 28,560 million dollars) in the period, compared to 27,784 million dollars in 2020.

“Once again, all regions and all businesses show good revenue growth,” said the president of Santander on Wednesday, Ana Botín, in a statement citing in particular the good results in the United States “and in the United Kingdom.

This dynamic has allowed the Spanish bank win “more than a million new customers in the last quarter”, while “loans and deposits grew 4% and 6% year-on-year, respectively,” added Botín.

The group’s results were especially good in Europe and North America, where the current profit of the Santander it doubled in the first nine months of the year compared to the same period in 2020.

In the UK, where the Santander has a strong presence, the ordinary profit reached 1,140 million euros (about 1,320 million dollars) in the first nine months of the year, “five times” the figure for 2020.

In the same period in South America, ordinary profits reached 2.47 billion euros (about 2.86 billion dollars, + 31%).

We are on the right track to significantly exceed our profitability targets for 2021, “estimated Botín, adding that the bank should benefit from the” improved macroeconomic forecasts “in the coming months.

Despite these good results, the action of the Santander was down in the Madrid Stock Exchange (-3.42% to 3.24 euros (about 3.76 dollars), in a market in decline of 0.71 percent.

The Santander Bank posted a net loss of 8.7 billion euros in 2020, the first in its history, after having to downgrade the value of several of its subsidiaries, especially in the United Kingdom, due to the pandemic.