Banco Santander "confident" after strong third-quarter

Banco Santander SA reported growth in third-quarter earnings on Tuesday and expressed confidence in "maintaining this strong momentum" for the remainder of 2024.

Banco Santander "confident" after strong third-quarter

Total revenue for Q3 rose 1.8% year-over-year to €15.14 billion, up from €14.86 billion. However, it declined 3.4% from the previous quarter's €15.67 billion. Net interest income saw a slight annual increase of 0.1% to €11.23 billion, though it dipped 2.2% quarter-on-quarter. Consolidated profit climbed 13% to €3.59 billion, up from €3.18 billion a year ago, and rose 3.3% compared to Q2’s €3.48 billion. Executive Chair Ana Botín highlighted, “The group continues to deliver strong, profitable growth, with earnings per share up 19%. We’re seeing growth in both net interest income and net fee income, with robust credit quality and positive operational leverage from our transformation efforts. This success underscores our diversified business model and progress on strategic execution." Botín noted that Santander’s core Retail & Consumer businesses, accounting for over 70% of operations, achieved an 8% revenue increase and a 1% decrease in costs in constant euros. "In a volatile geopolitical environment, we are confident we will sustain this momentum through year-end, meeting all our targets and extending into 2025."

Positive outlook

The bank anticipates high-single-digit revenue growth at constant currency rates for 2024. Meanwhile, Santander’s UK unit postponed its quarterly results on Monday due to a UK Court of Appeal ruling on a motor finance case, which favored consumer appeals against FirstRand Bank and Close Brothers Group PLC.