Santander’s profit grows 24%, including Popular

  • ECO News
  • 28 July 2017

The Spanish bank's profits increased to 3.616 million euros in the first semester, a 24% growth which already includes the purchase of Banco Popular on June 7, 2017.

Santander’s profits increased to 3.616 million euros in the first semester, which equals a 24% growth in comparison to the previous semester. Before taxes, the group’s results ascend to 6,584, a 16% growth, according to a press release sent to CMVM. Banco Popular, which was purchased by its Spanish neighbor on July 7, should profit around 13-14% in 2019, states the banking institution. Over the past semester, it made a 11 million euros contribution to the bank’s results which, in the second quarter of 2017, got 37% more income than the homologous period: 1.749 million euros.

“We were able to continue complying with our commitments, with a profitable growth and with an increase in the quality of the entire group’s results. The deal showed positive trends in all markets, with a particularly strong growth in Latin American, important improvements in Spain and a solid evolution in the United Kingdom”, states Ana Botín, Banco Santander’s CEO, in the press release.

The diversification between new and matured markets continues to be a strong justification for the group’s results: Brazil made a 26% contribution to profits, while the United Kingdom made a 17% contribution and a 13% contribution from Spain.

With these results, Santander maintains its position as one of the most profitable and efficient banks in the world: the profit on the bank’s tangible capital increased 144 basis points in one year (excluding Popular), which reflects a 11.7% increase. In the Portuguese market, profit increased 16% to 223 million euros, mostly because of the commercial area which increased the number of clients of the bank by 24%.