The bank saw net income fall by almost a third in the first nine months of the year, with net interest income continuing to decline.
Santander Totta reported a net profit of €172.2 million, a year-on-year decrease of 32%, in the first nine months of 2021, a period marked by a continued reduction in financial margins. Recurring commercial revenues continued to be affected by an “adverse context, as a result of the uncertain economic environment arising from the pandemic,” the bank announced this Wednesday.
In the same period, total customer loans stood at €43.5 billion, an increase of 2.2% compared to last year, highlighting growth (5.9%) in mortgage loans. The market share of new loans to companies and housing (accumulated figures to August) stood at 22.1% and 21.3%, respectively.
Within the scope of credit facilities with State guarantees, over 15,000 customers were supported, for a total amount of €1.8 billion. Customer resources totalled €46.2 billion, a rise of 6.7%, “determined by the increase of 4.5% in deposits and 18.3% in off-balance sheet resources,” Santander said.
The number of digital customers increased by 8.6%. “Our digital customers number almost a million and have contributed every day so that sales in digital channels, done in complete security, exceed 60% of the total,” said Pedro Castro e Almeida, executive chairman of Santander Portugal, quoted in a statement.
The efficiency ratio was 41.1% (3.4 percentage points below the value achieved in September 2020), while the CET1 ratio was 23.9%, up 3.5 percentage points in September last year.
Pedro Castro e Almeida says “despite the challenging year” that 2021 is turning out to be, the evolution of these bank indicators brings optimism about the future and “reflects the confidence” of customers. “2022 is on the doorstep. Santander is ready for a new year – and a new cycle. The bank today is stronger, better structured and equipped with the necessary means to continue to be the partner of Portuguese households and companies.”