The bank's profits grew almost 124% in the first nine months compared to last year.
Santander Totta saw net profit soar 123.7% to €385.1 million in the first nine months of 2022.
The bank says the rise is related to the “extraordinary charge” of €164.5 million recorded in the first quarter of last year related to the employee exit plan. A non-recurring cost that does not occur this year.
In a statement, CEO Pedro Castro e Almeida says that “credit concession has remained stable” throughout this year and that resources “recorded slight growth, driven by deposits”.
The bank’s net interest income totalled €547.9 million in the first nine months, a drop of 1.9% year-on-year. It reflects, “on the one hand, the competitive context, which continued to put a downward pressure on credit spreads and, on the other, the change in the relative composition of the loan portfolio, as a result of the greater dynamism of mortgage loans”.
Net operating income stood at €933.6 million, a drop of 9%, “this evolution was largely explained by the income’s evolution from financial operations, which fell by 80% year-on-year, when it had reached a very high level, as a result of the securities portfolio management,” the statement said.
Customer funds grew 1.2%, to €46.7 billion, “with the contribution of deposits (+3.6% compared to September 2021) being partially offset by the dynamics of off-balance sheet funds, which retracted 10.3% in the same period, because of the context in international markets.”
Meanwhile, total loans and advances to customers retreated 0.1% to 43.5 billion. The bank also reports that 61% of the customer base is digital.
In the first nine months of 2022, Santander Totta also incurred operating costs of 364.5 million. This was a 13.6% reduction compared to 2021, an improvement related to the 16.1% reduction in staff costs.