Of Special Interest
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- Newslink Trends-The Global Strategic Perspective
- Juniper Research says digital wallet users to exceed 4.4 billion by 2025, as mobile drives digital payments’ revolution
- Criminals exploit COVID-19 pandemic with rise in scams targeting victims online
- Equifax says Open Banking proving pivotal to pandemic lending
- Consumer confidence in banks, credit card providers and investments remain stable as demand supercharges digital finance says Toluna research
- Mintos says Europeans are starting to embrace investing
- US banks see IT modernisation as a way to improve customer experience
- Risk mitigation in global trade depends on digitisation-Andrew Raymond, CEO, Bolero International comments
- Juniper Research new study says the volume of B2B payments facilitated by non-banks will exceed 53 billion in 2022, from a COVID-related low of 38 billion in 2020
- CMA issues fifth publication over 3 years of the service quality league table of personal and business current account providers
- Barclays says scammers take advantage of COVID-19, cashing in on nations’ uncertainty
- S&P Global report says financial market infrastructure sector's earnings likely to cool off In second half
- Global banking market capitalisation slumps by over 30% amid pandemic says Buyshares research
- Digital wallet spend in Europe & North America to increase by 40% in 2019, finds study
- Juniper forecasts mobile money transactions will exceed 200 billion by 2024
- Banks can save the world from climate change, says former UN climate chief
- Research by NatWest reveals gender divide over attitudes to saving
- Europe’s big bank problem: too much capital is trapped in the US, says Scope
- Later-Life lending market set to almost double in the next 10 years, finds report
- Barclays/Cebr report challenges nation to think differently about wealth
- Fifth of UK investors looking to debt investment, new research reveals
- Regtech will play a more important role in PSD2, says Mitek
- Banks turn to Fintech partnerships to improve customer experience, finds Fraedom
- New industry code to tackle fraud must deliver, says Which?
- New TTF report highlights loss of trust in financial services
- Arxan highlights financial app vulnerability epidemic
- SAS asks whether banks really need to choose between operations and innovation
- Which? raises alarm as almost 1,700 free ATMs become fee-charging
- Financial wellness affects half of peoples’ mental or physical health, finds report
- Study finds traditional financial institutions embrace Fintech disruption
- Grass is greener for environmentally friendly businesses, finds Barclays
- Prospective homeowners would consider a 40-year mortgage to escape renting, finds Santander
- Millennials’ needs are changing the face of banking industry, says new report
- FS is putting consumer data at risk by failing to protect mobile apps, says Arxan
- A lack of belief in their ability holds 28% women back in work, says Cambridge & Counties
- ‘Which?’ reveals Scotland has lost over a third of its bank branches in eight years
- Next downturn unlikely to be as bad as 2008, according to S&P
- FCA reveals findings from first cryptoassets consumer research
- US consumers favour single mobile app for banking and payments
- Banks suffering major IT shutdowns every day, ‘Which?’ reveals
- The US will be a key offshore centre in 2019, says GlobalData
- Debit industry changes markedly in 10 years of the Debit Issuer Study
- UK's ‘Big Five’ face ‘too big to compete’ as small challengers secure stellar returns
- Banks as vulnerable now as before crash, says new study
- Leverage ratio a constant conundrum for European and US banks, says SNL
3rd February 2012
Multiple factors dent Santander profits
Santander reported net attributable of €47m (£39m $62m ¥4.7bn Y391m) for the quarter and €5,351m (£4,469m $7,050bn ¥538.3m Y44,478m) for the full year DOWN 98% and 35% respectively. In common with other Spanish banks Santander made a special writedown of real estate and loans linked to the sector following government pressure in Q4. This is shown as an extraordinary item in the accounts. The attributable profit before this writedown was €1,717m for the quarter €5,351m for the full year DOWN -18% and -14% on the respective periods of 2010.
In the table below operating profit can be seen a little lower only for the quarter and ahead for the full year. Small loan impairment increases were countered by reduced impairment on other assets. Other income losses increased and were the reason for the lower profit at the pre-tax level. The bank did not comment on the construction of the other income losses.
Regionally the most concerning item must be the fall in profits from Brazil & Chile. Whilst largely countered by increased Mexican profits Latin America was down in profitability as a region - and this regions has been the one that has driven Santander growth more than any other factor in recent years. The need to repay UK customers mis-sold Payment Protection Insurance was the main reason for a 42% fall in UK profits equal to €820m. Banesto and Portugese operations were the main reason for a 15% fall in profit from the rest of Europe (excludes Santander brands in Spain and the UK).
Income Summary 2011-Q4 2010-Q4 2011-FY 2010-FY
€m €m €m €m
Net interest income 7,969 7,329 30,821 29,224
Dividends 101 111 394 362
Income from equity-accounted method 40 4 57 17
Net fees 2,454 2,445 10,471 9,734
Gains (losses) on financial transactions 482 715 2,500 2,606
Other operating income/expenses (38) 9 18 106
_______________________________________
Gross income 11,008 10,613 44,262 42,049
Personnel Expenses (2,644) (2,421) (10,326) (9,330)
Other general administrative expenses (1,987) (1,746) (7,455) (6,926)
________________________________________
General administrative expenses (4,631) (4,168) (17,781) (16,256)
Depreciation and amortisation (534) (531) (2,109) (1,940)
________________________________________
Operating expenses (5,164) (4,698) (19,889) (18,196)
Net operating income 5,843 5,915 24,373 23,853
Net loan-loss provisions (2,785) (2,404) (10,562) (10,258)
Impairment losses on other assets 11 (310) (173) (471)
Other income (531) (16) (2,822) (1,072)
________________________________________
Profit before taxes 2,538 3,186 10,817 12,052
Tax on profit (634) (874) (2,936) (2,923)
_______________________________________
Profit from continuing operations 1,904 2,311 7,881 9,129
Net profit from discontinued operations (3) (10) (24) (27)
_______________________________________
Consolidated profit before extraordinary item 1,901 2,301 7,857 9,102
Minority interests 184 201 836 921
______________________________________
Attributable profit before extraordinary item 1,717 2,101 7,021 8,181
Net extraordinary capital gains and provisions (1,670) — (1,670) —
_______________________________________
Attributable profit to the Group 47 2,101 5,351 8,181