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
27th April 2012
Santander profit down on loan losses
Santander reported Q1 net attributable of €1,604m (£1,314m $2,118m ¥172.1bn Y13,356m) DOWN 24% on the year ago period. Income was 8.3% higher overall with all sectors up with the exception of equity subsidiaries and 'other'. Alfredo Saenz, CEO, said in the results press conference that it had not written down the Spanish property assets to the new central bank standard yet. This will mean a further €1bn of charges to follow before the end of year deadline.
Geographically Europe showed improvements before impairments with the exception of the UK and elsewhere the US showed a fall also. An expense increase of 7.6% led to operating income before cost of credit up 9.2%. A more than 50% increase in provisions led to operating profit after DOWN 14.4%. Generally higher non-operational costs cut away further at the profit.
After several years of rapid profit growth the UK has continued its decline in profits first appearing last year. A combination of 11.5% fall in income and a 42% increase in loan provisions led to the 40% decline in net attributable. Loan loss provisions are explained as primarily due to a worse portfolio of the corporate portfolio.
Q1 income Summary 2012 2011 Change
€m €m %
Net interest income 7,821 7,075 10.6
Dividends 61 40 52.6
Income from equity-accounted method 136 225 (39.9)
Net fees 2,622 2,518 4.1
Gains (losses) on financial transactions 797 664 20.1
Other operating income/expenses (83) (40) >
_________________________
Gross income 11,354 10,482 8.3
Expenses
Personnel (2,637) (2,474) 6.6
Other general administrative expenses (1,911) (1,752) 9.1
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General administrative expenses (4,549) (4,227) 7.6
Depreciation and amortisation (525) (505) 4.1
__________________________
Operating expenses (5,074) (4,731) 7.2
Net operating income before credit costs 6,280 5,750 9.2
Net loan-loss provisions (3,127) (2,065) 51.4
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Net operating income after loan provisions 3,153 3,685 -14.4
Impairment losses on other assets (83) (48) 74.2
Other income (526) (546) (3.7)
__________________________
Profit before taxes 2,545 3,092 (17.7)
Tax on profit (716) (759) (5.6)
__________________________
Profit from continuing operations 1,829 2,332 (21.6)
Net profit from discontinued operations 1 (6) -—
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Consolidated profit 1,829 2,327 (21.4)
Minority interests 226 218 3.3
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Attributable profit to the Group 1,604 2,108 (23.9)