Banco Santander, S.A.
(Santander or the Bank) is a bank holding company. Santander operates principally
in Spain, the United Kingdom, Portugal, other European countries, Latin
America and the United States, offering a range of financial products.
Santander is organized in three principal segments: Continental Europe,
United Kingdom and Latin America. Continental Europe covers all retail
banking business, wholesale banking and asset management and insurance
conducted in Europe, with the exception of the United Kingdom. It also
includes the units, such as the Santander Branch Network, Banco Espanol
de Credito, S.A., Santander Consumer Finance and Portugal. United Kingdom
includes retail and wholesale banking, asset management and insurance conducted
by the various units and branches of the Bank in the United Kingdom. Latin
America segment includes activities conducted via its subsidiary banks
and other subsidiaries in Latin America.
Santander 3rd Quarter 2010
Santander’s net attributable profit, with no extraordinary items, declines
3% to EUR 6.740 billion in the first nine months
Bank reinforces its balance sheet by assigning net capital gains of EUR
2,247 million to generic provisions (EUR 1,400 million ), to provisions
for acquired properties (EUR 600 million) and to other provisions.
maintains its dividend policy and sticks to its commitment of distributing
EUR 4,812 million to shareholders.
was driven by growth in revenues (up 16%) double that of costs (up 8%).
acquisitions and exchange rate effects, revenues were up 11% and costs
rose by 11% and deposits by 21%. Continental Europe contributed 49% of
Group profit, Brazil 20%, the rest of Latin America 15% and the U.K. 16%.
Europe registered attributable profit of EUR 3,986 million, an increase
of 16%. Loans grew by 1% and deposits by 14%.
Latin America, attributable profit stood at $3,816 million (+6%) or EUR
2,798 million (down 2%), with loans falling 4% and deposits growing by
3%, excluding the sale of Banco de Venezuela and the exchange rate effect.
profit in the U.K. totalled £1,164 million (up 58%) or EUR 1,314
million, up 39%. Loans grew by 43% and deposits by 46% in pounds following
the integration of Alliance & Leicester.
non-performing loan ratio was 3.03% and the coverage rate was 73%. NPLs
in Spain stood at 2.98% and is expected to end the year below 3.5%. Growth
in the non-performing loan ratio slowed down for a second consecutive quarter,
rate increased for the first time since 2006.
Bank has made provisions of EUR 7,200 million, an increase of +54%, against
the earnings of the first nine months. Generic loan-loss reserves come
to EUR 7,469 million.
efficiency ratio stands at 41.3%, improving three points from the year
before, despite the integrations of A&L, B&B and Sovereign, with
higher costs than the Group average.
capital ratios underline Banco Santander’s solvency, with a BIS ratio of
14.3% and core capital of 8.4% following the capital increase in Brazil.
Santander expects to match in 2009 the ordinary net profit of EUR 8,876
million registered in 2008 and to maintain shareholder remuneration at
EUR 4,812 million.