TLDR: Banco Santander has reported an attributable profit of €11,076 million for 2023, meeting all of its targets for the year. The bank saw strong growth in revenues, particularly in Europe, as well as growth in customers and good cost control. Key takeaways from the report include:
– Earnings per share increased by 21.5% compared to the previous year.
– Net interest income increased by 16% due to growth in customer activity.
– Net fee income increased by 5%, with good performance in the Americas, CIB, and Payments.
– Efficiency ratio improved to 44.1% due to the bank’s transformation toward a simpler, more digital and integrated model.
– Loan-loss provisions rose by 19% in line with expectations and in response to the ongoing interest rate environment and inflation.
– The bank paid an interim cash dividend of 8.10 euro cents per share and completed a share buyback against 2023 earnings.
– The targets for 2024 include mid-single digit revenue growth, an efficiency ratio below 43%, cost of risk of around 1.2%, RoTE of 16%, and a fully-loaded CET1 capital ratio above 12%.
– The bank’s geographic and business diversification supported consistent, profitable growth. Revenue growth was strong in Wealth Management & Insurance (+22%) and Corporate & Investment Banking (+17%).
– Santander published adapted financial disclosures to reflect its new operating model, which consolidates activities into four primary reporting segments: Retail & Commercial Banking, Digital Consumer Bank, Payments, and the global businesses of Corporate & Investment Banking and Wealth Management & Insurance.
– The bank’s 2025 RoTE targets for its global businesses include 20-22% for Retail & Commercial Banking, 15-17% for Digital Consumer Bank, 13-15% for Corporate & Investment Banking, 15-17% for Payments, and 11-13% for Wealth Management & Insurance.
– Banco Santander executive chair Ana Botín expressed confidence in the bank’s future, stating that she believes 2024 will be even better with strong momentum across its global businesses.
In conclusion, Banco Santander achieved strong financial results in 2023, with robust revenue growth, improved efficiency, and meeting all of its targets. The bank is optimistic about its future and has set ambitious goals for 2024.
