Santander closed 2022 with a record profit of 9,605 million euros, a 18% more than in 2021, this improvement is due to improvements in revenue and margins.
Furthermore, the accounts reflect a boost from investment bank Santander CIB, rowing against the current of the industry.
The information was communicated by the entity itself to the delegation of the Stock Market (CNMV) this Thursday.
The entity that presides Ana Botín leave the figures behind record reached in 2007, when raised 9,060 million euros in installments, in the midst of the political noise generated by the extraordinary rate of banks and the possibility of freezing mortgages that the Government will study.
It also surpassed the Bloomberg analyst forecast from around 9 billion dollars in profits.
Going back to the results at the end of 2022, the income of Santander increased 12% until the 52,154 million euros, and its profit before provisions increased by 13% (net profit margin) up to 28,251 million euros.
He financial margin increased by 9%, highlighting strong growth in the United Kingdom (+13%), in Poland (+99%) and in Mexico (+13%), emphasizes the entity.
Income from services and commissions increased 7%, driven by higher volume and better activity.
The company estimates that will have to pay about 225 million euros in banking fees, considering the interest margin and banking fees in Spain.
He ROTE (material return on equity) was from 13.4% (12% in 2021), and the efficiency ratio improved in the year up to 45.8%, despite the effect of cost inflation.
In real terms, the costs decreased 5% in euros constants due to the greater group productivity.
Meanwhile, the default rate continued improving a 3,08% after falling eight basis points from the end of 2021.
They spied that this was mainly due to European developments and the digital consumer bank. The rate of coverage was from 68%.
The cost risk increased 22 points basics in the year 0.99% for adults provisions compared to 2021, when the bank released provisions in some countries.
Europe, the benefit that is growing the most
By geographic areas, the benefit assigned to the group was the one that grew the most in Europe, a 38%, until the 3,810 million euros, a fact without precedents for the bank.
In absolute terms, loans increase a 10% and the deposits a 5%, but they are behind South America with a contribution of 3,658 million and a slight increase of 1%.
The third contributor was North America, with 2,878 million euros and a decrease in 14% compared to 2021 by “normalization of credits for automotive activity in the United States”, they emphasize. For its part, Digital Consumer Bank recorded a profit attributed of 1,308 million euros, a 12% more.
Forecast for 2023
Despite the conditions macroeconomic and geopolitics, the bank is confident in 2023 and states that “expects growth in line with profitability.”
As a result, he set a double-digit target for increase RoTE revenue above from 15 %; The cost of risk is less than 1.2%, the ratio of efficiency is 44-45% and the CET1 is a superior 12%.
Regarding interest differentials, the entity highlighted that “Due to the increase in interest rates, Santander can receive a differential of interest of between 2,000 and 2,500 million euros in the next 12 months.”