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LAST UPDATE: 24/07/2024 - 15:20
- Revenue increases by 10% to a record of €31,050 million
- Return on tangible equity (RoTE): 15.9%, or 16.3% after annualizing the impact of the Spanish bank levy
- Earnings per share increases by 19%
- New 2024 targets: high-single digit revenue growth, efficiency of c.42% and RoTE of over 16%
Don't miss these key takeways
• Fully-loaded CET1 increased to 12.5% after adding 20 basis points in the last quarter.
• TNAV plus cash dividend per share increased 12%.
• Net interest income increased 12% to a record €23,457 million, driven by growth in all businesses, particularly in Retail, CIB and Wealth.
• Net fee income increased 6%, with good commercial dynamics and higher customer activity in all global businesses.
• Efficiency improved significantly to 41.6% (-2.6 percentage points) driven by the bank’s transformation towards a simpler, more digital and integrated model, with costs stable for the fourth consecutive quarter in constant euros.
• Loan-loss provisions rose 8% due to the expected normalization in Consumer, with a good performance in Retail thanks to lower provisions in Europe.
• Credit quality remained robust, with cost of risk in line with the target for the year at 1.2%.
• In the second quarter, attributable profit reached a record high at €3,207 million, up 20%.
• Santander has upgraded three 2024 targets: high-single digit revenue growth (from mid-single digit); an efficiency of c.42% (from below 43%); RoTE of over 16% (from 16%); cost of risk of c.1.2%; and fully-loaded CET1 above 12%.
Santander achieved an attributable profit of €6,059 million in the first half of 2024, up 16% in current euros versus the same period last year, as strong growth in net interest income in all the global businesses and regions, supported by four million more customers, and very good cost control, more than offset the expected year-on-year growth in provisions.
The group continued to increase profitability and shareholder value creation, with a return on tangible equity (RoTE) of 15.9%, or 16.3% if the impact of the temporary banking levy in Spain, which was registered in full in the first quarter (€335 million), was distributed evenly across the year; earnings per share (EPS) of €0.37, up 19%, and tangible net asset value (TNAV) per share of €4.94 at the end of the first half. Including the cash dividend paid in November 2023 and the final dividend paid in May, total value creation (TNAV plus cash dividend per share) increased 12%.
As a result of the strong momentum within the business, Santander has upgraded its 2024 targets and is now expecting high-single digit revenue growth for the year (an increase from its previous target of mid-single digit growth); an efficiency ratio of c.42% (from below 43%); and RoTE of over 16% (from 16%). The targets of cost of risk at c.1.2% and fully-loaded CET1 above 12% after Basel III implementation are maintained.
We have grown revenue by 10% in the first half, supported by all five of our global businesses, with costs broadly flat for the last four quarters leading to earnings per share growth of 19%. This demonstrates that our scale, diversification, and the successful execution of our transformation continue to deliver sustainable, profitable growth.
