All about Santander 2022 first quarter earnings - Santander earned 2,543 million in the first quarter, 58% more due to the absence of restructuring costs.
Santander earned 2,543 million euros in the first quarter of 2022, 58% more than in the same period a year ago, according to the accounts presented to the CNMV before the market opened.
This increase is due to the absence of restructuring costs: last year they amounted to 530 million euros.
The bank thus continues the recovery of the business after the pandemic that already began last year.
The group's interest margin reached 8,855 million euros, which was 11% more than a year ago.
Santander 2022 first quarter earnings
While commission income rose by 10% to 2,812 million euros in this first quarter of the year.
These figures are due, as explained by the entity in a note, to the fact that "the bank registered a strong commercial activity in the quarter".
Customer resources reached their highest figure (1.1 billion euros, up 5%) and deposits grew by 5%, to 906,000 million euros thanks to the increase in most countries.
Investment funds increased by 6% to 191,000 million euros, because of a net inflow of funds and the recovery of the markets.
Loans increased by 5% and exceeded one trillion euros for the first time after growing by 4% in Europe (Spain and Poland, 6% each), 8% in North America and 9% in South America.
Santander 2022 first quarter earnings in Europe
By markets, Europe contributed with 34% of the ordinary profit, South America with 30%, North America with 27% and Digital Consumer Bank with 9%.
The group's global businesses, Santander CIB, and Wealth Management & Insurance, continued to show solid growth.
Ordinary profit in Europe increased by 30% to 1,018 million euros, thanks to higher revenues, which grew by 5%, following robust growth in the interest margin in the United Kingdom and Poland and the positive impact of cost optimization plans in all countries.
Expenses decreased by 7% in real terms, while provisions fell by 14%. The number of digital customers increased by 6%, to 16.6 million.
In Spain, the ordinary profit was 365 million euros, 21% more than in the same period of the previous year.
Santander 2022 first quarter earnings results
This result was supported by higher commission income (+9%), lower costs (-4%) and lower provisions, thanks to an improvement in delinquencies and a good coverage ratio.
In our country, the uptick in activity in new mortgage and consumer credit was especially significant and exceeded pre-pandemic levels, which makes it possible to improve the bank's market share in both products. Loans increased by 6%, especially among individuals and private banks, while deposits increased by 9%.
The bank notes that these results have made it possible to improve the group's profitability, with a return on tangible equity (RoTE) of 14.2%, above the cost of capital, and an ordinary profit per share (EPS) of 0.14 euros, 22% more than in the first quarter of 2021. For the whole of 2022, the objective is to maintain the ordinary RoTE above 13%.
The tangible book value (known by its acronym as TNAV) per share stood at 4.29 euros in March, up 12%. This indicator per share plus dividends (which would mean value creation) grew by 13% in the last twelve months.
For its part, the delinquency ratio was 3.26%, six basis points higher than in the first quarter of 2021 after the application of a new definition of default, while the coverage ratio remained at 69%. The cost of credit (the ratio of provisions to expected credit losses) improved thirty-one basis points over the last 12 months to 0.77%.
The fully loaded CET1 capital ratio (the highest quality) stood at 12.12% and the goal is to be at 12% in the future. After discounting the impact of the acquisition of Amhrest Pierpont, the CET1 fully loaded pro forma ratio would be 12.05%.
At the beginning of April, the bank's general shareholders' meeting approved the second cash dividend payment as part of shareholder remuneration from the 2021 results. In this way, a cash dividend of 5.15-euro cents per share will be paid as of May 2, 2022.
Together with the payment made in November 2021, the total cash dividend charged to the results of the last fiscal year will be 10-euro cents per share.
If share repurchases are included, the total shareholder remuneration on the results of 2021 would reach 3,400 million euros, which would be equivalent to a return of 6%.
By 2022, the board's intention is to distribute approximately 40% of the ordinary profit, between cash dividends and share repurchases.
# Santander 2022 first quarter earnings #
