The first quarter’s result compares with the 186 million euros recorded by Totta in the same period last year. Financial margin increased by almost 65%. Staff decreased by almost 100 workers.
Santander recorded a profit of 294.4 million euros at the end of the first quarter of 2024. The net result achieved by the financial institution is 58.4% higher than the 185.9 million obtained at the end of the same period last year, benefiting from the increase in almost 65% of the financial margin.
The credit portfolio grew, while the deposit portfolio declined. The volume of loans at the end of March was 46.6 billion euros, which represents an increase of 9.6% compared to the end of the first quarter of 2023. However, mortgage credit decreased by 1.5 %, while consumer credit was almost unchanged.
Non-performing loans (measured in the NPE ratio, an acronym for the English expression “Non-Pergorming Exposures”) fell from 2.1% to 1.8%.
Customer resources amounted to 43.8 billion euros, falling 2.3% compared to the same period in 2023, a drop “largely explained by the behavior of deposits, but which was offset by the diversification of savings to resources outside of balance sheet, which grew 10.1% in this period”, explains the institution led by Pedro Castro e Almeida.
Margin shoots up 64.6%
The bank continued to benefit from the increase in financial margin, which rose 64.6%, reaching 440.6 million euros.”The evolution of this component reflects, almost entirely, the evolution of market interest rates, which allowed for growth compared to the same period last year. The quarterly dynamics, however, already reflected, on the one hand, the effects of the increase in the remuneration of the deposit base, and, on the other, the inversion of the yield curve associated with expectations that the European Central Bank may be able to do so. start a new monetary cycle in the coming quarters”, anticipates the financial institution. Commission income fell slightly to 120.9 million (0.7% less). The combination of the two indicators explains the 39.1% increase in banking income to 567.3 million euros.
Fewer workers but costs grew
Totta reached the end of March 2024 with 97 fewer workers than in the same period the previous year: there are now 4,580 people. The bank’s 330 branches are four fewer than at the end of the first quarter of last year.
Operating costs “remained practically stable compared to the same period in 2023 (+1.1%), despite inflation, especially in services, still remaining well above 2%”, indicates the bank.
27% return
Between March of last year and the same month of 2024, the RoE (“Return on Equity”), which measures shareholder return, gained 7.5 percentage points, from 19.7% to 27.2%.
The CET 1 ratio (“Common Equity Tier 1”) had a slight increase, from 13.4% to 13.6%.
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