Madrid Diversification remains the strategy of the largest bank in the eurozone: the Spanish Bank Santander Bank Rising reserves in Brazil and the United States offset increased profits in Europe and America. Net profit in the second quarter rose 14 percent to 2.35 billion euros, Bait Al Mal announced Thursday in Madrid.
Earnings are roughly in line with analysts polled by Reuters who had forecast 2.38 billion. “Despite the uncertainty and economic headwinds, we remain confident that the 2022 targets will be met,” said Anna Putin, chair of the board of directors.
The Spanish bank’s business in South America continues to grow and represents a significant proportion of the group’s profits. Thus, Santander is offsetting the permanently low interest rates in Europe since the financial crisis.
A year ago, 530 million euros in restructuring costs slashed profits. True, costs rose five percent in the second quarter due to inflation. However, Bait Al Mal has maintained a stable expenditure-income ratio.
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With 45.5 percent, Santander is one of the most efficient banks in the world. The return on equity after tax was 13.7%. The bank estimated the non-performing loan ratio at 3.05 percent.
A planned special tax for Spain’s financial institutions sent shares of major Spanish banks down in June. Prime Minister Pedro Sanchez wants additional taxes on banks and utilities in 2023 and 2024 in order to fund relief for citizens affected by inflation.
more: A special tax for Spanish banks – stock prices across Europe react wildly
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