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Santander won 5.77 billion until September, 10% more

Bank has recovered more than 10 billion Banco Popular's customer deposits

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Santander won 5.77 billion until September, 10% more
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Banco Santander won 5.77 billion euros in first nine months, 10% more than same period of previous year, after earmarking 515 million to extraordinary charges, according to entity. The group's income rose by 10% while expenditures did so by 7%. In eight of top ten markets had increased revenues.

The bank president, Ana Botin, said in a note: "We are very happy with progress made since we bought Banco Popular in June." "We have expanded necessary capital, reached an agreement for sale of real estate assets and recovered more than 10 billion customers ' deposits." The entity injected 13 billion in June after bank's acquisition to stop deposit leak. Santander bought Popular for a euro with a contribution of 2 billion own resources from shareholders and part of bondholders who lost ir investment.

Botin also affirms that "we will fulfill all our commercial and financial objectives, among m, to increase profit by double digit action in 2018."

In third quarter, Group noted "non-recurrent charges of 300 million euros for integration of Popular (announced at time of acquisition), of 85 million euros, mainly for integration of retail unit and banking of Consumption in Germany, and of 130 million euros for investee companies, intangible assets and or concepts, "says bank. Without se extraordinary items, ordinary benefit would have been 5.592 billion, 14% more in constant euros (i.e. excluding impact of exchange rates).

According to entity, in Spain, not counting Popular, attributed benefit increased by 61%, up to 914 million, by effect of an extraordinary net charge of 216 million euros without which gain had grown by 16%.

As for Popular, entity generated a loss attributed to 122 million for non-recurrent charge of 300 million mentioned previously registered in third quarter for integration costs.

Between June and September, group completed a capital increase of 7.72 billion; Agreed to sell 51% of real estate assets to Blackstone; Started brand change, and opened Santander ATM network to customers of Popular.

Also, loyalty bond for customers who bought shares of Popular between May 26 and June 21, 2016 already has an acceptance of more than 60% of maximum possible amount of broadcast.

Brazil and United Kingdom send

As in previous occasions, obtaining of ordinary profit is explained by geographical diversification: in nine of 10 main markets it gains more; Where you don't get it is in America "because of impact of hurricanes." Between January and September, Europe contributed 52% of profits and America, 48%. Excluding losses by property in Spain and without costs of central services, distribution of benefit by countries is as follows: Brazil contributed 26% of profits, United Kingdom 16%, Spain 15% (including Popular one that assumes 2%, Santander consumer, consumer banking, 13%, Mexico 7%, Chile 6%, United States 5%, same as Portugal, Argentina 4% and Poland 3%.

The credit portfolio also reflects this diversification, both geographically and by business segments. Mortgages to households account for 36% of portfolio, consumption 16%, business of companies 15% and SMEs 9%, among main ones.

In third quarter, excluding extraordinary charges, group obtained a profit of 1.976 billion euros, 17% more (20% in constant euros) than in same period of previous year. With extraordinary, which include integration costs of Popular already announced, benefit attributed is 1.461 billion euros, 14% less.

The capital ratio CET1 fully loaded, highest quality and following markets, rebounded eight basic points in quarter, to 10.80%. Excluding extraordinary, capital ratio would have increased to 10.86%.

The default rate fell to 113 basic points in last quarter, up to 4.24%, mainly due to agreement to sell 30 billion of Popular real estate assets. Excluded Popular, group's BlackBerry ratio drops to 3.51%.


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