Santander profits fall -35% (3.732 Bn€) for Brexit provisioning and restructuring

Santander bank secured a net profit of 3.732 Bn€ in the first nine months of the year, 35% less than a year before, after making provisions of 2.448 Bn€, mainly because of the adjustment to the goodwill in the UK due to Brexit.

These provisions of 2.448 Bn also includes an additional provision for payment protection insurance (PPI) in the UK and other charges. To this must be added the charges of 814 million announced in the first quarter, mainly for restructuring in Spain and the UK.

Santanders´s ordinary profit was 2.135 Bn€ (+7%) in the third quarter, the highest since the second quarter of 2010. The quarter´s attributable profit was 501 Mn€ after provisions of 1.634 Mn€, mainly for the adjustment to the Goodwill in the UK announced in September.

Santander confirmed in September that it will pay a first dividend charged to the 2019 results of 0.10€/share from 1 November, in line with the objective of dedicating a payout percentage of between 40% to 50% to paying dividends.

In the first nine months of the year, Santander obtained total income of 36.902 Bn€. The bank increased its number of clients by almost 6 million in the last year and already has 144 million clients, more than any other American or European bank.

The increase in clients allowed a strong increase in volumes, with an interannual increase in credit and client resources of 4% and 6% respectively, in constant euros (i.e. excluding the impact of currency exchange). Credit quality remains very solid, with a reduction in the rate of NPLs of 40 bps in the last year, to 3.47%, while the cost of credit remains stable at 1%.

The bank generated 19bps of capital organically in the quarter, which compensated for various regulatory impacts. As a result, the capital ration CET1 is at 11.30%. Excluding the regulatory impacts applied since December 2018, the ratio would be at 11.83%