January - June | 2022 |
Index
Group financial information | 6 |
Group performance | 6 |
Income statement and balance sheet | 8 |
Solvency ratios | 17 |
Risk management | 18 |
General background | 21 |
Financial information by segment | 22 |
Primary segments | 22 |
Secondary segments | 39 |
Responsible banking | 47 |
Corporate governance | 49 |
The Santander share | 51 |
Appendix | 53 |
Financial information | 54 |
Alternative performance measures | 75 |
Interim condensed consolidated financial statements | 85 |
Glossary | 88 |
Important information | 89 |
This report was approved by the board of directors on 27 July 2022, following a favourable report from the audit committee. Important information regarding this report can be found on pages 89 and 90.
Group financial | Financial information | Responsible banking | |||||||
Corporate governance | Appendix | ||||||||
information | by segment | Santander share | |||||||
Key consolidated data | |||||||||
BALANCE SHEET (EUR million) | Jun-22 | Mar-22 | % | Jun-22 | Jun-21 | % | Dec-21 | ||
Total assets | 1,722,840 | 1,666,012 | 3.4 | 1,722,840 | 1,568,636 | 9.8 | 1,595,835 | ||
Loans and advances to customers | 1,037,721 | 1,011,497 | 2.6 | 1,037,721 | 954,518 | 8.7 | 972,682 | ||
Customer deposits | 973,787 | 957,820 | 1.7 | 973,787 | 894,127 | 8.9 | 918,344 | ||
Total funds | 1,204,407 | 1,196,544 | 0.7 | 1,204,407 | 1,121,969 | 7.3 | 1,153,656 | ||
Total equity | 97,462 | 99,378 | (1.9) | 97,462 | 95,745 | 1.8 | 97,053 | ||
Note: Total funds includes customer deposits, mutual funds, pension funds and managed portfolios | |||||||||
INCOME STATEMENT (EUR million) | Q2'22 | Q1'22 | % | H1'22 | H1'21 | % | 2021 | ||
Net interest income | 9,554 | 8,855 | 7.9 | 18,409 | 16,196 | 13.7 | 33,370 | ||
Total income | 12,815 | 12,305 | 4.1 | 25,120 | 22,695 | 10.7 | 46,404 | ||
Net operating income | 6,915 | 6,770 | 2.1 | 13,685 | 12,318 | 11.1 | 24,989 | ||
Profit before tax | 3,744 | 4,171 | (10.2) | 7,915 | 6,914 | 14.5 | 14,547 | ||
Profit attributable to the parent | 2,351 | 2,543 | (7.6) | 4,894 | 3,675 | 33.2 | 8,124 | ||
Changes in constant euros: | |||||||||
Q2'22 / Q1'22: NII: +4.0%; Total income: +0.2%; Net operating income: -2.6%; Profit before tax: -14.4%; Attributable profit: -11.9% | |||||||||
H1'22 / H1'21: NII: +6.9%; Total income: +4.1%; Net operating income: +3.1%; Profit before taxes: +4.4%; Attributable profit: +20.8% | |||||||||
EPS, PROFITABILITY AND EFFICIENCY (%) | Q2'22 | Q1'22 | % | H1'22 | H1'21 | % | 2021 | ||
EPS (euros) | 0.131 | 0.141 | (7.2) | 0.272 | 0.197 | 38.1 | 0.438 | ||
RoE | 10.44 | 11.49 | 10.98 | 9.53 | 9.66 | ||||
RoTE | 13.10 | 14.21 | 13.69 | 11.82 | 11.96 | ||||
RoA | 0.63 | 0.71 | 0.66 | 0.61 | 0.62 | ||||
RoRWA | 1.76 | 1.95 | 1.86 | 1.66 | 1.69 | ||||
Efficiency ratio | 46.0 | 45.0 | 45.5 | 45.7 | 46.2 | ||||
UNDERLYING INCOME STATEMENT (1) (EUR million) | Q2'22 | Q1'22 | % | H1'22 | H1'21 | % | 2021 | ||
Net interest income | 9,554 | 8,855 | 7.9 | 18,409 | 16,196 | 13.7 | 33,370 | ||
Total income | 12,815 | 12,305 | 4.1 | 25,120 | 22,695 | 10.7 | 46,404 | ||
Net operating income | 6,915 | 6,770 | 2.1 | 13,685 | 12,318 | 11.1 | 24,989 | ||
Profit before tax | 3,744 | 4,171 | (10.2) | 7,915 | 7,628 | 3.8 | 15,260 | ||
Profit attributable to the parent | 2,351 | 2,543 | (7.6) | 4,894 | 4,205 | 16.4 | 8,654 | ||
Changes in constant euros: | |||||||||
Q2'22 / Q1'22: NII: +4.0%; Total income: +0.2%; Net operating income: -2.6%; Profit before tax: -14.4%; Attributable profit: -11.9% | |||||||||
H1'22 / H1'21: NII: +6.9%; Total income: +4.1%; Net operating income: +3.1%; Profit before tax: -4.8%; Attributable profit: +6.7% | |||||||||
UNDERLYING EPS AND PROFITABILITY (1) (%) | Q2'22 | Q1'22 | % | H1'22 | H1'21 | % | 2021 | ||
Underlying EPS (euros) | 0.131 | 0.141 | (7.2) | 0.272 | 0.227 | 19.5 | 0.468 | ||
Underlying RoE | 10.44 | 11.49 | 10.98 | 10.17 | 10.29 | ||||
Underlying RoTE | 13.10 | 14.21 | 13.69 | 12.62 | 12.73 | ||||
Underlying RoA | 0.63 | 0.71 | 0.66 | 0.65 | 0.65 | ||||
Underlying RoRWA | 1.76 | 1.95 | 1.86 | 1.75 | 1.78 |
January - June 2022 | 3 |
Group financial | Financial information | Responsible banking | |||||||
Corporate governance | Appendix | ||||||||
information | by segment | Santander share | |||||||
SOLVENCY (%) | Jun-22 | Mar-22 | Jun-22 | Jun-21 | Dec-21 | ||||
Fully-loaded CET1 ratio | 12.05 | 12.12 | 12.05 | 11.70 | 12.12 | ||||
Fully-loaded total capital ratio | 15.95 | 16.15 | 15.95 | 15.42 | 16.41 | ||||
CREDIT QUALITY (%) | Q2'22 | Q1'22 | H1'22 | H1'21 | 2021 | ||||
Cost of credit (2) | 0.83 | 0.77 | 0.83 | 0.94 | 0.77 | ||||
NPL ratio | 3.05 | 3.26 | 3.05 | 3.22 | 3.16 | ||||
Total coverage ratio | 71 | 69 | 71 | 73 | 71 | ||||
MARKET CAPITALIZATION AND SHARES | Jun-22 | Mar-22 | % | Jun-22 | Jun-21 | % | Dec-21 | ||
Shares (millions) | 16,794 | 17,341 | (3.2) | 16,794 | 17,341 | (3.2) | 17,341 | ||
Share price (euros) | 2.688 | 3.100 | (13.3) | 2.688 | 3.220 | (16.5) | 2.941 | ||
Market capitalization (EUR million) | 45,143 | 53,756 | (16.0) | 45,143 | 55,828 | (19.1) | 50,990 | ||
Tangible book value per share (euros) | 4.24 | 4.29 | 4.24 | 3.98 | 4.12 | ||||
Price / Tangible book value per share (X) | 0.63 | 0.72 | 0.63 | 0.81 | 0.71 | ||||
CUSTOMERS (thousands) | Q2'22 | Q1'22 | % | H1'22 | H1'21 | % | 2021 | ||
Total customers | 156,896 | 154,762 | 1.4 | 156,896 | 149,497 | 4.9 | 152,943 | ||
Loyal customers | 26,494 | 25,978 | 2.0 | 26,494 | 24,196 | 9.5 | 25,548 | ||
Loyal retail customers | 24,361 | 23,799 | 2.4 | 24,361 | 22,076 | 10.4 | 23,359 | ||
Loyal SME & corporate customers | 2,133 | 2,179 | (2.1) | 2,133 | 2,121 | 0.6 | 2,189 | ||
Digital customers | 49,870 | 49,158 | 1.4 | 49,870 | 45,444 | 9.7 | 47,489 | ||
Digital sales / Total sales (%) | 55 | 56 | 56 | 52 | 54 |
OTHER DATA | Jun-22 | Mar-22 | % | Jun-22 | Jun-21 | % | Dec-21 |
Number of shareholders | 3,985,638 | 3,975,210 | 0.3 | 3,985,638 | 3,879,232 | 2.7 | 3,936,922 |
Number of employees | 200,651 | 200,294 | 0.2 | 200,651 | 192,843 | 4.0 | 199,177 |
Number of branches | 9,193 | 9,248 | (0.6) | 9,193 | 9,423 | (2.4) | 9,229 |
- In addition to financial information prepared in accordance with International Financial Reporting Standards (IFRS) and derived from our consolidated financial statements, this report contains certain financial measures that constitute alternative performance measures (APMs) as defined in the Guidelines on Alternative Performance Measures issued by the European Securities and Markets Authority (ESMA) on 5 October 2015, and other non-IFRS measures, including the figures related to "underlying" results, which do not include the items recorded in the separate line of "net capital gains and provisions", above the line of profit attributable to the parent. Further details are provided in the "Alternative performance measures" section of the appendix to this report.
For further details on the APMs and non-IFRS measures used, including its definition or a reconciliation between any applicable management indicators and the financial data presented in the annual consolidated financial statements prepared under IFRS, please see our 2021 Annual Financial Report, published in the CNMV on 25 February 2022, our 20-F report for the year ending 31 December 2021 filed with the SEC in the United States on 1 March 2022, as updated by the Form 6-K filed with the SEC on 8 April 2022 in order to reflect our new organizational and reporting structure, as well as the "Alternative performance measures" section of the appendix to this report.
(2) Allowances for loan-loss provisions over the last 12 months / Average loans and advances to customers over the last 12 months.
4 | January - June 2022 |
Group financial | Financial information | Responsible banking | ||
Corporate governance | Appendix | |||
Business model | information | by segments | Santander share |
Our business model is based on three pillars
01. Customer focus | 02. Our scale | 03. Diversification | ||
Deepening the relationships | Local scale and global reach | Geographic and business | ||
with our customers | diversification | |||
Top 3 NPS1 | Top 3 in lending2 | Balanced profit distribution3 |
in 6 out of 9 markets | in 10 of our markets |
157 mn
total customers
1. NPS - internal benchmark of individual customers' satisfaction audited by Stiga / Deloitte in H1'22.
2. Market share in lending as of March 2022 including only privately-owned banks. UK benchmark refers to the mortgage market. Digital Consumer Bank (DCB) refers to auto in Europe.
3. H1'22 underlying attributable profit by region. Operating areas excluding Corporate Centre.
Our business model remains a source of great strength and resilience
Our corporate culture
The Santander Way remains unchanged to continue to deliver for all our stakeholders
Our purpose
To help people and businesses prosper.
Our aim
To be the best open financial services platform, by acting responsibly and earning the lasting loyalty of our people, customers, shareholders and communities.
Our how
Everything we do should be
Simple, Personal and Fair.
January - June 2022 | 5 |
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Banco Santander SA published this content on 28 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2022 06:27:06 UTC.