Robust retail business gives boost to Banco Santander

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Banco Santander revealed its third quarter 2024 earnings on Tuesday, recording a revenue of €15.13bn, which was an increase of 2% from the same period last year. This was mainly due to its retail branch reporting strong performance. 

Net operating income came up to €8.78bn in the third quarter of the year, which was a 5% rise from the same quarter last year. Profit before tax for the period was €4.91bn, an 11% rise on the same period last time.  

Net profit was €3.25bn, a jump of 12% on the same period last year.  

In the first nine months of the year, total income came up €46.18bn, which was an increase of 7% from the same period last year. 

Net operating income for the first nine months of 2024 also rose 12% on the same period last year, to €26.92bn. 

Profit before tax for the first nine months of the year was €14.42bn, a jump of 13% from the corresponding period in the previous year; net profit was €9.30bn, a rise of 14% on the same period in 2023.  

The bank’s retail business saw a 9% growth in revenue, with corporate and investment banking (CIB) seeing a boost of 9% as well. Similarly, the consumer department saw an increase of 5% in revenue, with the wealth and payments divisions seeing a growth of 13% and 3% respectively. 

Ana Botín, the executive chair of Banco Santander, said in a statement on the website: “The group continues to deliver strong, profitable growth, with earnings per share up 19%. We are growing both net interest income and net fee income, credit quality is robust and our transformation continues to generate positive operational leverage. 

“This reflects the strength of our diversification across both businesses and countries, and progress in the execution of our strategy. In an increasingly volatile geopolitical environment, we are confident that we will maintain this strong momentum throughout the rest of the year, delivering on all our targets, and continuing into 2025.”

Santander UK delays third quarter results

Although Banco Santander announced its third quarter results on Tuesday, its subsidiary Santander UK, cancelled its earnings release, due to be revealed on Tuesday, on Monday evening. 

Regarding the reasons for this delay, Euronews approached Santander UK for comment and the company directed us to the following statement, on the London Stock Exchange Group (LSEG) website: “This follows the publication of the judgment of the Court of Appeal in the joined appeals of Johnson, Wrench and Hopcraft on Friday 25 October 2024 in relation to disclosure to consumers of dealer commissions on motor finance transactions (the Judgment). 

“The Court of Appeal determined that a motor dealer who arranges finance for a customer owes certain duties to disclose to the customer commission from lenders, and that lenders will be liable for non-disclosure by the dealer. It also found an unfair relationship existed on the facts of one case.

“The Judgment sets a higher bar for the disclosure of and consent to the existence, nature and amount of any commission paid by a lender than had been understood prior to the decision to be required under FCA or other regulatory guidance and previous legal authorities. 

“As such, Santander UK Group Holdings plc disagrees with the conclusions reached by the Court and notes that, whilst the Judgment may set a precedent for similar claims, both defendant firms have publicly announced they will appeal the Judgment to the UK Supreme Court.

“Santander UK Group Holdings plc is taking time to consider the Judgment and the potential exposure it creates for the Santander UK Group.”