Financial Report | 2020 |
January - March |
BALANCE SHEET (EUR million) | Mar-20 | Dec-19 | % | Mar-19 | % | Dec-19 | ||||||
Total assets | 1,540,359 | 1,522,695 | 1.2 | 1,506,151 | 2.3 | 1,522,695 | ||||||
Loans and advances to customers | 935,407 | 942,218 | (0.7 | ) | 910,195 | 2.8 | 942,218 | |||||
Customer deposits | 815,459 | 824,365 | (1.1 | ) | 808,361 | 0.9 | 824,365 | |||||
Total funds | 1,006,948 | 1,050,765 | (4.2 | ) | 1,019,878 | (1.3 | ) | 1,050,765 | ||||
Total equity | 106,113 | 110,659 | (4.1 | ) | 110,365 | (3.9 | ) | 110,659 | ||||
Note: Total funds includes customer deposits, mutual funds, pension funds and managed portfolios |
INCOME STATEMENT (EUR million) | Q1'20 | Q4'19 | % | Q1'19 | % | 2019 | ||||||
Net interest income | 8,487 | 8,841 | (4.0 | ) | 8,682 | (2.2 | ) | 35,283 | ||||
Total income | 11,809 | 12,327 | (4.2 | ) | 12,085 | (2.3 | ) | 49,229 | ||||
Net operating income | 6,220 | 6,356 | (2.1 | ) | 6,327 | (1.7 | ) | 25,949 | ||||
Profit before tax | 1,891 | 3,831 | (50.6 | ) | 3,602 | (47.5 | ) | 12,543 | ||||
Attributable profit to the parent | 331 | 2,783 | (88.1 | ) | 1,840 | (82.0 | ) | 6,515 | ||||
Change in constant euros: | ||||||||||||
Q1'20 / Q4'19: NII: -1.8%; Total income: -2.0%; Net operating income: +0.8%; Attributable profit: -87.5% | ||||||||||||
Q1'20 / Q1'19: NII: +2.7%; Total income: +2.7%; Net operating income: +4.2%; Attributable profit: -80.2% |
UNDERLYING INCOME STATEMENT (1) (EUR million) | Q1'20 | Q4'19 | % | Q1'19 | % | 2019 | ||||||
Net interest income | 8,487 | 8,841 | (4.0 | ) | 8,682 | (2.2 | ) | 35,283 | ||||
Total income | 11,814 | 12,592 | (6.2 | ) | 12,085 | (2.2 | ) | 49,494 | ||||
Net operating income | 6,237 | 6,621 | (5.8 | ) | 6,327 | (1.4 | ) | 26,214 | ||||
Profit before tax | 3,556 | 3,506 | 1.4 | 3,684 | (3.5 | ) | 14,929 | |||||
Attributable profit to the parent | 1,977 | 2,072 | (4.6 | ) | 1,948 | 1.5 | 8,252 | |||||
Variations in constant euros: | ||||||||||||
Q1'20 / Q4'19: NII: -1.8%; Total income: -4.1%; Net operating income: -3.1%; Attributable profit: -1.5% | ||||||||||||
Q1'20 / Q1'19: NII: +2.7%; Total income: +2.7%; Net operating income: +4.5%; Attributable profit: +7.9% |
EPS, PROFITABILITY AND EFFICIENCY (%) | Q1'20 | Q4'19 | % | Q1'19 | % | 2019 | ||||||
EPS (euros) | 0.012 | 0.161 | (92.8 | ) | 0.104 | (89.0 | ) | 0.362 | ||||
Underlying EPS (euros) (1) | 0.111 | 0.116 | (5.0 | ) | 0.111 | (0.3 | ) | 0.468 | ||||
RoE | 6.31 | 9.10 | 7.85 | 6.62 | ||||||||
RoTE | 8.75 | 12.62 | 11.15 | 9.31 | ||||||||
Underlying RoTE (1) | 11.06 | 11.63 | 11.31 | 11.79 | ||||||||
RoA | 0.49 | 0.68 | 0.63 | 0.54 | ||||||||
RoRWA | 1.25 | 1.69 | 1.54 | 1.33 | ||||||||
Underlying RoRWA (1) | 1.52 | 1.57 | 1.56 | 1.61 | ||||||||
Efficiency ratio | 47.2 | 47.4 | 47.6 | 47.0 |
SOLVENCY AND NPL RATIOS (%) | Mar-20 | Dec-19 | Mar-19 | Dec-19 | ||||||
CET1 (2) | 11.58 | 11.65 | 11.23 | 11.65 | ||||||
Fully loaded Total capital ratio (2) | 15.08 | 15.02 | 14.82 | 15.02 | ||||||
NPL ratio | 3.25 | 3.32 | 3.62 | 3.32 | ||||||
Coverage ratio | 71 | 68 | 68 | 68 |
MARKET CAPITALISATION AND SHARES | Mar-20 | Dec-19 | % | Mar-19 | % | Dec-19 | ||||||
Shares (millions) | 16,618 | 16,618 | — | 16,237 | 2.3 | 16,618 | ||||||
Share price (euros) | 2.218 | 3.730 | (40.5 | ) | 4.145 | (46.5 | ) | 3.730 | ||||
Market capitalisation (EUR million) | 36,859 | 61,986 | (40.5 | ) | 67,292 | (45.2 | ) | 61,986 | ||||
Tangible book value per share (euros) | 4.21 | 4.36 | 4.30 | 4.36 | ||||||||
Price / Tangible book value per share (X) | 0.53 | 0.86 | 0.96 | 0.86 | ||||||||
P/E ratio (X) | 48.29 | 10.30 | 9.94 | 10.30 |
OTHER DATA | Mar-20 | Dec-19 | % | Mar-19 | % | Dec-19 | ||||||
Number of shareholders | 4,043,974 | 3,986,093 | 1.5 | 4,089,097 | (1.1 | ) | 3,986,093 | |||||
Number of employees | 194,948 | 196,419 | (0.7 | ) | 202,484 | (3.7 | ) | 196,419 | ||||
Number of branches | 11,902 | 11,952 | (0.4 | ) | 13,277 | (10.4 | ) | 11,952 |
(1) 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, as they are recorded in the separate line of “net capital gains and provisions”, above the line of attributable profit to the parent. Further details are provided on page 14 of this report. For further details of 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 consolidated financial statements prepared under IFRS, please see 2019 Annual Financial Report, published in the CNMV on 28 February 2020, our 20-F report for the year ending 31 December 2019 registered with the SEC in the United States as well as the “Alternative performance measures” section of the appendix to this report. |
(2) Data applying the IFRS 9 transitional arrangements. |
January - March 2020 | 5 |
Response to the COVID-19 crisis Business model | ||||||||
Response to COVID-19 crisis |
Contingency plan | Health of our employees | ||||
Preserving our critical business and functions is essential to providing our services to customers under the same standards as usual. Consequently, the Group has the necessary contingency plans to ensure the continuity of all our businesses and react effectively in any eventuality. To this end, periodic crisis simulations have been carried out in recent years. In February, in line with our special situations management framework, the highest level corporate crisis committees were activated to coordinate the situation and to give a global response in all geographic areas. Different action plans were implemented to coordinate the different corporate areas and their counterparties in all countries, including all subsidiaries’ Board Chairs, Country Heads, Global Directors and local crisis committees. For example, only in March the corporate crisis committees held follow-up meetings almost on a daily basis at the Bronze and Silver levels, whilst the Gold Committee was held on five occasions and shared information with the board in four meetings. Previous training carried out by the Group for the swift and agile activation of protocols and procedures was key for the continuity of our business with no significant disruption in this unprecedented situation. From the beginning, all units have identified their critical businesses and implemented contingency plans by splitting teams, establishing shifts between critical persons and their back-ups, segregating technological infrastructure, etc. Likewise, the technology area proceeded to increase the capacity of systems and lines, while providing the appropriate equipment to adapt the organisation to the new telecommuting situation. In addition, we have made sure that our key suppliers have contingency plans that ensure the continuity of our activity in order to ensure the proper functioning of our services. | One of our priorities is to protect the health of our employees. To this end, we have laid out a series of measures: • We have provided all our employees the necessary hygiene guidelines to limit the spread of COVID-19.• At the same time, and to avoid the outbreak of COVID-19, we put in place travel and face-to-face meeting restrictions for our employees straight away.• We also established large scale remote working in all Group countries. Currently, 112,000 employees, which account for more than half of the total workforce are telecommuting, almost 100% of the central services employees in some countries.This was reflected in the sharp increase of video and internet call connections (exceeding 780,000 per day) and more than 3 million chat lines in a single day. • As for our branch network, we have also taken measures to combine customer service with the protection of our employees' health, for example: closure of some of our branches, reduce opening hours, shifts, limiting the number of costumers in a branch at a time, in compliance with the authorities' recommendations on safe distances between people and avoiding physical contact.• The Bank has reinforced its hygiene protocol at its branches and ATMs and is promoting the use of digital channels by customers.• We have also made services available for our employees, aimed at ensuring their well-being and balance between professional and family life (Santander Contigo). | ||||
January - March 2020 | 6 |
Response to the COVID-19 crisis Business model | ||||||||
Response to COVID-19 crisis |
Customers | Business, liquidity and risks | ||||
Santander has implemented measures to ensure the health and safety of its customers and foster their economic resilience during the crisis in all countries. Of note were: • Provide liquidity and credit facilities for businesses facing hardship.• Facilitate payment deferrals and repayment holidays in many of our markets.• Temporary option to increase credit card and overdraft limits.• Proactive support for vulnerable customers (senior citizens, SMEs, etc.) trying to cover their needs.• Temporary reduction and suspension of fees (withdrawals from ATMs, interest free online purchases, bank transfers, ...).• Ensure COVID-19 health insurance coverage.• Specialised teams to advise customers facing financial difficulties.We also adapted the branch network to the current situation, with some closures, but ensuring the continuity of service in the branch network. On the other hand, we strengthened our contact centres' capabilities, which has enabled us to increase the volume of services by 21% on average compared to normal times. Additionally, following the recommendation issued by the European Central Bank, the Bank's board decided to cancel the payment of the final dividend for 2019 and its dividend policy for 2020 until there is greater visibility on the impact of the crisis. The Bank is reevaluating the situation as the pandemic evolves in each market, and takes action according to the specific needs of every country and market. | Business performance continued its growth trajectory. Group loans and advances to customers increased 7% and customer funds 4% year-on-year, excluding the exchange rate impact, following the rise in the quarter. The positive star of the year was affected in March by the first impacts of the crisis, although, in terms of new business and balances, growth in corporates and large corporates offset the declines in individuals and consumer credit. Since the start of the crisis, business performance and liquidity have been closely monitored n the parent bank and our subsidiaries. Our liquidity position has remained solid at all times. The Group's LCR ratio was 146% at the end of the quarter, the parent bank's was 134% and all our subsidiaries stood above 125%. Likewise, the liquidity buffer is ample. In addition, central banks announced anti-crisis packages to pump liquidity in the system and the Group is rolling out preventive management measures to strengthen its position. Regarding risks, the main indicators are also continuously monitored and reported. The impacts of COVID-19 have not yet materialised in the first quarter indicators, which reflect an improvement in the credit quality and coverage ratios. As acknowledged by the IASB and other regulators and supervisors, it is likely to be difficult at this time to know the specific effects the health crisis and government and central bank support measures, such as mortgage repayment holidays, credit lines and guarantees and other mitigating packages, will have. Nevertheless, and in compliance with the accounting standard (IFRS 9), which includes the incorporation of forward-looking macroeconomic information in the calculation of provisions, that include future effects arising from changes in variables to which the models are sensitive (GDP, unemployment, house prices, etc.), the Group recorded a provisions overlay in the quarter of EUR 1.6 billion, based on the expected deterioration arising from the pandemic. | ||||
January - March 2020 | 7 |
Response to the COVID-19 crisis Business model | ||||||||
Response to COVID-19 crisis |
Society | Information for stakeholders | ||||
One of our main priorities is to contribute to the well-being of society as a whole. We have implemented actions and mobilised resources together with governments and institutions to help society combat the health crisis. Santander All. Together. Now. is the motto that brings together the Group's collective efforts around the world to stand beside the people who need it the most at this time. This effort has succeeded in mobilising EUR 100 million worldwide dedicated to solidarity initiatives to fight COVID-19. The main initiatives adopted are: • Creation of a solidarity fund which amounts to EUR 54 million to acquire medical equipment and materials, and to support organisations in the fight against COVID-19. This fund is primarily financed by contributions from senior management, employees and the Group's subsidiaries, as well as contributions from third parties. As a starting point, the Executive Chairman and the CEO, have decided to give up 50% of their compensation in 2020 (fixed and variable) and non-executive directors 20% of their total remuneration. The Group has created employee funds in most of the countries where it operates.Only in Spain, one of the most affected countries, the Bank has donated more than 4 million high-protection masks, 500 non-invasive respirators and thousands of hospital beds and blankets, protective suits and gloves. • Supporting different projects and social initiatives to protect the vulnerable groups most impacted by the effects of the pandemic (especially in the UK and the US). EUR 16 million has been donated so far.• Santander has also mobilised more than EUR 30 million through Santander Universidades, to support collaboration projects with universities that will help to find solutions to the health and educational challenges arising from the COVID-19 crisis, scholarships to foster online education during the confinement period and support the most disadvantaged students.• Launch of Overcome Together, an open and accessible space for individuals and companies, both customers and non-customers, which contains information and resources to help overcome the situation arising from COVID-19. It is already available in Spain, Portugal, Mexico, Brazil, Uruguay and Chile, and will be soon available in other countries.We will continue to monitor the situation of this global health crisis in order to continue to contribute to minimise its impact on society. | Since the crisis started, the Group has been proactive in keeping our people, customers, shareholders and investors informed at all times and providing advice. The communication plan is based on transparency and anticipation, and followed different stages as the COVID-19 pandemic evolved: • First phase of information and prevention: started on 23 January after the COVID-19 outbreak in China, and was focused on informing and raising awareness among Group employees about basic hygiene measures to prevent contagion.• Second phase of recommendations and protections: in early March, the Group focused on communicating its employees in all countries the travelling recommendations, meeting policies and protocols for potential infections.• Third phase regarding the business continuity plan: it began on 10 March, with internal communication focused on contingency plans implementation and telecommuting. We also issued communications to our customers, encouraging the use of digital channels, new branch opening hours and and functionality, and all information regarding public and the Bank's support measures. In addition, the Group announced to its shareholders that the annual general Meeting would be held via remote channels, the changes regarding the 2019 and 2020 dividend policy, on the creation of a fund of an initial value of EUR 25 million to help the health authorities cover its most urgent needs.It is also worth highlighting the commitment of the Bank's senior management, both the Chairman, who held three Ask Ana events to answer the employees' questions, as well as the CEO, Senior Executives and Country Heads, who have been constantly in touch with the teams. The main measures announced by each country can be found on the Group's website (www.santander.com). | ||||
January - March 2020 | 8 |
Response to the COVID-19 crisis Business model | Group financial information | Financial information by segments | Responsible banking Corporate governance Santander share | Appendix | ||||
Business model |
1. Our scale Local scale and global reach | 2. Customer focus Unique personal banking relationships strengthen customer loyalty | 3. Diversification Our geographic and business diversification make us more resilient under adverse circumstances | ||||
• Local scale based on three geographic regions, where we maintain a leadership position in our 10 core markets.• Global reach backed by our global businesses, enabling greater collaboration across the Group to generate higher revenue and efficiencies. | • We serve 146 million customers, in markets with a total population of more than one billion people.• We have over 100,000 people talking to our customers every day in our c.12,000 branches and contact centres. | • Geographic diversification in three regions, with a good balance between mature and developing markets.• Global businesses that strengthen our local franchises.• Santander Global Platform supports the digital transformation across the Group. | ||||
1. Market share in lending as of Dec-19 including only privately-owned banks. UK benchmark refers to the mortgage market. | 2. NPS – Customer Satisfaction internal benchmark of active customers’ experience and satisfaction audited by Stiga / Deloitte. | Note. Underlying attributable profit contribution by region, excluding Santander Global Platform and Corporate Centre. |
January - March 2020 | 9 |
"From the start of this crisis we have been determined to do everything in our power to fight the pandemic and support the recovery, and this remains our utmost priority" |
"Our strong pre-provision profit across the cycle, combined with our resilient balance sheet and capital position, are the key levers to manage the economic downturn" |
Loyal customers | Digital customers | |
Millions | Millions |
+6% |
+13% |
Activity Mar-20 vs. Mar-19 | ||||||||||||
% change in constant euros | ||||||||||||
+6% | ||||||||||||
Individuals | ||||||||||||
+7% | ||||||||||||
+2% | Demand | |||||||||||
SMEs and corporates | ||||||||||||
+3% | ||||||||||||
+7% | +4% | Time | ||||||||||
+22% | ||||||||||||
CIB and institutions | -2% | |||||||||||
Mutual funds | ||||||||||||
Gross loans and advances to customers excl. reverse repos | Customer deposits excl. repos + mutual funds |
10 | January - March 2020 |
Att. profit to the parent | Earnings per share | |
EUR million | Euros |
Efficiency ratio | RoTE | ||||
% | % | ||||
n Total n Underlying* |
CET1* | Tangible equity per share | |
% | Euros |
Cost of credit | NPL ratio and coverage | ||||
% | % | ||||
n Mar-19 n Mar-20 |
January - March 2020 | 11 |
• | First quarter attributable profit to the parent of EUR 331 million, including a net negative impact of EUR 1,646 million that is outside the ordinary course performance of our business, of which EUR 1.6 billion corresponds to the creation of a provisions overlay based on the expected deterioration of the macroeconomic conditions arising from the health crisis. |
• | Excluding these charges, underlying attributable profit of 1,977 million euros, 1% more than in the same period of 2019 (+ 8% without exchange rate impact). |
• | Results reflect a negative impact on the year-on-year comparison of exchange rate performance: 5 pp in revenue and 4 pp in costs. |
• | By geographic area, underlying profit grew in all countries in the Americas (except Chile) and fell in Europe in a more complicated business environment. |
• | In 2019, results continued to reflect a solid underlying trend in constant euros: customer revenue continued to increase, costs show the synergies obtained and the cost of credit remained stable. |
• | As regards profitability ratios: underlying RoTE of 11.06% and underlying RoRWA of 1.52% (11.31% and 1.56%, respectively, in the first quarter of 2019). |
Grupo Santander. Summarised income statement | ||||||||||||||
EUR million | ||||||||||||||
Change | Change | |||||||||||||
Q1'20 | Q4'19 | % | % excl. FX | Q1'19 | % | % excl. FX | ||||||||
Net interest income | 8,487 | 8,841 | (4.0 | ) | (1.8 | ) | 8,682 | (2.2 | ) | 2.7 | ||||
Net fee income (commission income minus commission expense) | 2,853 | 2,961 | (3.6 | ) | (1.5 | ) | 2,931 | (2.7 | ) | 3.1 | ||||
Gains or losses on financial assets and liabilities and exchange differences (net) | 287 | 596 | (51.8 | ) | (51.7 | ) | 277 | 3.6 | 15.2 | |||||
Dividend income | 57 | 100 | (43.0 | ) | (42.9 | ) | 66 | (13.6 | ) | (13.8 | ) | |||
Share of results of entities accounted for using the equity method | 98 | (119 | ) | — | (31.2 | ) | 153 | (35.9 | ) | (33.1 | ) | |||
Other operating income / expenses | 27 | (52 | ) | — | — | (24 | ) | — | 647.0 | |||||
Total income | 11,809 | 12,327 | (4.2 | ) | (2.0 | ) | 12,085 | (2.3 | ) | 2.7 | ||||
Operating expenses | (5,589 | ) | (5,971 | ) | (6.4 | ) | (4.9 | ) | (5,758 | ) | (2.9 | ) | 1.0 | |
Administrative expenses | (4,860 | ) | (5,179 | ) | (6.2 | ) | (4.6 | ) | (5,011 | ) | (3.0 | ) | 0.9 | |
Staff costs | (2,899 | ) | (3,053 | ) | (5.0 | ) | (3.7 | ) | (3,006 | ) | (3.6 | ) | (0.2 | ) |
Other general administrative expenses | (1,961 | ) | (2,126 | ) | (7.8 | ) | (6.0 | ) | (2,005 | ) | (2.2 | ) | 2.7 | |
Depreciation and amortisation | (729 | ) | (792 | ) | (8.0 | ) | (6.9 | ) | (747 | ) | (2.4 | ) | 1.4 | |
Impairment or reversal of impairment of financial assets not measured at fair value through profit or loss (net)* | (3,934 | ) | (2,542 | ) | 54.8 | 58.5 | (2,246 | ) | 75.2 | 84.6 | ||||
o/w: net loan-loss provisions* | (3,919 | ) | (2,573 | ) | 52.3 | 56.1 | (2,172 | ) | 80.4 | 90.4 | ||||
Impairment on other assets (net) | (14 | ) | (76 | ) | (81.6 | ) | (80.8 | ) | (20 | ) | (30.0 | ) | (29.4 | ) |
Provisions or reversal of provisions | (374 | ) | (979 | ) | (61.8 | ) | (60.3 | ) | (465 | ) | (19.6 | ) | (15.9 | ) |
Gains or losses on non financial assets and investments, net | 18 | 1,038 | (98.3 | ) | (98.3 | ) | 219 | (91.8 | ) | (91.8 | ) | |||
Negative goodwill recognised in results | — | — | — | — | — | — | — | |||||||
Gains or losses on non-current assets held for sale not classified as discontinued operations | (25 | ) | 34 | — | — | (213 | ) | (88.3 | ) | (88.2 | ) | |||
Profit or loss before tax from continuing operations | 1,891 | 3,831 | (50.6 | ) | (49.1 | ) | 3,602 | (47.5 | ) | (42.9 | ) | |||
Tax expense or income from continuing operations | (1,244 | ) | (687 | ) | 81.1 | 74.7 | (1,357 | ) | (8.3 | ) | (0.5 | ) | ||
Profit from the period from continuing operations | 647 | 3,144 | (79.4 | ) | (78.4 | ) | 2,245 | (71.2 | ) | (68.6 | ) | |||
Profit or loss after tax from discontinued operations | — | — | — | — | — | — | — | |||||||
Profit for the period | 647 | 3,144 | (79.4 | ) | (78.4 | ) | 2,245 | (71.2 | ) | (68.6 | ) | |||
Attributable profit to non-controlling interests | (316 | ) | (361 | ) | (12.5 | ) | (7.8 | ) | (405 | ) | (22.0 | ) | (17.6 | ) |
Attributable profit to the parent | 331 | 2,783 | (88.1 | ) | (87.5 | ) | 1,840 | (82.0 | ) | (80.2 | ) | |||
EPS (euros) | 0.012 | 0.161 | (92.8 | ) | 0.104 | (89.0 | ) | |||||||
Diluted EPS (euros) | 0.011 | 0.160 | (92.8 | ) | 0.104 | (89.0 | ) | |||||||
Memorandum items: | ||||||||||||||
Average total assets | 1,536,725 | 1,530,761 | 0.4 | 1,488,505 | 3.2 | |||||||||
Average stockholders' equity | 99,221 | 98,851 | 0.4 | 97,886 | 1.4 |
12 | January - March 2020 |
• | Net interest income amounted to EUR 8,487 million, down 2% compared to the first three months of 2019. Excluding the FX impact, growth was 3% due to greater lending and deposit volumes, and management of spreads in an environment of falling interest rates in the past year in numerous markets, and with still negative interest rates in Europe. |
Net interest income | |
EUR million | |
constant euros |
• | Net fee income was 3% lower at EUR 2,853 million. Excluding the exchange rate impact, net fee income was 3% higher year-on-year, despite the impact of regulatory changes in various units, such as the UK and SCF. The strategy remained focused on increasing loyalty and growing higher value-added products and services. |
Net fee income | |
EUR million | |
constant euros |
January - March 2020 | 13 |
• | Gains on financial transactions, which account for only 2% of total income, amounted to EUR 287 million with no material change compared to the first quarter of 2019. |
• | Dividend income was EUR 57 million in the first three months of 2020, 14% lower than in the same period of 2020. This item started to be affected by the delay or cancellation of dividend payments by several companies. |
• | The share of results of entities accounted for by the equity method decreased 36% to EUR 98 million (-33% excluding the FX impact) mainly due to lower income from real estate stakes in Spain. |
• | Other operating income amounted to EUR 27 million (loss of EUR 24 million in the first quarter of 2019). |
Total income | |
EUR million | |
constant euros |
• | In Europe, costs reflect the synergies of integrations, and fell 3.4% in nominal terms and 4.6% in real terms. Regarding the latter, of note were the declines in Spain (-8%) and Portugal (-4%) due to the efficiencies resulting from the integration of Popular and the optimisation efforts, the UK (-6%) reflecting cost savings from our transformation programme and Poland (-4%), in an environment of high single-digit salary pressures. |
• | In North America, costs were 2.5% higher in nominal terms affected by inflation. In real terms, they remained broadly unchanged, with Mexico increasing 1.5%, while in the US they fell 0.7%. The higher revenue enabled us to improve the efficiency ratio in this region to 41.7%. |
• | Lastly, in South America, the increase in costs was significantly distorted by the very high inflation in Argentina. Excluding it, the increase was 3.4% in nominal terms and 0.3% in real terms, with Brazil performing well (-2%). Efficiency improved in all markets (1.1 percentage points in the region). |
Operating expenses | |
EUR million | |
constant euros |
14 | January - March 2020 |
Net loan-loss provisions | |
EUR million | |
constant euros |
Attributable profit to the parent | |
EUR million | |
constant euros |
January - March 2020 | 15 |
• | In the first quarter of 2020, a provisions overlay of EUR 1.6 billion was recorded and restructuring costs of EUR 46 million as follows: EUR 23 million in the UK, EUR 12 million in Santander Consumer Finance, EUR 2 million in Poland and EUR 9 million in Other Europe. |
• | In the first quarter of 2019, capital gains from the sale of 51% of our stake in the Argentinian entity Prisma Medios de Pago S.A. and the revaluation of the remaining 49% (EUR 150 million), capital losses related to real estate assets in Spain (EUR -180 million) and restructuring costs in the UK and Poland (EUR -78 million). |
Summarised underlying income statement | ||||||||||||||
EUR million | Change | Change | ||||||||||||
Q1'20 | Q4'19 | % | % excl. FX | Q1'19 | % | % excl. FX | ||||||||
Net interest income | 8,487 | 8,841 | (4.0) | (1.8) | 8,682 | (2.2) | 2.7 | |||||||
Net fee income | 2,853 | 2,961 | (3.6) | (1.5) | 2,931 | (2.7) | 3.1 | |||||||
Gains (losses) on financial transactions (1) | 292 | 596 | (51.0) | (50.7) | 277 | 5.4 | 16.9 | |||||||
Other operating income | 182 | 194 | (6.2) | (1.2) | 195 | (6.7) | (15.9) | |||||||
Total income | 11,814 | 12,592 | (6.2) | (4.1) | 12,085 | (2.2) | 2.7 | |||||||
Administrative expenses and amortisations | (5,577 | ) | (5,971 | ) | (6.6) | (5.1) | (5,758 | ) | (3.1) | 0.8 | ||||
Net operating income | 6,237 | 6,621 | (5.8) | (3.1) | 6,327 | (1.4) | 4.5 | |||||||
Net loan-loss provisions | (2,309 | ) | (2,573 | ) | (10.3) | (8.1) | (2,172 | ) | 6.3 | 12.2 | ||||
Other gains (losses) and provisions | (372 | ) | (542 | ) | (31.4) | (29.6) | (471 | ) | (21.0) | (17.3) | ||||
Profit before tax | 3,556 | 3,506 | 1.4 | 4.8 | 3,684 | (3.5) | 2.8 | |||||||
Tax on profit | (1,260 | ) | (1,109 | ) | 13.6 | 17.3 | (1,326 | ) | (5.0) | 1.9 | ||||
Profit from continuing operations | 2,296 | 2,397 | (4.2) | (1.0) | 2,358 | (2.6) | 3.3 | |||||||
Net profit from discontinued operations | — | — | — | — | — | — | — | |||||||
Consolidated profit | 2,296 | 2,397 | (4.2) | (1.0) | 2,358 | (2.6) | 3.3 | |||||||
Non-controlling interests | (319 | ) | (325 | ) | (1.8) | 2.0 | (410 | ) | (22.2) | (18.1) | ||||
Underlying attributable profit to the parent | 1,977 | 2,072 | (4.6) | (1.5) | 1,948 | 1.5 | 7.9 | |||||||
Net capital gains and provisions | (1,646 | ) | 711 | — | — | (108 | ) | 0.0 | 943.0 | |||||
Attributable profit to the parent | 331 | 2,783 | (88.1) | (87.5) | 1,840 | (82.0) | (80.2) |
16 | January - March 2020 |
• | In the first quarter of 2020: EUR -1,646 million, detailed on previous pages. |
• | On the other hand, in the fourth quarter of 2019, positive results of EUR 711 million, as follows: EUR 693 million stemming from the agreement with Crédit Agricole S.A. for the integration of the custody businesses and EUR 551 million due to changes in tax regulation in Brazil, and negative results of EUR 225 million related to real estate stakes in Spain, EUR 140 million of restructuring costs and EUR 168 million for intangible assets and other. |
• | Total income was down 4%: net interest income declined 2%, strongly conditioned by Brazil and the UK (on the other hand, increases in Santander Consumer Finance and Chile). Net fee income was 1% lower, due to the UK, Argentina, where the fourth quarter was above average, and Brazil, where the fourth quarter was seasonally higher due to the collection of insurance premiums. Of particular note were the quarterly increases in Spain and the US, which reached the highest figure in the last five quarters. |
• | Operating expenses decreased 5% driven by the falls in all business units, except Santander Consumer Finance, Poland and the UK. Of note were Brazil , the US and Argentina. |
• | Loan-loss provisions dropped 8% primarily due to the seasonality of SC USA, a single name case in the UK and the strong volume growth in Brazil, all of them recorded in the previous quarter. |
Underlying attributable profit to the parent* | |
EUR million | |
constant euros |
January - March 2020 | 17 |
Response to the COVID-19 crisis Business model | ||||||||
Balance sheet |
Grupo Santander. Condensed balance sheet | ||||||||||
EUR million | ||||||||||
Change | ||||||||||
Assets | Mar-20 | Mar-19 | Absolute | % | Dec-19 | |||||
Cash, cash balances at central banks and other demand deposits | 122,456 | 103,500 | 18,956 | 18.3 | 101,067 | |||||
Financial assets held for trading | 125,846 | 98,592 | 27,254 | 27.6 | 108,230 | |||||
Debt securities | 28,969 | 30,162 | (1,193 | ) | (4.0 | ) | 32,041 | |||
Equity instruments | 8,605 | 11,982 | (3,377 | ) | (28.2 | ) | 12,437 | |||
Loans and advances to customers | 298 | 241 | 57 | 23.7 | 355 | |||||
Loans and advances to central banks and credit institutions | — | — | — | — | — | |||||
Derivatives | 87,974 | 56,207 | 31,767 | 56.5 | 63,397 | |||||
Financial assets designated at fair value through profit or loss | 67,142 | 82,149 | (15,007 | ) | (18.3 | ) | 66,980 | |||
Loans and advances to customers | 31,270 | 24,535 | 6,735 | 27.5 | 31,147 | |||||
Loans and advances to central banks and credit institutions | 28,775 | 48,250 | (19,475 | ) | (40.4 | ) | 28,122 | |||
Other (debt securities an equity instruments) | 7,097 | 9,364 | (2,267 | ) | (24.2 | ) | 7,711 | |||
Financial assets at fair value through other comprehensive income | 110,238 | 116,359 | (6,121 | ) | (5.3 | ) | 125,708 | |||
Debt securities | 99,557 | 111,519 | (11,962 | ) | (10.7 | ) | 118,405 | |||
Equity instruments | 2,291 | 2,590 | (299 | ) | (11.5 | ) | 2,863 | |||
Loans and advances to customers | 8,390 | 2,250 | 6,140 | 272.9 | 4,440 | |||||
Loans and advances to central banks and credit institutions | — | — | — | — | — | |||||
Financial assets measured at amortised cost | 981,331 | 980,733 | 598 | 0.1 | 995,482 | |||||
Debt securities | 26,033 | 39,895 | (13,862 | ) | (34.7 | ) | 29,789 | |||
Loans and advances to customers | 895,449 | 883,169 | 12,280 | 1.4 | 906,276 | |||||
Loans and advances to central banks and credit institutions | 59,849 | 57,669 | 2,180 | 3.8 | 59,417 | |||||
Investments in subsidiaries, joint ventures and associates | 8,610 | 7,726 | 884 | 11.4 | 8,772 | |||||
Tangible assets | 34,912 | 33,246 | 1,666 | 5.0 | 35,235 | |||||
Intangible assets | 26,583 | 29,114 | (2,531 | ) | (8.7 | ) | 27,687 | |||
Goodwill | 23,141 | 25,989 | (2,848 | ) | (11.0 | ) | 24,246 | |||
Other intangible assets | 3,442 | 3,125 | 317 | 10.1 | 3,441 | |||||
Other assets | 63,241 | 54,732 | 8,509 | 15.5 | 53,534 | |||||
Total assets | 1,540,359 | 1,506,151 | 34,208 | 2.3 | 1,522,695 | |||||
Liabilities and shareholders' equity | ||||||||||
Financial liabilities held for trading | 100,082 | 67,994 | 32,088 | 47.2 | 77,139 | |||||
Customer deposits | — | — | — | — | — | |||||
Debt securities issued | — | — | — | — | — | |||||
Deposits by central banks and credit institutions | — | — | — | — | — | |||||
Derivatives | 88,121 | 56,509 | 31,612 | 55.9 | 63,016 | |||||
Other | 11,961 | 11,485 | 476 | 4.1 | 14,123 | |||||
Financial liabilities designated at fair value through profit or loss | 67,337 | 74,426 | (7,089 | ) | (9.5 | ) | 60,995 | |||
Customer deposits | 44,638 | 41,063 | 3,575 | 8.7 | 34,917 | |||||
Debt securities issued | 4,287 | 2,709 | 1,578 | 58.3 | 3,758 | |||||
Deposits by central banks and credit institutions | 18,412 | 30,525 | (12,113 | ) | (39.7 | ) | 22,194 | |||
Other | — | 129 | (129 | ) | (100.0 | ) | 126 | |||
Financial liabilities measured at amortised cost | 1,224,749 | 1,211,981 | 12,768 | 1.1 | 1,230,745 | |||||
Customer deposits | 770,821 | 767,298 | 3,523 | 0.5 | 789,448 | |||||
Debt securities issued | 257,606 | 247,552 | 10,054 | 4.1 | 258,219 | |||||
Deposits by central banks and credit institutions | 170,275 | 165,811 | 4,464 | 2.7 | 152,969 | |||||
Other | 26,047 | 31,320 | (5,273 | ) | (16.8 | ) | 30,109 | |||
Liabilities under insurance contracts | 2,280 | 751 | 1,529 | 203.6 | 739 | |||||
Provisions | 12,335 | 13,449 | (1,114 | ) | (8.3 | ) | 13,987 | |||
Other liabilities | 27,463 | 27,185 | 278 | 1.0 | 28,431 | |||||
Total liabilities | 1,434,246 | 1,395,786 | 38,460 | 2.8 | 1,412,036 | |||||
Shareholders' equity | 124,139 | 121,866 | 2,273 | 1.9 | 124,239 | |||||
Capital stock | 8,309 | 8,118 | 191 | 2.4 | 8,309 | |||||
Reserves | 117,161 | 114,145 | 3,016 | 2.6 | 111,077 | |||||
Attributable profit to the Group | 331 | 1,840 | (1,509 | ) | (82.0 | ) | 6,515 | |||
Less: dividends | (1,662 | ) | (2,237 | ) | 575 | (25.7 | ) | (1,662 | ) | |
Other comprehensive income | (27,761 | ) | (23,021 | ) | (4,740 | ) | 20.6 | (24,168 | ) | |
Minority interests | 9,735 | 11,520 | (1,785 | ) | (15.5 | ) | 10,588 | |||
Total equity | 106,113 | 110,365 | (4,252 | ) | (3.9 | ) | 110,659 | |||
Total liabilities and equity | 1,540,359 | 1,506,151 | 34,208 | 2.3 | 1,522,695 |
18 | January - March 2020 |
Response to the COVID-19 crisis Business model | ||||||||
Balance sheet |
• | Strong negative exchange rate impact, both in the quarter (-5 pp) and year-on-year (-6 pp). |
• | Excluding this impact, the following movements were recorded in the quarter, partially affected by the impacts derived from the COVID-19 crisis at the end of March: |
– | Gross loans and advances to customers excluding reverse repos rose 3% driven by the increase in new lending and credit lines granted in the corporate segment, which offset the reduced activity of individuals. |
– | Customer funds increased 1% reflecting two different factors. On one hand, deposits excluding repos rose 3% while, on the other hand, mutual funds were 10% lower, predominantly driven by the impact of markets. |
• | Compared to March 2019: |
– | Gross loans and advances to customers excluding reverse repos rose 7% year-on-year in constant euros with nine of the 10 core markets growing particularly in South America (+16%) and North America (+13%). |
– | Customer funds increased 4% in constant euros, driven by deposits excluding repos, which rose 6%. Growth in nine of our 10 core markets. |
• | In the quarter, gross loans and advances to customers excluding reverse repos and the exchange rate impact increased 3%, particularly in March, derived from the impact of the health crisis in activity and the need for funding of the different segments, which varies across countries depending on the expansion of the pandemic. This was reflected in a strong growth in loans to legal entities and institutions in all countries and in the stagnation or reduction of the lending activity of individuals, particularly in Europe. |
Gross loans and advances to customers (Excl. reverse repos) | |
EUR billion |
+1% * |
Mar-20 / Mar-19 |
Gross loans and advances to customers (Excl. reverse repos) | |
% operating areas. March 2020 |
January - March 2020 | 19 |
Response to the COVID-19 crisis Business model | ||||||||
Balance sheet |
• | In the first quarter, customer funds were 1% higher excluding exchange rate impacts and, as in loans, growth was mainly produced in March: |
• | Compared to March 2019, customer funds, excluding the exchange rate impact, increased 4%, as follows: |
Customer funds | |
EUR billion |
-1% * |
-12% |
+1% |
l Total |
l Mutual funds |
l Deposits excl. repos |
Mar-20 / Mar-19 |
• | The net loan-to-deposit ratio was 115% (113% in March 2019). The ratio of deposits plus medium- and long-term funding to the Group’s loans was 112%, underscoring the comfortable funding structure. |
Customer funds | |
% operating areas. March 2020 |
20 | January - March 2020 |
• | At the end of the quarter, the CET1 ratio reached 11.58%. The organic generation and the measures adopted in dividends led to an increase of 36 bps, offset by corporate transactions, regulatory impacts and markets. |
• | Tangible equity per share was EUR 4.21. Including the dividend recorded in the last 12 months, it was EUR 4.37, 1.8% higher year-on-year. |
• | The fully loaded leverage ratio remained broadly stable at 5.04% in the quarter. |
Eligible capital. Eligible capital. December 2019* | ||||
EUR million | ||||
Phased-in | Fully loaded | |||
CET1 | 68,414 | 68,414 | ||
Basic capital | 77,741 | 77,173 | ||
Eligible capital | 89,196 | 89,097 | ||
Risk-weighted assets | 590,952 | 590,952 | ||
CET1 capital ratio | 11.58 | 11.58 | ||
T1 capital ratio | 13.16 | 13.06 | ||
Total capital ratio | 15.09 | 15.08 |
Fully-loaded capital ratio* |
% |
CET1 evolution* |
% |
January - March 2020 | 21 |
• | The effects related to the COVID-19 situation had not yet materialised in the risk indicators of the first quarter, which reflect the credit quality improvements observed in the first three months of the year. |
• | The NPL ratio stood at 3.25% as of the end of March which is lower on both a quarterly and an annual basis, while cost of credit remained at 1%. Coverage increased 3 pp to 71%. |
• | Our market risk exposure in this first quarter, remained at low levels, in spite of the recent uncertainty and volatility that is now prevailing in the current context. These exceptional circumstances that the markets have been going through since the final weeks of March did not have a material impact on Santander’s portfolio. |
• | The operational risk profile remained stable, with a similar distribution of losses by category, despite the aforementioned observed volatility and uncertainty. |
• | Assessment of all risk factors and identification of areas of focus. |
• | Potential impact analysis in all units where the Group operates, through continuous monitoring and scenario analysis. |
• | Analysis and implementation of the different economic mitigating measures adopted by governments and central banks as well as those designed internally by the Bank. |
Credit risk | ||||||||
EUR million | ||||||||
Mar-20 | Mar-19 | Chg (%) | Dec-19 | |||||
Non-performing loans | 32,743 | 35,590 | (8.0 | ) | 33,799 | |||
NPL ratio (%) | 3.25 | 3.62 | 3.32 | |||||
Loan-loss allowances | 23,361 | 24,129 | (3.2 | ) | 22,965 | |||
For impaired assets | 13,364 | 15,100 | (11.5 | ) | 14,093 | |||
For other assets | 9,997 | 9,029 | 10.7 | 8,872 | ||||
Coverage ratio (%) | 71 | 68 | 68 | |||||
Cost of credit (%) | 1.00 | 0.97 | 1.00 |
NPL and coverage ratios. Total Group |
% |
22 | January - March 2020 |
Key metrics geographic performance. Key metrics geographic performance. March 2020 | ||||||||
% | Change (bps) | |||||||
NPL ratio | QoQ | YoY | Coverage ratio | |||||
EUROPE | 3.19 | (6 | ) | (42 | ) | 51 | ||
Spain | 6.88 | (6 | ) | (41 | ) | 42 | ||
Consumer Finance | 2.43 | 13 | 10 | 104 | ||||
United Kingdom | 0.96 | (5 | ) | (21 | ) | 38 | ||
Portugal | 4.56 | (27 | ) | (121 | ) | 55 | ||
Poland | 4.29 | (2 | ) | (10 | ) | 66 | ||
NORTH AMERICA | 2.02 | (18 | ) | (31 | ) | 158 | ||
USA | 2.00 | (20 | ) | (41 | ) | 167 | ||
Mexico | 2.07 | (12 | ) | (5 | ) | 128 | ||
SOUTH AMERICA | 4.63 | (23 | ) | (20 | ) | 86 | ||
Brazil | 4.93 | (39 | ) | (33 | ) | 100 | ||
Chile | 4.63 | (1 | ) | (4 | ) | 54 | ||
Argentina | 3.97 | 58 | 47 | 113 | ||||
GROUP | 3.25 | (7 | ) | (37 | ) | 71 |
Non-performing loans by quarter | ||||||||||
EUR million | ||||||||||
Q1'19 | Q2'19 | Q3'19 | Q4'19 | Q1'20 | ||||||
Balance at beginning of period | 35,692 | 35,590 | 34,421 | 34,326 | 33,799 | |||||
Net additions | 2,147 | 2,511 | 3,190 | 2,696 | 2,543 | |||||
Increase in scope of consolidation | — | — | — | — | — | |||||
Exchange rate differences and other | 479 | (162 | ) | (110 | ) | (51 | ) | (964 | ) | |
Write-offs | (2,728 | ) | (3,518 | ) | (3,175 | ) | (3,172 | ) | (2,635 | ) |
Balance at period-end | 35,590 | 34,421 | 34,326 | 33,799 | 32,743 |
Coverage ratio by stage | |||||||
EUR billion | |||||||
Exposure1 | Coverage | ||||||
Mar-20 | Mar-20 | Mar-19 | |||||
Stage 1 | 891 | 0.6 | % | 0.5 | % | ||
Stage 2 | 53 | 8.2 | % | 9.1 | % | ||
Stage 3 | 33 | 40.8 | % | 42.4 | % |
January - March 2020 | 23 |
Trading portfolios*. VaR performance |
EUR million |
Trading portfolios (1). VaR by geographic region | |||||||
EUR million | |||||||
2020 | 2019 | ||||||
First quarter | Average | Latest | Average | ||||
Total | 15.8 | 20.7 | 13.5 | ||||
Europe | 10.7 | 19.9 | 6.0 | ||||
North America | 5.6 | 11.7 | 2.7 | ||||
South America | 8.0 | 5.8 | 11.3 |
• | With regards to structural exchange rate risk, Santander’s CET1 ratio coverage remained around 100% in order to protect it from foreign currency movements. |
• | In structural interest rate risk, negative performance in the ALCO activity, mainly in Latin America due to the potential negative impact on its economy, which is highly dependent on trade with China. |
• | In liquidity risk during the first quarter, the Group maintained a comfortable position, supported by a robust liquidity buffer, with ratios well above regulatory limits. |
Trading portfolios (1). VaR by market factor | ||||||||
EUR million | ||||||||
First quarter 2020 | Min. | Avg. | Max. | Last | ||||
VaR total | 8.8 | 15.8 | 54.8 | 20.7 | ||||
Diversification effect | (2.0 | ) | (11.2 | ) | (32.7 | ) | (28.3 | ) |
Interest rate VaR | 6.2 | 11.0 | 29.2 | 20.6 | ||||
Equity VaR | 3.0 | 5.4 | 14.7 | 12.9 | ||||
FX VaR | 2.6 | 5.4 | 12.9 | 8.9 | ||||
Credit spreads VaR | 3.1 | 5.1 | 10.3 | 6.4 | ||||
Commodities VaR | — | — | 0.2 | — |
• | The COVID-19 situation has driven the Group to put additional focus on several operational risk aspects, such as: |
– | Business continuity plans to support our employees, customers and overall businesses. |
– | Potential increase of cyber risk due to new conditions in business management and remote working. Our cyber security programme continued to be improved by strengthening detection, response and protection mechanisms. |
– | Increase in technological support in order to ensure adequate customer service and correct performance of our services, especially in online banking and call centres. |
– | Continuous follow up on other risk that could increase such as third party, fraud, data risk or conduct and AML. |
• | In terms of the first quarter performance, levels of losses in relative terms by Basel categories were aligned with the first quarter of 2019, and lower than previous quarter. In addition to the COVID-19 situation, the main risk this quarter was the evolution of ongoing legal and regulatory cases (including legacy cases) and legal claims in Brazil. |
24 | January - March 2020 |
Country | GDP Change1 | Economic performance | |
Eurozone | +1.2% | Confidence indicators plummeted in March, evidencing a sharp contraction in GDP growth. Business surveys expect a decline in employment and increase in unemployment. Inflation fell to 0.8%in March due to lower oil prices. | |
Spain | +2.0% | The quarter began with a similar growth rate to that of Q4'19. However, conditions changed dramatically in March, as the economic halt resulting from confinement measures due to COVID-19 will lead to a fall in GDP growth. Inflation dropped to 0% in March driven by lower oil prices. | |
United Kingdom | +1.4% | The rebound in activity at the beginning of the quarter was truncated by the COVID-19 crisis. Inflation in February (1.7%) reflected the fall in oil prices but not the weakening of activity. The unemployment rate ended the year at 3.8% . The Bank of England cut interest rates to 0.1% to address the crisis. | |
Portugal | +2.2% | The economic standstill in the past weeks will lead to a notable decrease in GDP growth, which had already moderated due to the lower contribution of domestic demand. The jobless rate rose slightly at the end of the year (6.71%) and inflation remained unchanged in March (0.05%). | |
Poland | +4.1% | The economy grew at a good pace in 2019, but Q1'20 will be affected by the COVID-19 crisis. Inflation remained high in March (4.6%), although the central bank cut its key interest rate to 0.5% from1.0%, to handle the impact from the pandemic. The unemployment rate will rise from 2.9% in Q4'19. | |
United States | +2.3% | After economic growth slowed down by 0.6 pp in 2019, conditions for the stabilisation of the economy were met at the start of 2020. But the pandemic, with high potential economic impact, and tighter financial conditions led the Fed to cut rates to 0-0.25% in March. | |
Mexico | -0.1% | The outbreak of COVID-19 raised market volatility and will negatively affect the GDP growth, which was stagnant in 2019. The central bank cut its key interest rate to 6.50% (7.25% in Q4'19) and announced measures to provide liquidity, which will help to ease tensions. Inflation stood at 3.2% in March, in line with the official target. S&P downgraded the sovereign rating (from BBB+ to BBB). | |
Brazil | +1.1% | The gradual recovery of GDP in 2019 is expected to be dampened by the effects of the pandemic and market volatility generated. Inflation remained low (3.3% in March). The central bank cut its benchmark rate to 3.75% (4.50% in Q4'19) and announced liquidity measures to calm market volatility. | |
Chile | +1.1% | GDP was impacted in Q4'19 by the social protests that began in mid-October. Activity recovered in the following months, although future uncertainty remained and increased due to the pandemic. Inflation temporarily rebounded to 3.7% in March. The central bank cut the official rate by 125 bps to 0.5% in March and approved measures to inject liquidity and reduce volatility. | |
Argentina | -2.2% | GDP growth fell 1% in Q4'19 and 2.2% in the year, dampened by consumption and investment. Inflation moderated slightly to 2.5% per month in Q1'20 ( 3.8% in average in Q4'19), due to exchange rate control and price agreements. The main focus was the renegotiation of foreign debt. |
January - March 2020 | 25 |
Response to the COVID-19 crisis Business model | ||||||||
26 | January - March 2020 |
Response to the COVID-19 crisis Business model | ||||||||
As described on the previous page, the results of our business areas presented below are provided on the basis of underlying results only and including the impact of foreign exchange rate fluctuations. However, for a better understanding of the actual changes in the performance of our business areas, we provide and discuss the year-on-year changes to our results excluding such impact. On the other hand, certain figures contained in this report, including financial information, have been subject to rounding to enhance their presentation. Accordingly, in certain instances, the sum of the numbers in a column or a row in tables contained in this report may not conform exactly to the total figure given for that column or row. |
January - March 2020 | 27 |
Response to the COVID-19 crisis Business model | ||||||||
January-March 2020 | ||||||||||||
Main items of the underlying income statement | ||||||||||||
EUR million | ||||||||||||
Primary segments | Net interest income | Net fee income | Total income | Net operating income | Profit before tax | Underlying attributable profit to the parent | ||||||
EUROPE | 3,435 | 1,315 | 4,974 | 2,263 | 1,511 | 974 | ||||||
Spain | 925 | 643 | 1,789 | 844 | 487 | 352 | ||||||
Santander Consumer Finance | 979 | 187 | 1,171 | 656 | 528 | 304 | ||||||
United Kingdom | 898 | 193 | 1,098 | 384 | 260 | 188 | ||||||
Portugal | 202 | 101 | 350 | 199 | 173 | 120 | ||||||
Poland | 296 | 116 | 365 | 193 | 90 | 38 | ||||||
Other | 134 | 74 | 202 | (14 | ) | (27 | ) | (28 | ) | |||
NORTH AMERICA | 2,261 | 461 | 2,936 | 1,712 | 824 | 522 | ||||||
US | 1,462 | 250 | 1,929 | 1,120 | 468 | 273 | ||||||
Mexico | 798 | 211 | 1,007 | 592 | 357 | 249 | ||||||
SOUTH AMERICA | 3,065 | 1,074 | 4,163 | 2,677 | 1,661 | 928 | ||||||
Brazil | 2,270 | 869 | 3,137 | 2,133 | 1,298 | 694 | ||||||
Chile | 448 | 92 | 553 | 322 | 216 | 125 | ||||||
Argentina | 241 | 76 | 318 | 132 | 79 | 59 | ||||||
Other | 106 | 37 | 157 | 91 | 68 | 51 | ||||||
SANTANDER GLOBAL PLATFORM | 31 | 13 | 45 | (26 | ) | (27 | ) | (13 | ) | |||
CORPORATE CENTRE | (304 | ) | (9 | ) | (304 | ) | (389 | ) | (413 | ) | (434 | ) |
TOTAL GROUP | 8,487 | 2,853 | 11,814 | 6,237 | 3,556 | 1,977 | ||||||
Secondary segments | ||||||||||||
RETAIL BANKING | 7,885 | 2,024 | 9,972 | 5,445 | 2,818 | 1,637 | ||||||
CORPORATE & INVESTMENT BANKING | 671 | 404 | 1,300 | 764 | 745 | 491 | ||||||
WEALTH MANAGEMENT & INSURANCE | 132 | 320 | 586 | 342 | 334 | 240 | ||||||
SANTANDER GLOBAL PLATFORM | 103 | 115 | 260 | 74 | 71 | 43 | ||||||
CORPORATE CENTRE | (304 | ) | (9 | ) | (304 | ) | (389 | ) | (413 | ) | (434 | ) |
TOTAL GROUP | 8,487 | 2,853 | 11,814 | 6,237 | 3,556 | 1,977 |
Underlying attributable profit geographic distribution* | Underlying attributable profit Q1'20. Core markets | |
January - March 2020 | EUR million. % change YoY in constant euros | |
(*) As a % of operating areas. Excluding Corporate Centre and Santander Global Platform. |
28 | January - March 2020 |
Response to the COVID-19 crisis Business model | ||||||||
January-March 2019 | ||||||||||||
Main items of the underlying income statement | ||||||||||||
EUR million | ||||||||||||
Primary segments | Net interest income | Net fee income | Total income | Net operating income | Profit before tax | Underlying attributable profit to the parent | ||||||
EUROPE | 3,561 | 1,327 | 5,225 | 2,423 | 1,768 | 1,163 | ||||||
Spain | 1,009 | 623 | 1,857 | 832 | 478 | 356 | ||||||
Santander Consumer Finance | 941 | 214 | 1,167 | 659 | 561 | 324 | ||||||
United Kingdom | 975 | 216 | 1,206 | 467 | 357 | 254 | ||||||
Portugal | 216 | 98 | 357 | 200 | 193 | 135 | ||||||
Poland | 281 | 113 | 377 | 204 | 127 | 61 | ||||||
Other | 139 | 62 | 261 | 61 | 52 | 32 | ||||||
NORTH AMERICA | 2,173 | 439 | 2,753 | 1,581 | 713 | 386 | ||||||
US | 1,407 | 234 | 1,815 | 1,039 | 370 | 181 | ||||||
Mexico | 766 | 204 | 939 | 542 | 343 | 205 | ||||||
SOUTH AMERICA | 3,222 | 1,178 | 4,487 | 2,842 | 1,785 | 926 | ||||||
Brazil | 2,459 | 931 | 3,411 | 2,286 | 1,409 | 721 | ||||||
Chile | 440 | 103 | 600 | 344 | 279 | 148 | ||||||
Argentina | 213 | 116 | 331 | 129 | 34 | 10 | ||||||
Other | 109 | 29 | 146 | 83 | 63 | 47 | ||||||
SANTANDER GLOBAL PLATFORM | 22 | 2 | 19 | (22 | ) | (23 | ) | (11 | ) | |||
CORPORATE CENTRE | (296 | ) | (14 | ) | (399 | ) | (497 | ) | (559 | ) | (517 | ) |
TOTAL GROUP | 8,682 | 2,931 | 12,085 | 6,327 | 3,684 | 1,948 | ||||||
Secondary segments | ||||||||||||
RETAIL BANKING | 8,083 | 2,178 | 10,412 | 5,718 | 3,184 | 1,763 | ||||||
CORPORATE & INVESTMENT BANKING | 654 | 352 | 1,278 | 717 | 686 | 441 | ||||||
WEALTH MANAGEMENT & INSURANCE | 141 | 273 | 523 | 282 | 285 | 208 | ||||||
SANTANDER GLOBAL PLATFORM | 100 | 142 | 271 | 107 | 88 | 52 | ||||||
CORPORATE CENTRE | (296 | ) | (14 | ) | (399 | ) | (497 | ) | (559 | ) | (517 | ) |
TOTAL GROUP | 8,682 | 2,931 | 12,085 | 6,327 | 3,684 | 1,948 |
January - March 2020 | 29 |
EUROPE | |
Highlights (changes in constant euros) • Given the current macroeconomic environment, characterised by lower for longer interest rates, we are working on our franchises to simplify our business model and structures and adapt our technology platforms. • In an environment of high uncertainty generated by the COVID-19 health crisis, loans grew 4%, mainly in SMEs and large corporates, which partially offset the falls in new lending in the consumer and individual segments. • Underlying attributable profit amounted to EUR 974 million, down 16% compared to 2019, due to lower customer revenue and higher provisions (partly due to portfolio sales in SCF in Q1'19). Costs improved 3%, with good performance in all markets, reflecting the optimisation measures. | |
EUR 974 Mn | |
Underlying attributable profit |
• | Integration of the different technological platforms and acceleration of the digital transformation process, improving customer experience and expanding distribution channels for our products and services. |
• | Simplification of our business, reducing the number of products to gain efficiency and agility but maintaining a full value proposition that is capable of meeting the daily needs of our individual customers and offering tailored solutions for SMEs and large corporates. |
• | In an environment of high uncertainty derived from the health crisis, total income dropped 5%. Net interest income was 4% lower, impacted by Spain (smaller ALCO portfolio, average volumes and rates) and the UK (competitive pressure and SVR attrition). Net fee income fell slightly (-1%) whilst gains on financial transactions declined 24%, adversely impacted by CIB. Lastly, decreases in other operating income (-46%) due to lower income from real estate stakes in Spain and higher BFG contribution in Poland. |
• | Costs decreased 3% (-5% in real terms) because of the efficiencies generated and the optimisation processes, mainly in Spain and the UK. |
• | Provisions rose 22%, primarily from higher portfolio sales in SCF in the first quarter of 2019. |
Customers | ||||||
March 2020. Thousands | ||||||
Loyal customers | Digital customers | |||||
9,851 | 14,227 | |||||
36 | % | /active customers | +6 | % | YoY |
Activity | ||||||||||
March 2020. EUR billion and % change in constant euros | ||||||||||
+3% | -2% | |||||||||
QoQ | QoQ | |||||||||
653 | 644 | |||||||||
+4% | 0% | |||||||||
YoY | YoY | |||||||||
Gross loans and advances to customers excl. reverse repos | Customer deposits excl. repos + mutual funds |
Underlying income statement | |||||||
EUR million and % change in constant euros | |||||||
Q1'20 | / Q4'19 | / Q1'19 | |||||
Revenue | 4,974 | -6 | % | -5 | % | ||
Expenses | -2,712 | -1 | % | -3 | % | ||
LLPs | -556 | +12 | % | +22 | % | ||
PBT | 1,511 | -18 | % | -15 | % | ||
Underlying attrib. profit | 974 | -21 | % | -16 | % |
30 | January - March 2020 |
SPAIN | ||
Highlights | ||
Given the COVID-19 health crisis, Santander España was the first entity to offer a EUR 20 billion fund to cover SMEs' short-term liquidity needs and launched an ICO-COVID-19 credit line for the tourism and hospitality industry. In addition, other measures were implemented to promote financing for individuals. | ||
• In corporates, focus on loans with ICO guarantee, in which we have already granted EUR 9.6 billion in around 60,000 operations.• Underlying attributable profit in the first quarter was EUR 352 million, 1% lower, as net interest income was impacted by lower average balances and lower ALCO portfolios, which were offset by cost reduction and improved cost of funding (-8 bps compared to Q1'19). | ||
EUR 352 Mn | ||
Underlying attributable profit |
• | Positive commercial dynamism with double-digit production growth up to mid-March in all segments and products, ending the quarter with a 14% year-on-year increase despite the COVID-19 impact. |
• | Residential mortgage activity increased 15% year-on-year, boosted by the launch of the new flexible contracting modules. Subsequently, the priority shifted to the Plan Ayuda a las personas, as a part of the holiday repayment actions for vulnerable customers. |
• | Our digital capabilities enabled us to provide all our services in an environment of fewer open branches and with a record growth in the number of digital customers in the quarter (+139,000) and in the number of accesses to digital channels (99 million in March). |
• | We continue to drive digitalisation, enabling customers to take out support plans and legal repayment holidays digitally and the launch of Financia&Go, the first fully digital invoice financing service for SMEs and self-employed workers on external platforms, fully digital confirming procurement process and car renting though online banking for individuals. |
• | Total income fell 4%, mainly driven by net interest income due to smaller ALCO portfolio and lower stock in wholesale banking. Lower income from real estate stakes were partially offset by higher gains on financial transactions. |
• | Cost reduction efforts were reflected in an 8% decrease year-on-year, delivering on our efficiency plan. |
• | Controlled loan-loss provisions. The NPL ratio fell 41 bps year-on-year to 6.88%. |
Customers | ||||||
March 2020. Thousands | ||||||
Loyal customers | Digital customers | |||||
2,535 | 4,860 | |||||
32 | % | /active customers | +6 | % | YoY |
Activity | ||||||||||
March 2020. EUR billion and % change | ||||||||||
-5% | ||||||||||
+1% | QoQ | |||||||||
QoQ | ||||||||||
192 | 294 | |||||||||
-4% | -4% | |||||||||
YoY | YoY | |||||||||
Gross loans and advances to customers excl. reverse repos | Customer deposits excl. repos + mutual funds |
Underlying income statement | |||||||
EUR million and % change | |||||||
Q1'20 | / Q4'19 | / Q1'19 | |||||
Revenue | 1,789 | -1 | % | -4 | % | ||
Expenses | -944 | -3 | % | -8 | % | ||
LLPs | -253 | +44 | % | +5 | % | ||
PBT | 487 | -13 | % | +2 | % | ||
Underlying attrib. profit | 352 | -12 | % | -1 | % |
January - March 2020 | 31 |
SANTANDER CONSUMER FINANCE | ||
Highlights (changes in constant euros) | ||
All our units have taken measures to protect employees during the COVID-19 crisis. We are adapting to this new situation with a proactive management, to ensure the continuity of our service in branches and call centres and to continue to assist and support customers, dealers and providers affected by the health crisis. | ||
• The crisis has significantly impacted the consumer business in the quarter, particularly in Italy and Spain, which was reflected in the 5% fall in new lending year-on-year.• Underlying attributable profit of EUR 304 million, 5% lower year-on-year. The positive performance of total income (net interest income) was offset by higher costs (perimeter) and provisions (lower portfolio sales). | ||
EUR 304 Mn | ||
Underlying attributable profit |
• | Growth in net interest income (+5% driven by increased volumes) was partially mitigated by fees (European Court of Justice judgement regarding refunding fees to customers who repay loans early). |
• | Costs increased 2% mainly due to perimeter. Excluding this impact, they fell EUR 17 million (-3%) benefiting from the efficiency projects carried out in several units. |
• | Cost of credit remained low for this type of business (0.52%). The 14 bps increase year-on-year was due to portfolio sales and some positive one-offs in the previous year (excluding these impacts the cost of credit would be similar). The NPL ratio stood at 2.43%, 10 bps higher compared to March 2019. |
• | The largest contribution to the underlying attributable profit came from Germany (EUR 84 million), the Nordic countries (EUR 55 million) and Spain (EUR 43 million). |
Customer loan distribution | |
March 2020 |
n | Germany |
n | Spain |
n | Italy |
n | France |
n | Nordic countries |
n | Poland |
n | Other |
Activity | ||||||||||
March 2020. EUR billion and % change in constant euros | ||||||||||
0% | ||||||||||
QoQ | -10% | |||||||||
103 | QoQ | |||||||||
+7% | -5% | |||||||||
YoY | 10 | YoY | ||||||||
Gross loans and advances to customers excl. reverse repos | New lending |
Underlying income statement | |||||||
EUR million and % change in constant euros | |||||||
Q1'20 | / Q4'19 | / Q1'19 | |||||
Revenue | 1,171 | -1 | % | +1 | % | ||
Expenses | -514 | +3 | % | +2 | % | ||
LLPs | -172 | +18 | % | +44 | % | ||
PBT | 528 | +5 | % | -5 | % | ||
Underlying attrib. profit | 304 | -4 | % | -5 | % |
32 | January - March 2020 |
UNITED KINGDOM | ||
Highlights (changes in constant euros) | ||
In response to the COVID-19 crisis, we are focused on supporting individuals and businesses. We introduced payment holidays for mortgages and on credit cards and loans, while delivering tailored solutions to business and corporate customers. With our strong foundations, including capital and liquidity, we believe we will continue to be able to support our people, customers and communities. | ||
• Business activity remained solid in the quarter, with growth in mortgages, increased digital customers and a loyalty ratio of nearly 32% as we continue to focus on improving customer experience and strengthen our franchise.• Underlying attributable profit was 27% lower than the first three months of 2019, reflecting the ongoing mortgage margin pressure and SVR attrition. | ||
EUR 188 Mn | ||
Underlying attributable profit |
• | Total revenue 10% lower due to competitive pressures and SVR attrition and net fee income reduction in part driven by overdrafts. |
• | Costs reduced 5%, reflecting lower staff costs and efficiency savings from our 2019 transformation actions. |
• | Loan-loss provisions fell 20%, the cost of credit remained at very low levels (9 basis points) and the NPL ratio decreased to 0.96%, supported by prudent approach to risk management. |
Customers | ||||||
March 2020. Thousands | ||||||
Loyal customers | Digital customers | |||||
4,543 | 5,962 | |||||
32 | % | /active customers | +6 | % | YoY |
Activity | ||||||||||
March 2020. EUR billion and % change in constant euros | ||||||||||
+2% | 0% | |||||||||
QoQ | QoQ | |||||||||
244 | 210 | |||||||||
+5% | +4% | |||||||||
YoY | YoY | |||||||||
Gross loans and advances to customers excl. reverse repos | Customer deposits excl. repos + mutual funds |
Underlying income statement | |||||||
EUR million and % change in constant euros | |||||||
Q1'20 | / Q4'19 | / Q1'19 | |||||
Revenue | 1,098 | -10 | % | -10 | % | ||
Expenses | -714 | 0 | % | -5 | % | ||
LLPs | -49 | -49 | % | -20 | % | ||
PBT | 260 | -24 | % | -28 | % | ||
Underlying attrib. profit | 188 | -24 | % | -27 | % |
January - March 2020 | 33 |
PORTUGAL | ||
Highlights | ||
In the environment deriving from the COVID-19 pandemic, the Bank is focusing on supporting society and the economy, with measures to mitigate the effects on households and businesses, especially in terms of liquidity. | ||
• Loans rose 2% year-on-year, benefiting from the increase recorded in the quarter.• Underlying attributable profit decreased 11% year-on-year due to net interest income and the recovery of provisions in the first quarter of 2019. Net operating income remained flat. | ||
EUR 120 Mn | ||
Underlying attributable profit |
• | Some of the specific measures adopted to support our customers are: temporary suspension of fees for payment methods, a six-month repayment holiday on loans to individuals, households and businesses, and a rapid participation in credit lines set up by the government to support businesses. |
• | The digital transformation carried out in recent years has enabled the teams to work remotely and to maintain business continuity and the smooth running of the Bank. |
• | Net interest income fell 6% dampened by lower average interest rates. This fall was offset by the increase in net fee income (+3%), higher ALCO portfolio sales and cost reduction (-4%), which enabled the efficiency ratio to improve to 43.1% and total income to remain stable. |
• | Profit fell adversely impacted by loan-loss provisions, as recoveries from a specific customer were recorded in the first quarter of 2019. The NPL ratio improved to 4.56% and the cost of credit stood at around 0%. |
Customers | ||||||
March 2020. Thousands | ||||||
Loyal customers | Digital customers | |||||
782 | 797 | |||||
46 | % | /active customers | +5 | % | YoY |
Activity | ||||||||||
March 2020. EUR billion and % change | ||||||||||
-2% | ||||||||||
+3% | QoQ | |||||||||
QoQ | ||||||||||
37 | 42 | |||||||||
+2% | +3% | |||||||||
YoY | YoY | |||||||||
Gross loans and advances to customers excl. reverse repos | Customer deposits excl. repos + mutual funds |
Underlying income statement | |||||||
EUR million and % change | |||||||
Q1'20 | / Q4'19 | / Q1'19 | |||||
Revenue | 350 | +6 | % | -2 | % | ||
Expenses | -151 | -3 | % | -4 | % | ||
LLPs | -5 | +31 | — | ||||
PBT | 173 | -10 | % | -11 | % | ||
Underlying attrib. profit | 120 | -14 | % | -11 | % |
34 | January - March 2020 |
POLAND | ||
Highlights (changes in constant euros) | ||
In the last three weeks of March, and regarding the emergency situation derived from the COVID-19 outbreak, the Bank took several actions to protect customers and employees, both regarding health and business. The suspension of capital repayments for cash loans, mortgages and SME loans was announced and implemented on 19 March. Other examples include temporary free of charge withdrawals from other ATM networks. | ||
• The Bank’s strategy to be the bank of first choice continues, predicting and responding to customer expectations. In addition, Santander Bank Polska was awarded 5 stars for Santander Private Banking in the prestigious Forbes ranking.• In the first three months, underlying attributable profit was EUR 38 million, 38% less than in the same period of 2019, impacted by the greater BFG and Banking Tax contributions and provisions related to regulatory changes. | ||
EUR 38 Mn | ||
Underlying attributable profit |
• | Total income fell 3%. Net interest income up 6% year-on-year, mainly due to the adjustment of the cost of deposits and by the changes in the loan mix towards more profitable products, partially offset by a change in regulations regarding earlier repayments of consumer loans. Net fee income was 3% higher driven by SCIB. These increases were offset by lower gains on financial transactions due to the fall in markets and the higher BFG contribution. |
• | Costs remained virtually unchanged, and the efficiency ratio stood at 47.1%. |
• | Loan-loss provisions increased 57% year-on-year, mainly due higher charges in the retail and a single name in CIB. |
• | Other income was affected by the higher Banking Tax contribution and regulatory changes regarding consumer loans. |
Customers | ||||||
March 2020. Thousands | ||||||
Loyal customers | Digital customers | |||||
1,992 | 2,607 | |||||
52 | % | /active customers | +9 | % | YoY |
Activity | ||||||||||
March 2020. EUR billion and % change in constant euros | ||||||||||
+4% | -2% | |||||||||
QoQ | QoQ | |||||||||
30 | 35 | |||||||||
+9% | +4% | |||||||||
YoY | YoY | |||||||||
Gross loans and advances to customers excl. reverse repos | Customer deposits excl. repos + mutual funds |
Underlying income statement | |||||||
EUR million and % change in constant euros | |||||||
Q1'20 | / Q4'19 | / Q1'19 | |||||
Revenue | 365 | -20 | % | -3 | % | ||
Expenses | -172 | +2 | % | 0 | % | ||
LLPs | -68 | +35 | % | +57 | % | ||
PBT | 90 | -56 | % | -29 | % | ||
Underlying attrib. profit | 38 | -63 | % | -38 | % |
January - March 2020 | 35 |
NORTH AMERICA | |
Highlights (changes in constant euros) • In North America, the US and Mexico are managed according to their local strategic priorities, while increasing coordination and cooperation between the two units.• In volumes, there was strong year-on-year volume growth, both in gross loans and advances to customers and in customer funds (double-digit growth).• In results, underlying attributable profit increased 34% year-on-year, driven mainly by customer revenue, improved efficiency and reduced non-controlling interests. | |
EUR 522 Mn | |
Underlying attributable profit |
• | Continued development of the USMX trade corridor. SCIB and Commercial Banking are working to deepen relationships with existing clients and increase client acquisition in both countries, which is reflected in corridor revenue growth (SCIB: +38%; Commercial: +23%). |
• | Commission-free same-day remittance service from Santander US branches to any bank in Mexico. At the same time, ongoing development of other payment alternatives for the USMX trade corridor, such as PagoFX. |
• | Joint technology programmes between the two countries. |
• | Positive total income performance in both markets, with rises in net interest income (+2%) and net fee income (+4%). |
• | Costs grew at a slower pace than income, enabling the efficiency ratio to improve to 41.7% (89 bp better than in the same period of 2019). Cost control in the US (-1% in real terms) and year-on-year increase in Mexico, although stable compared to previous quarters. |
• | Loan-loss provisions rose 6% driven mainly by higher volumes. The NPL ratio improved to 2.02%, coverage rose to 158% and the cost of credit improved to 2.75%. |
Customers | ||||||
March 2020. Thousands | ||||||
Loyal customers | Digital customers | |||||
3,628 | 5,467 | |||||
32 | % | /active customers | +30 | % | YoY |
Activity | ||||||||||
March 2020. EUR billion and % change in constant euros | ||||||||||
+4% | ||||||||||
QoQ | +12% | |||||||||
QoQ | ||||||||||
132 | 120 | |||||||||
+13% | +15% | |||||||||
YoY | YoY | |||||||||
Gross loans and advances to customers excl. reverse repos | Customer deposits excl. repos + mutual funds |
Underlying income statement | |||||||
EUR million and % change in constant euros | |||||||
Q1'20 | / Q4'19 | / Q1'19 | |||||
Revenue | 2,936 | 0 | % | +5 | % | ||
Expenses | -1,224 | -6 | % | +2 | % | ||
LLPs | -874 | -17 | % | +6 | % | ||
PBT | 824 | +52 | % | +14 | % | ||
Underlying attrib. profit | 522 | +37 | % | +34 | % |
36 | January - March 2020 |
UNITED STATES | ||
Highlights (changes in constant euros) | ||
We have implemented specific measures to continue to support our stakeholders throughout the COVID-19 pandemic, such as: temporary payment and mortgage and home equity line of credit foreclosures suspension at the retail network, USD 25 million in loans to Community Development Financial Institutions for small business loans, additional paid leave and pay premiums for certain employees. SC USA expanded payment deferrals, waived late charges and easing extensions for lessees unable to return their vehicles. | ||
• In volumes, the improved year-on-year trend in gross loans and advances to customers excluding reverse repos continues to drive higher revenue to help offset the impact of rate decreases. • Underlying attributable profit increased 46% compared to the same period of 2019, driven by higher revenues and lower provisions. | ||
EUR 273 Mn | ||
Underlying attributable profit |
• | Total revenue up 3% due to higher loan and leasing volumes, increased net fee income and positive gains on financial transactions performance, which offset lower interest rates. |
• | Controlled costs, with efficiency ratio improvement to 41.9%. |
• | Loan-loss provisions increased 3%, well below balance growth, improving the cost of credit to 2.81% and the NPL ratio to 2.00%. |
Customers | ||||||
March 2020. Thousands | ||||||
Loyal customers | Digital customers | |||||
328 | 1,019 | |||||
19 | % | /active customers | +6 | % | YoY |
Activity | ||||||||||
March 2020. EUR billion and % change in constant euros | ||||||||||
+3% | ||||||||||
QoQ | +10% | |||||||||
QoQ | ||||||||||
101 | 82 | |||||||||
+12% | +18% | |||||||||
YoY | YoY | |||||||||
Gross loans and advances to customers excl. reverse repos | Customer deposits excl. repos + mutual funds |
Underlying income statement | |||||||
EUR million and % change in constant euros | |||||||
Q1'20 | / Q4'19 | / Q1'19 | |||||
Revenue | 1,929 | +1 | % | +3 | % | ||
Expenses | -809 | -7 | % | 1 | % | ||
LLPs | -646 | -22 | % | +3 | % | ||
PBT | 468 | +199 | % | +23 | % | ||
Underlying attrib. profit | 273 | +181 | % | +46 | % |
January - March 2020 | 37 |
MEXICO | ||
Highlights (changes in constant euros) | ||
In response to the spread of COVID-19, we have laid out support measures for our customers, such as repayment holiday on loans, credit cards and mortgages, interest-free financing for online supermarket purchases and in pharmacies, laboratories and hospitals. In addition, branch services maintained, although with minimum staffing. Our digital channels and contact centres continue to operate normally. | ||
• Gross loans and advances to customers (excluding reverse repos) increased 13% year-on-year, particularly corporates, CIB and mortgages and customer funds rose 10%, both driven by the strong growth in March due to greater liquidity demand from our customers given the current situation.• Underlying attributable profit rose 22% year-on-year, backed by the sound performance of total income and reduced non-controlling interests, following the increased stake in the second half of 2019. | ||
EUR 249 Mn | ||
Underlying attributable profit |
• | We continued to develop our distribution model with the transformation of 560 branches and 1,138 full function ATMs. |
• | Santander Plus reached 6.8 million customers (52% new). |
• | Launch of the first numberless credit card, becoming the first bank in Mexico to offer this card model, without revealing sensitive data and providing greater security to our customers. |
• | We also began to register customers’ biometric data to make their transactions more secure, by facial and fingerprint scanning. |
• | Alliance with Mazda to become its main partner in auto financing, progressing towards the consolidation in this segment. |
• | We continued to boost customer deposits with the launch of the new version of the Arma tu Kit campaign, which continues to reward customers who increase their balances and use digital banking. |
• | These measures resulted in a strong year-on-year increase in the number of loyal and digital customers (24% and 38% respectively). |
• | Net interest income rose 5%, underpinned by higher volumes . Net fee income grew 4% mainly from financial advisory services and restructuring, transactional banking and cards. Gains on financial transactions increased benefiting from the weak markets activity in the first quarter of 2019. |
• | Operating expenses were up due to increased amortisations and higher technology investments. |
• | Loan-loss provisions surged 18% compared to the first quarter of 2019, which was affected by a mortgage portfolio sale. Good credit quality in all metrics. |
Customers | ||||||
March 2020. Thousands | ||||||
Loyal customers | Digital customers | |||||
3,300 | 4,448 | |||||
34 | % | /active customers | +38 | % | YoY |
Activity | ||||||||||
March 2020. EUR billion and % change in constant euros | ||||||||||
+14% | ||||||||||
+9% | QoQ | |||||||||
QoQ | ||||||||||
31 | 38 | |||||||||
+13% | +10% | |||||||||
YoY | YoY | |||||||||
Gross loans and advances to customers excl. reverse repos | Customer deposits excl. repos + mutual funds |
Underlying income statement | |||||||
EUR million and % change in constant euros | |||||||
Q1'20 | / Q4'19 | / Q1'19 | |||||
Revenue | 1,007 | -2 | % | +8 | % | ||
Expenses | -415 | -4 | % | +5 | % | ||
LLPs | -228 | +6 | % | +18 | % | ||
PBT | 357 | -7 | % | +4 | % | ||
Underlying attrib. profit | 249 | -12 | % | +22 | % |
38 | January - March 2020 |
SOUTH AMERICA | |
Highlights (changes in constant euros) • The banks in the different countries have implemented contingency plans for the COVID-19 crisis. They continue to operate and meet the demands and needs of our customers, with different products and services to help them financially.• The focus remained on the integration of the region, through a wide range of products and services, with a strategy oriented to deliver profitable growth, improve customer satisfaction and loyalty as well as risk control.• We continued to capture business opportunities, exchanging positive experiences across countries, for example in payment methods, consumer finance and microfinance.• Underlying attributable profit increased by 15% year-on-year backed by net interest income, net fee income and improved efficiency. RoTE of 21.1%. | |
EUR 928 Mn | |
Underlying attributable profit |
• | In auto financing, we are exporting our experience in Brazil, which maintained its leadership in the country, expanding its business model to other countries. In Peru, for example, we increased our presence in this type of business, while increasing business profitability in Colombia through our digital proposition and strategic alliances. |
• | In terms of financing goods and services, Uruguay continued to lead the local market, increasing its market share and business activity. Colombia, in turn, continued to diversify its business alliances. We also exported the model, successfully in Uruguay and Brazil, to other countries. |
• | Prospera, our micro-credit programme to satisfy the demand for small businesses in Brazil, continued expand in Uruguay as well. |
• | In payment methods, we focused on e-commerce strategies and instant transfers. We are rolling out Getnet, our acquiring business in Brazil, and plan to further expand it to the rest of Latin America. As regards Superdigital, it is already showing positive results in Chile, attracting customers for its transactionality and digital platform. |
• | We remained focused on enhancing our products and services digitally. Sales through digital channels already account for a high percentage of the total in Brazil and Argentina, and continued to grow in Chile. |
• | Total income increased 8%, underpinned by the sound performance of net interest income (+11%) and net fee income (+7%). |
• | Costs rose 7%, at a slower pace than income, enabling efficiency to improve 97 bps to 35.7%. |
• | Provisions increased 13% driven by the rises in Brazil and Chile, partially offset by the decrease in Argentina. In credit quality, the NPL ratio improved 20 bps to 4.63%, coverage was 86% and cost of credit of 2.94%. |
Customers | ||||||
March 2020. Thousands | ||||||
Loyal customers | Digital customers | |||||
7,756 | 17,762 | |||||
25 | % | /active customers | +12 | % | YoY |
Activity | ||||||||||
March 2020. EUR billion and % change in constant euros | ||||||||||
+5% | ||||||||||
+7% | QoQ | |||||||||
QoQ | ||||||||||
118 | 148 | |||||||||
+16% | +16% | |||||||||
YoY | YoY | |||||||||
Gross loans and advances to customers excl. reverse repos | Customer deposits excl. repos + mutual funds |
Underlying income statement | |||||||
EUR million and % change in constant euros | |||||||
Q1'20 | / Q4'19 | / Q1'19 | |||||
Revenue | 4,163 | -7 | % | +8 | % | ||
Expenses | -1,486 | -12 | % | +7 | % | ||
LLPs | -875 | -8 | % | +13 | % | ||
PBT | 1,661 | +4 | % | +7 | % | ||
Underlying attrib. profit | 928 | +4 | % | +15 | % |
January - March 2020 | 39 |
BRAZIL | ||
Highlights (changes in constant euros) | ||
In response to the expansion of COVID-19, we have launched a series of initiatives to guarantee the health of our employees (between 50-80% of the workforce are telecommuting, bringing forward the additional salary payment from November to April, closure of some branches...) and the service to our customers (adapted opening hours, anticipation of liquidity, greater digital support...) and to society (volunteer programme, donations from the bank and employees...). | ||
• We continued with our sustainable growth strategy focused on customer service, capturing business opportunities in the market in an innovative way and the relentless search for operational excellence, committed to our people, customers, communities and shareholders.• Underlying attributable profit was 10% higher year-on-year, with improved efficiency and reflecting recurrence in profit generation, even in the current worsened environment. RoTE of 22.0%. | ||
EUR 694 Mn | ||
Underlying attributable profit |
• | We continued to expand to strategic regions in the country through products such as Agribusiness and Prospera Microfinance. We ended the quarter with 36 specialised Agro shops. |
• | In mortgages, we offered financing at a term of more than 30 years. In addition, we continued to drive Usecasa, a product that offers a personal loan using property as collateral. |
• | In acquiring, our strategy is to grow while maintaining profitability. This quarter we delivered a solid increase in the active customer base. We also installed new POS terminals and reached 1.4 million. In cards, we increased credit limit by 10% and we launched a new card together with a leading Latin American travel company. |
• | We also launched Consignado Folha, a credit line to finance SMEs payrolls with a grace period of 60 days. |
• | Santander Brasil was awarded the ECO Prize by Amcham Brasil and the Estadão newspaper, which recognised the Bank's responsible work with Prospera Santander Microfinanzas. |
• | Total income rose 5% boosted by net interest income (+6% driven by larger volumes which offset margin pressures due to mix effect) and net fee income (+7%), led largely by cards. |
• | Operating expenses increased 2%, well below revenue growth, which enabled the efficiency ratio to improve by 98 bps to 32.0%. |
• | Net loan-loss provisions increased 14%, below loan growth, maintaining high levels of credit quality: the cost of credit was 3.93%, the NPL ratio improved to 4.93% and the coverage ratio stood at 100%. |
Customers | ||||||
March 2020. Thousands | ||||||
Loyal customers | Digital customers | |||||
5,673 | 13,828 | |||||
22 | % | /active customers | +13 | % | YoY |
Activity | ||||||||||
March 2020. EUR billion and % change in constant euros | ||||||||||
+2% | ||||||||||
+9% | QoQ | |||||||||
QoQ | ||||||||||
69 | 98 | |||||||||
+18% | +12% | |||||||||
YoY | YoY | |||||||||
Gross loans and advances to customers excl. reverse repos | Customer deposits excl. repos + mutual funds |
Underlying income statement | |||||||
EUR million and % change in constant euros | |||||||
Q1'20 | / Q4'19 | / Q1'19 | |||||
Revenue | 3,137 | -5 | % | +5 | % | ||
Expenses | -1,004 | -13 | % | +2 | % | ||
LLPs | -709 | -6 | % | +14 | % | ||
PBT | 1,298 | +6 | % | +5 | % | ||
Underlying attrib. profit | 694 | +8 | % | +10 | % |
40 | January - March 2020 |
CHILE | ||
Highlights (changes in constant euros) | ||
In response to the spread of COVID-19, Santander Chile carried out various measures to ensure the welfare of customers and employees. In the first case, the Bank designed a plan to benefit more than 500,000 customers, providing support to the consumer, mortgage, SME and business portfolios of around USD 6 billion. In the second case, around 7,100 employees are telecommuting (65% of total workforce). | ||
• Gross loans and advances to customers (excluding reverse repos) increased, with a positive performance in the past month mainly due to corporates. Demand deposits rose 30% year-on-year and growth in account openings hit a record high in March.• Underlying attributable profit decreased 2% year-on-year, due to lower gains on financial transactions and increased provisions (greater ALCO portfolio sales and releases in Q1'19). | ||
EUR 125 Mn | ||
Underlying attributable profit |
• | We continued to boost the Santander Life programme, which is centred on promoting good credit behaviour and financial education, reaching more than 165,000 customers. |
• | Since its recent launch, Superdigital has exceeded 26,000 customers because of its high transactionality and digital platform. |
• | Gross income increased 8% year-on-year backed by net interest income, benefiting from higher inflation, and the positive performance of net fee income, driven by digital account openings and increased transactionality. |
• | Costs rose 6% impacted by supplier contract adjustments stemming from higher inflation. Efficiency improved 88 bp to 41.7%. |
• | Loan-loss provisions increased 22% due to releases in Q1'19 and, to a lesser extent, driven by the first impacts of the health crisis. The NPL ratio stood below 5% and the cost of credit stood at 1.10% |
Customers | ||||||
March 2020. Thousands | ||||||
Loyal customers | Digital customers | |||||
680 | 1,316 | |||||
44 | % | /active customers | +21 | % | YoY |
Activity | ||||||||||
March 2020. EUR billion and % change in constant euros | ||||||||||
+5% | +7% | |||||||||
QoQ | QoQ | |||||||||
38 | 34 | |||||||||
+8% | +21% | |||||||||
YoY | YoY | |||||||||
Gross loans and advances to customers excl. reverse repos | Customer deposits excl. repos + mutual funds |
Underlying income statement | |||||||
EUR million and % change in constant euros | |||||||
Q1'20 | / Q4'19 | / Q1'19 | |||||
Revenue | 553 | -8 | % | +8 | % | ||
Expenses | -230 | -1 | % | +6 | % | ||
LLPs | -107 | -11 | % | +22 | % | ||
PBT | 216 | -16 | % | -9 | % | ||
Underlying attrib. profit | 125 | -15 | % | -2 | % |
January - March 2020 | 41 |
ARGENTINA | ||
Highlights (changes in constant euros) | ||
In response to the potential risks arising from the spread of COVID-19, we have put contingency plans in place to contribute to the well-being of all: most employees are working remotely, customer operations are being enhanced through digital means and implemented several measures, such as credit lines for SMEs, aimed at working capital in different segments, purchase medical equipment, technology investments to facilitate telecommuting and to pay salaries. | ||
• We continued to focus on four strategic pillars: profitable growth, customer experience, operational excellence and transformation.• Underlying attributable profit reached EUR 59 million boosted by higher net interest income, improved efficiency and lower provisions. | ||
EUR 59 Mn | ||
Underlying attributable profit |
• | Revenue grew 43%. Net interest income rose 68%, underpinned by the lower cost of funding. Net fee income and gains on financial transactions fell slightly. |
• | Costs increased 37%, hit by high inflation and the peso’s depreciation. The efficiency ratio improved to 58.5%, 263 bps lower than in the first quarter of 2019. |
• | Loan-loss provisions decreased 20%, as there were no relevant impacts from one-offs. The NPL ratio stood at 3.97% and the coverage ratio at 113%. |
Customers | ||||||
March 2020. Thousands | ||||||
Loyal customers | Digital customers | |||||
1,299 | 2,249 | |||||
46 | % | /active customers | +7 | % | YoY |
Activity | ||||||||||
March 2020. EUR billion and % change in constant euros | ||||||||||
+24% | ||||||||||
-1% | QoQ | |||||||||
QoQ | ||||||||||
5 | 10 | |||||||||
+16% | +34% | |||||||||
YoY | YoY | |||||||||
Gross loans and advances to customers excl. reverse repos | Customer deposits excl. repos + mutual funds |
Underlying income statement | |||||||
EUR million and % change in constant euros | |||||||
Q1'20 | / Q4'19 | / Q1'19 | |||||
Revenue | 318 | -21 | % | +43 | % | ||
Expenses | -186 | -21 | % | +37 | % | ||
LLPs | -39 | -37 | % | -20 | % | ||
PBT | 79 | +52 | % | +250 | % | ||
Underlying attrib. profit | 59 | +15 | % | +745 | % |
42 | January - March 2020 |
• | Santander Uruguay remained as the country’s leading privately-owned bank, with a strategy focused on retail banking and improving efficiency and the quality of service. |
• | Underlying attributable profit rose 14% year-on-year, spurred by increased revenue. Activity grew at a steady pace in the quarter, which enabled us to continue gaining market share. |
• | Gross income rose 14%, backed by customer revenue and the positive performance of gains on financial transactions, due to exchange rate volatility. |
• | Operating expenses rose at a slower pace than total income, improving the efficiency ratio by 131 bps year-on-year to 41.8%. |
• | Loan-loss provisions increased 42% due to extraordinary recoveries recorded in the first quarter of 2019. High coverage (101%) and cost of credit improved to 2.40% (-32 bps year-on-year). |
January - March 2020 | 43 |
CORPORATE CENTRE | |||
Highlights | |||
In the health crisis environment caused by the spread of COVID-19, the Corporate Centre is playing a critical role in supporting the Group through the corporate crisis committees (Gold, Silver and Bronze). Also, in this context and to protect the health of employees, nearly 100% of the staff is teleworking. | |||
• The Corporate Centre’s objective is to aid the operating units by contributing value and carrying out the corporate function of oversight and control. It also carries out functions related to financial and capital management. • The underlying attributable loss decreased compared to 2019, mainly due to foreign currency hedging. | |||
EUR | -434 Mn | ||
Underlying attributable profit |
• | It makes the Group’s governance more solid, through global control frameworks and supervision. |
• | Fostering the exchange of best practices in management of costs and generating economies of scale. This enables us to be one of the most efficient banks. |
• | It contributes to the launch of projects that will be developed by global business areas. |
• | Financial Management functions: |
– | Structural management of liquidity risk associated with funding the Group’s recurring activity, stakes of a financial nature and management of net liquidity related to the needs of some business units. |
– | This activity is carried out by the different funding sources (issuances and other), always maintaining an adequate profile in volumes, maturities and costs. The price at which these operations are made with other Group units is the market rate plus the premium, which in liquidity terms, the Group supports by immobilising funds during the term of the operation. |
– | Interest rate risk is also actively managed in order to soften the impact of interest rate changes on net interest income, conducted via high credit quality, very liquid and low capital consumption derivatives. |
– | Strategic management of the exposure to exchange rates in equity and dynamic in the countervalue of the units’ annual results in euros. Net investments in equity are currently covered by EUR 23,692 million (mainly Brazil, the UK, Mexico, Chile, the US, Poland and Norway) with different instruments (spot, fx, forwards). |
• | Management of total capital and reserves: efficient capital allocation to each of the units in order to maximise shareholder return. |
• | Positive impact of EUR 93 million in gains on financial transactions mainly due to foreign currency hedging. |
• | On the other hand, the positive trend on operating expenses continued, improving 13% compared to the first quarter of 2019, driven by ongoing streamlining and simplification measures. |
CORPORATE CENTRE | |||||||||||
EUR million | |||||||||||
Q1'20 | Q4'19 | Chg. | Q1'19 | Chg. | |||||||
Gross income | -304 | -381 | -20 | % | -399 | -24 | % | ||||
Net operating income | -389 | -471 | -17 | % | -497 | -22 | % | ||||
PBT | -413 | -529 | -22 | % | -559 | -26 | % | ||||
Underlying attrib. profit | -434 | -459 | -6 | % | -517 | -16 | % |
44 | January - March 2020 |
Response to the COVID-19 crisis Business model | ||||||||
Secondary segments |
RETAIL BANKING | |
Highlights (changes in constant euros) • In the quarter, Santander continued to support its customers, corporates and governments in all countries with the usual product and services and the launch of extraordinary measures arising from the global health crisis.• The Group continued to focus on improving customer satisfaction, increasing loyalty and boosting the use of remote channels. In March, we had almost 146 million customers, of which more than 21 million are loyal and increased by more than 4 million in twelve months the number of digital customers.• Underlying attributable profit of EUR 1,637 million in the first quarter, 4% lower year-on-year, driven by higher provisions. | |
EUR 1,637 Mn | |
Underlying attributable profit |
• | In individuals, we are offering mortgages of up to 90% of the property’s value and at a term of more than 30 years in Brazil. We continued to expand Santander Life in Chile and launched a numberless credit card in Mexico, providing greater security to our customers. |
• | In auto finance, we signed strategic agreements in Europe, the joint initiative between SBNA and SC USA regarding prime auto loans continued to thrive and Peru and Colombia continued to increase their activity in this business. |
• | In the SME segment, we continued to move forward with products such as Prospera in Brazil and Uruguay and Financia&Go in Spain, the first fully digital invoice financing service for SMEs and self-employed workers on external platforms. In Argentina, we launched the digital onboarding service for SMEs. |
• | Of note in corporates were strategies such as the Trade Club Alliance in the UK, a digital platform to foster international trade. |
• | Total income remained flat, as the increase in net interest income was offset by lower gains on financial transactions and other income. |
• | Costs had no material change. |
• | Loan-loss provisions up 13% primarily due to higher volumes. Cost of credit stood al 1.17% and the NPL ratio improved both year-on-year (-32 bps) and to quarter-on-quarter (-8 bps). |
Customers | ||||||
March 2020. Thousands | ||||||
Loyal customers | Digital customers | |||||
21,453 | 38,279 | |||||
31 | % | /active customers | +13 | % | YoY |
Activity | ||||||||||
March 2020. EUR billion and % change in constant euros | ||||||||||
+2% | -1% | |||||||||
QoQ | QoQ | |||||||||
760 | 669 | |||||||||
+4% | +3% | |||||||||
YoY | YoY | |||||||||
Gross loans and advances to customers excl. reverse repos | Customer deposits excl. repos + mutual funds |
Underlying income statement | |||||||
EUR million and % change in constant euros | |||||||
Q1'20 | / Q4'19 | / Q1'19 | |||||
Revenue | 9,972 | -5 | % | 0 | % | ||
Expenses | -4,526 | -5 | % | +1 | % | ||
LLPs | -2,289 | -4 | % | +13 | % | ||
PBT | 2,818 | -3 | % | -7 | % | ||
Underlying attrib. profit | 1,637 | -9 | % | -4 | % |
January - March 2020 | 45 |
Response to the COVID-19 crisis Business model | ||||||||
Secondary segments |
CORPORATE & INVESTMENT BANKING | ||
Highlights (changes in constant euros) | ||
In the context of the COVID-19 health crisis, the initial efforts focused on implementing contingency plans to protect employees and provide business continuity. The strong relationship with our global clients (corporates, governments, societies and institutions) has been essential to support them in their capital issuances and provide financing solutions and transactional services. | ||
• These measures were reflected in the 16% increase in lending volumes to EUR 125,306 million in the quarter. Deposits rose 24% compared to December 2019.• Underlying attributable profit in the quarter was 21% higher year-on-year at EUR 491 million, driven by double-digit growth across almost all core businesses, which more than offset the negative impact from the increase counterparty credit risk (CVA), due to volatility in the financial markets. | ||
EUR 491 Mn | ||
Underlying attributable profit |
• | Cash management: sustained growth in all geographic areas. Of note was the positive performance of Spain, the UK and Europe with double-digit growth year-on-year. |
• | Export & Agency Finance: we maintained leadership positions in export financing backed by export credit agencies (ECA) in the quarter, supporting our clients in their export activities and with strong increases in Europe and Asia. |
• | Trade & Working Capital Solutions: Of note was activity in Continental Europe, the Americas and Asia, with strong growth in all products and strengthening support for our clients, especially in Receivables and Supply Chain Finance programmes. |
• | Debt Capital Markets: significant growth in the quarter, backed by the positive performance in Spain, the UK and the US. We continued to focus on activities related to sustainable financing, being a reference for the issuance of green bonds, while maintaining our leadership in Latin America by number of transactions and significant positions in Europe. |
• | Corporate Finance: in merger and acquisitions (M&A) we strengthened our position as the leader in our main markets, with noteworthy operations such as advising Cellnex on the purchase of Omtel in Portugal as well as Mexico Infrastructure Partners on the largest transaction in the infrastructure sector in Mexico. |
• | Syndicated Corporate Loans: we continued to play a significant role, although with a reduced volume of acquisitions during the year due to low M&A activity. In line with our responsible banking strategy, we increased our range of sustainable finance products via green loans or loans linked to sustainable indices. |
• | Structured Financing: Santander maintained its global leadership position in Project Finance, remaining among the top 10 global competitors with a position of over USD 1 billion in three deals. |
• | Global markets: The activity was heavily impacted by the crisis, particularly in the management of positions subject to CVA. Positive performance in other Markets businesses, with good evolution in institutional sales in the UK, Mexico, Chile and Asia, and in the corporate segment in Spain, Europe and the Americas. |
Activity | ||||||||||
March 2020. EUR billion and % change in constant euros | ||||||||||
+16% | +20% | |||||||||
QoQ | QoQ | |||||||||
125 | 101 | |||||||||
+29% | +19% | |||||||||
YoY | YoY | |||||||||
Gross loans and advances to customers excl. reverse repos | Customer deposits excl. repos + mutual funds |
46 | January - March 2020 |
Response to the COVID-19 crisis Business model | ||||||||
Secondary segments |
Total income breakdown | |
Constant EUR million |
TOTAL | +9 | % |
Capital & Other | -6 | % |
Global Markets | +3 | % |
Global Debt Financing | +21 | % |
Global Transaction Banking | +8 | % |
(*) In euros: +2% |
Underlying income statement | |||||||
EUR million and % change in constant euros | |||||||
Q1'20 | / Q4'19 | / Q1'19 | |||||
Revenue | 1,300 | -8 | % | +9 | % | ||
Expenses | -536 | -11 | % | -1 | % | ||
LLPs | -4 | -97 | % | -49 | % | ||
PBT | 745 | +15 | % | +19 | % | ||
Underlying attrib. profit | 491 | +21 | % | +21 | % |
January - March 2020 | 47 |
Response to the COVID-19 crisis Business model | ||||||||
Secondary segments |
WEALTH MANAGEMENT & INSURANCE | ||
Highlights (changes in constant euros) | ||
In response to the challenges posed by COVID-19, almost all employees are working remotely, critical people and processes were identified and business continuity plans were activated. In addition, follow-up and interaction with clients, with market updates and daily reports on the situation, reinforcing relationships and trust. | ||
• Underlying attributable profit rose 21% compared to the first quarter of 2019.• Total contribution (net profit + net fee income) of EUR 596 million, 7% higher than in the first quarter of 2019.• Assets under management reached EUR 345 billion, 2% lower year-on-year, affected by the crisis at the end of the quarter. | ||
EUR 240 Mn | ||
Underlying attributable profit |
• | In Private Banking, we performed well early this year, increasing contribution to profit year-on-year. This was achieved by strengthening the value proposition in all our countries, connecting and coordinating investment teams to leverage our global scale and developing a more innovative new product offering (for example with alternative funds), mainly in Spain, Miami, Switzerland and Brazil. |
Collaboration volumes | ||||
EUR million | ||||
5,850 |
• | In Santander Asset Management we remained focused on enhancing our product offering, such as the Santander GO range (with a volume of more than EUR 900 million since its launch), while we continue working on developing our Global Multi Asset Solutions platform and others. |
• | In Insurance, focus remained on the strategy of strengthening the product offering for our clients, completing it in all the countries where we operate, and reached 20 million total protected customers worldwide. |
• | In Private Banking, the volume of customer assets and liabilities amounted to EUR 213 million in March 2020, 3% lower year-on-year, conditioned by the impact of markets, especially in the custody business. |
Business performance: SAM and Private Banking | ||||||
March 2020. EUR billion and % change in constant euros |
/ Mar-19 | |
-2 | % |
-2 | % |
-1 | % |
-3 | % |
-10 | % |
+8 | % |
+6 | % |
January - March 2020 | 48 |
Response to the COVID-19 crisis Business model | ||||||||
Secondary segments |
• | In SAM, total assets under management rose to EUR 171 billion, 1% lower compared to the same period of 2019, due to the impact of the crisis on the market. In February, we reached EUR 183 billion, up 6% compared to March 2019. |
• | In Insurance, the volume of gross written premiums in the quarter decreased 23% year-on-year to EUR 1.7 billion, with a decline of 3% in protection and 35% in savings insurance, driven by the current interest rate environment. Production was impacted by lower activity, and will be further affected during the crisis. |
• | Total income rose 15% mainly driven by net fee income (+20%) due to the higher average balance managed and the greater contribution of the insurance business. |
• | Total fee income generated, including those ceded to the branch network, amounted to EUR 852 million and represented 30% of the Group's total. |
Total fee income generated | ||||
EUR million | ||||
852 |
• | Operating expenses were 2% higher, well bellow income growth, due to the Allianz-Popular perimeter integration. |
• | Higher loan-loss provisions due to the recoveries recorded a year earlier. |
Total profit contribution | ||||||
EUR million and % change in constant euros | ||||||
Q1'20 | Q1'20 | |||||
596 | 596 | |||||
-5 | % | / Q4'19 | +7 | % | / Q1'19 |
Underlying income statement | |||||||
EUR million and % change in constant euros | |||||||
Q1'20 | / Q4'19 | / Q1'19 | |||||
Revenue | 586 | +1 | % | +15 | % | ||
Expenses | -244 | +1 | % | +2 | % | ||
LLPs | -7 | — | — | ||||
PBT | 334 | -6 | % | +22 | % | ||
Underlying attrib. profit | 240 | -5 | % | +21 | % |
January - March 2020 | 49 |
Response to the COVID-19 crisis Business model | ||||||||
Secondary segments |
SANTANDER GLOBAL PLATFORM (SGP) | ||
Highlights (changes in constant euros) • Santander Global Platform (SGP) aims to accelerate our growth by deploying global payments and financial solutions for SMEs and individuals in high-growth and large addressable markets.• SGP leverages our scale and footprint, our expertise in payments and our track-record scaling up fintech solutions to build best-in-class services.• In the first quarter of 2020 we continued to make relevant progress on developing our platforms. We deployed our Global Merchant Solution (GMS) in Mexico for our Mexican merchants. Likewise, and to strengthen our expansion plan, we acquired the acquiring business of our partner Elavon in Mexico and, in addition to Ebury in 2019, we acquired Mercury TFS in GTS this year. | ||
GMS/Getnet GTS/OneTrade & Ebury Superdigital Openbank | ||
• | Global Merchant Services is a single open platform for the global development of the acquiring business through the unique brand Getnet. This business has a high strategic value in the relationship with our customers given the relevance of collections and value-added services for merchants. |
• | Global Trade Services, our global platform to serve companies that trade internationally using international payments, FX, trade finance and multi-country accounts. The revenue pool for global transaction banking services in the Group's Retail Banking, excluding Corporate & Investment Banking and WM&I, was EUR 307 million in the first quarter. |
50 | January - March 2020 |
Response to the COVID-19 crisis Business model | ||||||||
Secondary segments |
• | Superdigital, our financial inclusion platform for individuals that require a simple, flexible pre-banking service. It enables us to meet the financial needs of the underserved in a cost-effective way, providing them with basic financial products and a path to access credit, thus serving them responsibly and profitably. |
• | Openbank, our global, full-service digital bank caters the current account and cards also offered by neobanks, including loans and mortgages, and a state-of-the-art robo-advisory and open platform brokerage services. |
• | Santander InnoVentures, our venture capital investments in the fintech ecosystem, continued to grow. As at end-March, it had invested more than USD 150 million in 31 companies in 9 countries. We are implementing 13 projects across our banks for the benefit of our customer base. |
• | The construction of platforms is where most of the spend is concentrated. We are making progress in the development of new solutions and rolling it out in countries. This has a negative impact of EUR 31 million on the income statement for the first quarter. |
• | Profit obtained from commercial relationships with our customers linked to the global SGP platforms, and according to the criteria for allocating the aforementioned results, resulted in EUR 74 million in the quarter. |
Underlying income statement | |||||||
EUR million and % change in constant euros | |||||||
Q1'20 | / Q4'19 | / Q1'19 | |||||
Revenue | 260 | +6 | % | +5 | % | ||
Expenses | -186 | -7 | % | +20 | % | ||
LLPs | -5 | -69 | % | -70 | % | ||
PBT | 71 | +180 | % | -5 | % | ||
Underlying attrib. profit | 43 | +740 | % | -5 | % |
January - March 2020 | 51 |
Responsible banking | ||||||||
Responsible banking |
Santander Responsible banking targets |
1. | According to relevant external indexes in each country (Great Place to Work, Top Employer, Merco, etc.). |
52 | January - March 2020 |
Responsible banking | ||||||||
Responsible banking |
First quarter highlights |
The Group is supporting its stakeholders in the difficulties they may have as a result of the current pandemic. To this end, we have put in place various contingency plans in the countries in which we operate, which have been discussed in previous sections of this report. | |
In addition, the Group continued to develop responsible banking initiatives in the quarter, in the areas of environmental sustainability, diversity and support to the communities. The most relevant are detailed below. | |
We were recognised for our excellent results in this area with the Gold Class distinction in The Sustainability Yearbook 2020 released by S&P Global, as Santander ranked 1st in the Dow Jones Sustainability Index. We achieved a total score of 86 points out of 100, reaching the maximum score of 100 in a number of assessed areas, including tax strategy, privacy protection, environmental reporting and financial inclusion. | |
As part of our corporate commitment with the environment, Santander continued financing green alternatives and renewable energies in its different countries: Santander Argentina was involved in the placement of the first green bond issued on the primary local debt market. The placement, which also involved other banks and financial institutions, amounted to USD 48.4 million. This operation is another step towards the goal of bringing sustainability principles into the Argentinian capital market in line with world markets. In retail baking, Santander Polska launched a leasing offer to finance a wide range of solar installations. | |
Regarding our diversity and inclusion commitments, we have also announced our membership to The Valuable 500, committing to include disability inclusion in the board's agenda, and signed the UN Women Empowerment principles. | |
We were awarded Top Employers 2020 for the excellent working conditions in Spain, Poland, the UK and Chile, and Santander Consumer Finance in Germany, the Netherlands, Austria, Italy, Poland and Belgium. To continue working in line with our corporate culture, we implemented a minimum standard for parental leave to be implemented in 2020, offering at least 14 paid weeks for mothers and four weeks for the secondary parent. | |
In addition to the measures implemented to minimise the impacts of the COVID-19 pandemic, we continued to invest in the communities where we operate. | |
In collaboration with MIT Professional Education, we launched the Santander Scholarships MIT Leading Digital Transformation, in which 2,500 university students and eligible professionals from 14 countries will benefit from specialised training in digital transformation. Additionally, Santander and the British Council launched the Santander British Council Summer Experience, 90 full scholarships to foster the learning of English and knowledge of British culture among young people from 12 countries in the international networks in which both institutions operate. | |
As a result of these efforts, Banco Santander was ranked the world’s most sustainable bank in the Dow Jones Sustainability Index for the first time and was also first in Europe for the second year running. The index evaluates the Group’s performance across economic, environmental and social dimensions. | |
Also, we continue to form part of the various sustainability indices, providing non-financial information to the ESG markets, investors and analysts. | |
January - March 2020 | 53 |
Response to the COVID-19 crisis Business model | Corporate governance | |||||||
Corporate governance |
A responsible bank has a solid governance model with well-defined functions; it manages risks and opportunities prudently and defines its long-term strategy watching out for the interests of all its stakeholders and society in general |
• | As of 27 February 2020, the Board submitted a resolution to the General Shareholders’ Meeting recommending the appointment of Mr Sergio Rial as a new executive director of the Group which was approved on 3 April 2020. Mr Sergio Rial will fill the vacancy left by Mr Ignacio Benjumea with effect from the approval of his election. |
• | The aforementioned General Shareholders’ Meeting also agreed to appoint Mr Luis Isasi as an external director. As announced on 26 November 2019, Mr Luis Isasi will replace Mr Guillermo de la Dehesa on 3 April 2020. |
• | Both appointments are subject to regulatory approval. |
• | After leaving the Board on 3 April 2020, Mr Guillermo de la Dehesa also ceased to be a member of the executive, appointments, remuneration and innovation and technology committees. |
• | As of April 2020, Mrs Pamela Walkden was appointed, with effects from 26 April, as Group audit committee Chairman replacing Ms Belén Romana, who will remain a member of the committee, having completed the four year period since her appointment as chairman, as provided by the regulation of the board. |
• | In accordance of Royal Decree 463/2020 of 14 March declaring the state of emergency to address the health situation caused by COVID-19, in accordance with articles 40 and 41 of Royal Decree-Law 8/2020 of 17 March on urgent extraordinary measures to address the economic and social impact of COVID-19 and in order to safeguard the general interests, health and safety of shareholders, employees and other people who participate in organising and holding the general meeting, by resolution of the board of directors announced on 10 and 23 March, the venue of the ordinary general shareholders’ meeting was changed to the Ciudad Grupo Santander in Boadilla del Monte (Madrid), and was held without the shareholders attending in person but using the software applications to remotely attend the meeting established in the Bank’s bylaws and regulations for the general shareholders’ meeting to guarantee the rights of all shareholders to receive information, to remotely attend the meetings, to participate and to vote at the general meeting. |
• | Furthermore, and in compliance with the ECB recommendation issued on 27 March, on 2 April a material fact was published, announcing the decision of the Board to withdraw from the agenda of the ordinary general shareholders meeting the proposals under points Two and Seven A, regarding, respectively, the application of the Banks 2019 results and the capital increase to instrument, through the application of the Santander Dividendo Elección programme, the part of the remuneration corresponding to the final dividend against 2019 results initially contemplated. A further general shareholders meeting will be held no later than 31 October in which shareholders’ will have the opportunity to decide on the new proposed application of 2019 results, which might differ from the one initially proposed for the aforementioned General Shareholders’ Meeting and, if needed, on any supplementary resolutions. |
54 | January - March 2020 |
Response to the COVID-19 crisis Business model | Corporate governance | |||||||
Corporate governance |
• | The decision to withdraw from the agenda the aforementioned proposals was as provided for by the joint communication issued by the Spanish National Securities Commission and the Spanish Registrars Society on 26 March 2020, articles 40.6.bis and 41.3 Royal Decree-Law 8/2020 on 17 March, according to the First Final Provision of Royal Decree Law 11/2020 on 31 March. |
• | At the AGM, a total of 589.268 shareholders were present or represented, holders of 10,802,580,226 shares. The quorum was 65.0% of the Bank’s share capital. |
• | The agreements submitted to a vote received an average 94.37% of favourable votes. The Bank’s management during 2019 was approved by 99.68% of votes. |
• | The remuneration policy for directors for 2020, 2021 and 2022 was submitted to the Meeting’s binding approval, and received 94.40% of votes in favour. |
• | All the proposed agreements, the reports of administrators and other legal documentation regarding the AGM were published on the Group’s website on February 28 when the meeting was called. The documentation includes the 2019 Annual Report which has a section on corporate governance setting out the main activities of the board and of its committees in 2019, including detailed information on the regulations and procedures on which the Bank’s corporate governance system is based, as well as the annual report on directors’ remuneration. |
• | In addition as the appointments of Mr Luis Isasi and Mr Sergio Rial as new directors, the board approved the ratification and re-election of Mrs Pamela Walkden as independent director and the re-election of Mrs Ana Botín-Sanz de Sautuola as an executive director, Mr Rodrigo Echenique as an external director and Mrs Esther Giménez-Salinas and Mrs Sol Daurella as independent directors. |
January - March 2020 | 55 |
Response to the COVID-19 crisis Business model | Santander share | |||||||
Santander share |
Share price | ||||
START 31/12/2019 | END 31/03/2020 | |||
€3.730 | €2.218 | |||
Maximum 17/02/2020 | Minimum 16/03/2020 | |||
€3.964 | €1.928 |
Comparative share performance |
56 | January - March 2020 |
Response to the COVID-19 crisis Business model | Santander share | |||||||
Santander share |
Share capital distribution by geographic area | ||
March 2020 | ||
The Americas | Europe | Other |
21.09% | 77.64% | 1.27% |
1st | Bank in the Eurozone by market capitalisation | |
EUR 36,859 million |
The Santander share | ||
March 2020 | ||
Shares and trading data | ||
Shares (number) | 16,618,114,582 | |
Average daily turnover (number of shares) | 79,988,463 | |
Share liquidity (%) | 31 | |
(Number of shares traded during the year / number of shares) | ||
Stock market indicators | ||
Price / Tangible book value (X) | 0.53 | |
P/E ratio (X) | 48.29 | |
Free float (%) | 99.83 |
Share capital distribution by type of shareholder | |
March 2020 |
Institutional |
58.19% |
Board (*) |
1.10% |
Retail |
40.71% |
January - March 2020 | 57 |
58 | January - March 2020 |
Response to the COVID-19 crisis Business model | ||||||||
Group financial information |
Net fee income. Consolidated | ||||||||
EUR million | ||||||||
Q1'20 | Q4'19 | Change (%) | Q1'19 | Change (%) | ||||
Fees from services | 1,705 | 1,791 | (4.8) | 1,779 | (4.2) | |||
Wealth management and marketing of customer funds | 928 | 948 | (2.1) | 936 | (0.9) | |||
Securities and custody | 220 | 222 | (0.9) | 216 | 1.9 | |||
Net fee income | 2,853 | 2,961 | (3.6) | 2,931 | (2.7) |
Operating expenses. Consolidated | ||||||||
EUR million | ||||||||
Q1'20 | Q4'19 | Change (%) | Q1'19 | Change (%) | ||||
Staff costs | 2,899 | 3,053 | (5.0) | 3,006 | (3.6) | |||
Other general administrative expenses | 1,949 | 2,126 | (8.3) | 2,005 | (2.8) | |||
Information technology | 498 | 588 | (15.3) | 551 | (9.6) | |||
Communications | 133 | 128 | 3.9 | 132 | 0.8 | |||
Advertising | 136 | 196 | (30.6) | 157 | (13.4) | |||
Buildings and premises | 210 | 218 | (3.7) | 211 | (0.5) | |||
Printed and office material | 26 | 27 | (3.7) | 32 | (18.8) | |||
Taxes (other than tax on profits) | 138 | 132 | 4.5 | 126 | 9.5 | |||
Other expenses | 808 | 837 | (3.5) | 796 | 1.5 | |||
Administrative expenses | 4,848 | 5,179 | (6.4) | 5,011 | (3.3) | |||
Depreciation and amortisation | 729 | 792 | (8.0) | 747 | (2.4) | |||
Operating expenses | 5,577 | 5,971 | (6.6) | 5,758 | (3.1) |
Operating means. Consolidated | |||||||||||||
Employees | Branches | ||||||||||||
Mar-20 | Mar-19 | Change | Mar-20 | Mar-19 | Change | ||||||||
Europe | 85,805 | 93,060 | (7,255 | ) | 5,329 | 6,696 | (1,367 | ) | |||||
Spain | 27,354 | 31,325 | (3,971 | ) | 3,222 | 4,365 | (1,143 | ) | |||||
Santander Consumer Finance | 13,859 | 14,796 | (937 | ) | 417 | 433 | (16 | ) | |||||
United Kingdom | 24,500 | 25,485 | (985 | ) | 615 | 754 | (139 | ) | |||||
Portugal | 6,512 | 6,735 | (223 | ) | 529 | 561 | (32 | ) | |||||
Poland | 11,034 | 12,551 | (1,517 | ) | 535 | 571 | (36 | ) | |||||
Other | 2,546 | 2,168 | 378 | 11 | 12 | (1 | ) | ||||||
North America | 37,398 | 37,149 | 249 | 2,048 | 2,071 | (23 | ) | ||||||
US | 17,277 | 17,279 | (2 | ) | 619 | 659 | (40 | ) | |||||
Mexico | 20,121 | 19,870 | 251 | 1,429 | 1,412 | 17 | |||||||
South America | 68,624 | 69,973 | (1,349 | ) | 4,524 | 4,509 | 15 | ||||||
Brazil | 45,807 | 46,793 | (986 | ) | 3,617 | 3,562 | 55 | ||||||
Chile | 11,437 | 11,888 | (451 | ) | 366 | 380 | (14 | ) | |||||
Argentina | 9,290 | 9,271 | 19 | 438 | 468 | (30 | ) | ||||||
Other | 2,090 | 2,021 | 69 | 103 | 99 | 4 | |||||||
Santander Global Platform | 1,424 | 545 | 879 | 1 | 1 | — | |||||||
Corporate Centre | 1,697 | 1,757 | (60 | ) | |||||||||
Total Group | 194,948 | 202,484 | (7,536 | ) | 11,902 | 13,277 | (1,375 | ) |
Net loan-loss provisions. Consolidated | ||||||||||
EUR million | ||||||||||
Q1'20 | Q4'19 | Change (%) | Q1'19 | Change (%) | ||||||
Non-performing loans | 2,616 | 2,974 | (12.0) | 2,515 | 4.0 | |||||
Country-risk | (6 | ) | 1 | — | 1 | — | ||||
Recovery of written-off assets | (301 | ) | (402 | ) | (25.1) | (344 | ) | (12.5) | ||
Net loan-loss provisions | 2,309 | 2,573 | (10.3) | 2,172 | 6.3 |
January - March 2020 | 59 |
Response to the COVID-19 crisis Business model | ||||||||
Group financial information |
Loans and advances to customers. Consolidated | |||||||||
EUR million | |||||||||
Change | |||||||||
Mar-20 | Mar-19 | Absolute | % | Dec-19 | |||||
Commercial bills | 34,619 | 31,980 | 2,639 | 8.3 | 37,753 | ||||
Secured loans | 499,667 | 495,005 | 4,662 | 0.9 | 513,929 | ||||
Other term loans | 279,295 | 269,908 | 9,387 | 3.5 | 267,138 | ||||
Finance leases | 35,360 | 34,030 | 1,330 | 3.9 | 35,788 | ||||
Receivable on demand | 9,418 | 8,247 | 1,171 | 14.2 | 7,714 | ||||
Credit cards receivable | 19,052 | 22,687 | (3,635 | ) | (16.0) | 23,876 | |||
Impaired assets | 31,697 | 34,086 | (2,389 | ) | (7.0) | 32,559 | |||
Gross loans and advances to customers (excl. reverse repos) | 909,108 | 895,943 | 13,165 | 1.5 | 918,757 | ||||
Reverse repos | 49,005 | 37,696 | 11,309 | 30.0 | 45,703 | ||||
Gross loans and advances to customers | 958,113 | 933,639 | 24,474 | 2.6 | 964,460 | ||||
Loan-loss allowances | 22,706 | 23,444 | (738 | ) | (3.1) | 22,242 | |||
Loans and advances to customers | 935,407 | 910,195 | 25,212 | 2.8 | 942,218 |
Total funds. Consolidated | |||||||||
EUR million | |||||||||
Change | |||||||||
Mar-20 | Mar-19 | Absolute | % | Dec-19 | |||||
Demand deposits | 584,015 | 565,477 | 18,538 | 3.3 | 588,534 | ||||
Time deposits | 191,054 | 202,018 | (10,964 | ) | (5.4) | 196,920 | |||
Mutual funds | 148,003 | 167,870 | (19,867 | ) | (11.8) | 180,405 | |||
Customer funds | 923,072 | 935,365 | (12,293 | ) | (1.3) | 965,859 | |||
Pension funds | 14,549 | 15,623 | (1,074 | ) | (6.9) | 15,878 | |||
Managed portfolios | 28,937 | 28,024 | 913 | 3.3 | 30,117 | ||||
Repos | 40,390 | 40,866 | (476 | ) | (1.2) | 38,911 | |||
Total funds | 1,006,948 | 1,019,878 | (12,930 | ) | (1.3) | 1,050,765 |
Eligible capital (fully loaded) | |||||||||
EUR million | |||||||||
Change | |||||||||
Mar-20 | Mar-19 | Absolute | % | Dec-19 | |||||
Capital stock and reserves | 124,727 | 119,866 | 4,861 | 4.1 | 120,260 | ||||
Attributable profit | 331 | 1,840 | (1,509 | ) | (82.0) | 6,515 | |||
Dividends | — | (920 | ) | 920 | (100.0) | (3,423 | ) | ||
Other retained earnings | (30,166 | ) | (24,315 | ) | (5,851 | ) | 24.1 | (25,385 | ) |
Minority interests | 6,911 | 7,138 | (227 | ) | (3.2) | 6,441 | |||
Goodwill and intangible assets | (27,103 | ) | (29,218 | ) | 2,115 | (7.2) | (28,478 | ) | |
Other deductions | (6,285 | ) | (6,301 | ) | 15 | (0.2) | (5,432 | ) | |
Core CET1 | 68,414 | 68,090 | 324 | 0.5 | 70,497 | ||||
Preferred shares and other eligible T1 | 8,760 | 10,059 | (1,299 | ) | (12.9) | 8,467 | |||
Tier 1 | 77,173 | 78,149 | (975 | ) | (1.2) | 78,964 | |||
Generic funds and eligible T2 instruments | 11,924 | 11,694 | 229 | 2.0 | 11,973 | ||||
Eligible capital | 89,097 | 89,843 | (746 | ) | (0.8) | 90,937 | |||
Risk-weighted assets | 590,952 | 606,300 | (15,347 | ) | (2.5) | 605,244 | |||
CET1 capital ratio | 11.58 | 11.23 | 0.35 | 11.65 | |||||
T1 capital ratio | 13.06 | 12.89 | 0.17 | 13.05 | |||||
Total capital ratio | 15.08 | 14.82 | 0.26 | 15.02 |
60 | January - March 2020 |
EUROPE | |||||||||||
EUR million | |||||||||||
/ | Q4'19 | / | Q1'19 | ||||||||
Underlying income statement | Q1'20 | % | % excl. FX | % | % excl. FX | ||||||
Net interest income | 3,435 | (2.7 | ) | (2.5 | ) | (3.5 | ) | (3.6 | ) | ||
Net fee income | 1,315 | (0.3 | ) | (0.2 | ) | (0.9 | ) | (1.1 | ) | ||
Gains (losses) on financial transactions (1) | 142 | (66.9 | ) | (66.9 | ) | (23.4 | ) | (23.6 | ) | ||
Other operating income | 83 | 546.9 | 534.8 | (45.6 | ) | (45.7 | ) | ||||
Total income | 4,974 | (6.0 | ) | (5.8 | ) | (4.8 | ) | (4.9 | ) | ||
Administrative expenses and amortisations | (2,712 | ) | (0.8 | ) | (0.7 | ) | (3.2 | ) | (3.4 | ) | |
Net operating income | 2,263 | (11.6 | ) | (11.4 | ) | (6.6 | ) | (6.6 | ) | ||
Net loan-loss provisions | (556 | ) | 11.7 | 12.1 | 21.8 | 22.3 | |||||
Other gains (losses) and provisions | (195 | ) | (6.5 | ) | (6.8 | ) | (1.4 | ) | (1.5 | ) | |
Profit before tax | 1,511 | (18.4 | ) | (18.2 | ) | (14.6 | ) | (14.6 | ) | ||
Tax on profit | (438 | ) | (9.0 | ) | (8.9 | ) | (10.9 | ) | (10.9 | ) | |
Profit from continuing operations | 1,072 | (21.7 | ) | (21.5 | ) | (16.0 | ) | (16.0 | ) | ||
Net profit from discontinued operations | — | — | — | — | — | ||||||
Consolidated profit | 1,072 | (21.7 | ) | (21.5 | ) | (16.0 | ) | (16.0 | ) | ||
Non-controlling interests | (99 | ) | (25.1 | ) | (24.9 | ) | (12.8 | ) | (12.8 | ) | |
Underlying attributable profit to the parent | 974 | (21.3 | ) | (21.1 | ) | (16.3 | ) | (16.3 | ) | ||
Balance sheet | |||||||||||
Loans and advances to customers | 681,075 | 0.6 | 2.9 | 3.8 | 5.8 | ||||||
Cash, central banks and credit institutions | 189,610 | 5.1 | 6.3 | 4.4 | 5.3 | ||||||
Debt instruments | 82,119 | (21.3 | ) | (20.1 | ) | (29.2 | ) | (28.3 | ) | ||
Other financial assets | 60,788 | 12.8 | 12.9 | 11.6 | 11.7 | ||||||
Other asset accounts | 47,697 | 15.0 | 16.3 | 6.5 | 7.5 | ||||||
Total assets | 1,061,290 | 0.4 | 2.2 | 0.8 | 2.3 | ||||||
Customer deposits | 580,842 | (3.3 | ) | (1.2 | ) | (1.1 | ) | 0.5 | |||
Central banks and credit institutions | 198,127 | 4.4 | 5.2 | (1.9 | ) | (1.3 | ) | ||||
Marketable debt securities | 136,012 | 1.8 | 4.5 | 5.3 | 7.8 | ||||||
Other financial liabilities | 72,115 | 18.6 | 18.9 | 19.7 | 20.0 | ||||||
Other liabilities accounts | 17,881 | 9.1 | 11.1 | (3.0 | ) | (1.7 | ) | ||||
Total liabilities | 1,004,978 | 0.4 | 2.2 | 0.8 | 2.3 | ||||||
Total equity | 56,312 | 0.3 | 2.7 | 1.2 | 3.4 | ||||||
Memorandum items: | |||||||||||
Gross loans and advances to customers (2) | 652,651 | 0.3 | 2.5 | 2.1 | 3.9 | ||||||
Customer funds | 644,106 | (4.0 | ) | (2.2 | ) | (1.3 | ) | 0.2 | |||
Customer deposits (3) | 567,332 | (2.4 | ) | (0.4 | ) | (0.4 | ) | 1.2 | |||
Mutual funds | 76,774 | (14.4 | ) | (13.8 | ) | (7.2 | ) | (6.6 | ) | ||
Ratios (%) and operating means | |||||||||||
Underlying RoTE | 7.94 | (2.08 | ) | (1.67 | ) | ||||||
Efficiency ratio | 54.5 | 2.9 | 0.9 | ||||||||
NPL ratio | 3.19 | (0.06 | ) | (0.42 | ) | ||||||
NPL coverage | 50.7 | 0.9 | 1.2 | ||||||||
Number of employees | 85,805 | (0.9 | ) | (7.8 | ) | ||||||
Number of branches | 5,329 | (0.1 | ) | (20.4 | ) |
January - March 2020 | 61 |
Spain | |||||||
EUR million | |||||||
/ Q4'19 | / Q1'19 | ||||||
Underlying income statement | Q1'20 | % | % | ||||
Net interest income | 925 | (0.9 | ) | (8.3 | ) | ||
Net fee income | 643 | 3.8 | 3.2 | ||||
Gains (losses) on financial transactions (1) | 156 | (59.7 | ) | 30.9 | |||
Other operating income | 64 | — | (39.1 | ) | |||
Total income | 1,789 | (1.3 | ) | (3.7 | ) | ||
Administrative expenses and amortisations | (944 | ) | (3.4 | ) | (7.8 | ) | |
Net operating income | 844 | 1.2 | 1.5 | ||||
Net loan-loss provisions | (253 | ) | 43.7 | 4.5 | |||
Other gains (losses) and provisions | (104 | ) | 3.5 | (7.3 | ) | ||
Profit before tax | 487 | (12.6 | ) | 2.0 | |||
Tax on profit | (135 | ) | (14.1 | ) | 10.9 | ||
Profit from continuing operations | 352 | (12.0 | ) | (1.1 | ) | ||
Net profit from discontinued operations | — | — | — | ||||
Consolidated profit | 352 | (12.0 | ) | (1.1 | ) | ||
Non-controlling interests | — | (93.7 | ) | — | |||
Underlying attributable profit to the parent | 352 | (12.0 | ) | (1.1 | ) | ||
Balance sheet | |||||||
Loans and advances to customers | 186,296 | 0.6 | (4.1 | ) | |||
Cash, central banks and credit institutions | 78,407 | 0.1 | (2.6 | ) | |||
Debt instruments | 24,458 | (28.7 | ) | (41.7 | ) | ||
Other financial assets | 1,407 | 1.1 | (26.9 | ) | |||
Other asset accounts | 25,209 | 5.4 | 2.0 | ||||
Total assets | 315,778 | (2.3 | ) | (8.0 | ) | ||
Customer deposits | 234,716 | (2.4 | ) | (3.2 | ) | ||
Central banks and credit institutions | 20,341 | (19.4 | ) | (56.4 | ) | ||
Marketable debt securities | 29,503 | 9.9 | 26.2 | ||||
Other financial liabilities | 8,968 | — | 11.7 | ||||
Other liabilities accounts | 6,231 | 19.3 | (16.8 | ) | |||
Total liabilities | 299,759 | (2.3 | ) | (8.7 | ) | ||
Total equity | 16,019 | (2.3 | ) | 5.2 | |||
Memorandum items: | |||||||
Gross loans and advances to customers (2) | 192,490 | 0.6 | (4.4 | ) | |||
Customer funds | 293,889 | (4.8 | ) | (4.2 | ) | ||
Customer deposits (3) | 234,716 | (2.3 | ) | (3.0 | ) | ||
Mutual funds | 59,173 | (13.8 | ) | (8.8 | ) | ||
Ratios (%) and operating means | |||||||
Underlying RoTE | 9.00 | (1.26 | ) | (0.61 | ) | ||
Efficiency ratio | 52.8 | (1.2 | ) | (2.4 | ) | ||
NPL ratio | 6.88 | (0.06 | ) | (0.41 | ) | ||
NPL coverage | 42.0 | 0.9 | (1.3 | ) | |||
Number of employees | 27,354 | (1.0 | ) | (12.7 | ) | ||
Number of branches | 3,222 | (0.4 | ) | (26.2 | ) |
62 | January - March 2020 |
Santander Consumer Finance | |||||||||||
EUR million | |||||||||||
/ | Q4'19 | / | Q1'19 | ||||||||
Underlying income statement | Q1'20 | % | % excl. FX | % | % excl. FX | ||||||
Net interest income | 979 | 1.9 | 2.5 | 4.0 | 5.2 | ||||||
Net fee income | 187 | (4.4 | ) | (4.2 | ) | (12.8 | ) | (12.5 | ) | ||
Gains (losses) on financial transactions (1) | (9 | ) | 171.8 | 177.3 | — | — | |||||
Other operating income | 15 | (54.9 | ) | (54.9 | ) | 34.2 | 35.5 | ||||
Total income | 1,171 | (1.2 | ) | (0.7 | ) | 0.3 | 1.2 | ||||
Administrative expenses and amortisations | (514 | ) | 3.0 | 3.4 | 1.2 | 2.1 | |||||
Net operating income | 656 | (4.3 | ) | (3.8 | ) | (0.4 | ) | 0.6 | |||
Net loan-loss provisions | (172 | ) | 15.9 | 17.7 | 41.4 | 44.3 | |||||
Other gains (losses) and provisions | 44 | — | — | 85.4 | 84.0 | ||||||
Profit before tax | 528 | 4.8 | 5.3 | (5.9 | ) | (5.2 | ) | ||||
Tax on profit | (149 | ) | 35.0 | 35.4 | (6.5 | ) | (5.9 | ) | |||
Profit from continuing operations | 380 | (3.7 | ) | (3.2 | ) | (5.6 | ) | (4.9 | ) | ||
Net profit from discontinued operations | — | — | — | — | — | ||||||
Consolidated profit | 380 | (3.7 | ) | (3.2 | ) | (5.6 | ) | (4.9 | ) | ||
Non-controlling interests | (76 | ) | 0.1 | 0.1 | (3.1 | ) | (3.1 | ) | |||
Underlying attributable profit to the parent | 304 | (4.6 | ) | (4.0 | ) | (6.2 | ) | (5.3 | ) | ||
Balance sheet | |||||||||||
Loans and advances to customers | 99,989 | (2.2 | ) | (0.2 | ) | 4.4 | 7.0 | ||||
Cash, central banks and credit institutions | 12,186 | 47.6 | 51.7 | 93.5 | 100.4 | ||||||
Debt instruments | 2,710 | (15.2 | ) | (10.6 | ) | (21.3 | ) | (17.7 | ) | ||
Other financial assets | 39 | 18.2 | 20.6 | 18.0 | 20.9 | ||||||
Other asset accounts | 3,986 | (0.4 | ) | 1.0 | 6.9 | 8.6 | |||||
Total assets | 118,911 | 1.0 | 3.2 | 8.8 | 11.6 | ||||||
Customer deposits | 38,119 | (3.7 | ) | (1.0 | ) | 3.3 | 6.4 | ||||
Central banks and credit institutions | 28,302 | 12.5 | 14.3 | 14.3 | 16.6 | ||||||
Marketable debt securities | 36,931 | 0.4 | 2.2 | 15.2 | 17.9 | ||||||
Other financial liabilities | 1,080 | (23.6 | ) | (22.3 | ) | (9.6 | ) | (8.4 | ) | ||
Other liabilities accounts | 3,476 | (10.1 | ) | (8.8 | ) | (7.4 | ) | (6.2 | ) | ||
Total liabilities | 107,909 | 1.0 | 3.2 | 9.4 | 12.1 | ||||||
Total equity | 11,001 | 0.6 | 3.8 | 3.8 | 7.2 | ||||||
Memorandum items: | |||||||||||
Gross loans and advances to customers (2) | 102,542 | (2.1 | ) | — | 4.5 | 7.1 | |||||
Customer funds | 38,119 | (3.7 | ) | (1.0 | ) | 3.4 | 6.6 | ||||
Customer deposits (3) | 38,119 | (3.7 | ) | (1.0 | ) | 3.4 | 6.6 | ||||
Mutual funds | — | — | — | — | — | ||||||
Ratios (%) and operating means | |||||||||||
Underlying RoTE | 13.86 | (0.76 | ) | (0.99 | ) | ||||||
Efficiency ratio | 43.9 | 1.8 | 0.4 | ||||||||
NPL ratio | 2.43 | 0.13 | 0.10 | ||||||||
NPL coverage | 103.8 | (2.3 | ) | (1.5 | ) | ||||||
Number of employees | 13,859 | (4.1 | ) | (6.3 | ) | ||||||
Number of branches | 417 | 0.2 | (3.7 | ) |
January - March 2020 | 63 |
United Kingdom | |||||||||||
EUR million | |||||||||||
/ | Q4'19 | / | Q1'19 | ||||||||
Underlying income statement | Q1'20 | % | % excl. FX | % | % excl. FX | ||||||
Net interest income | 898 | (6.5 | ) | (6.4 | ) | (7.8 | ) | (9.0 | ) | ||
Net fee income | 193 | (14.4 | ) | (14.4 | ) | (10.7 | ) | (11.8 | ) | ||
Gains (losses) on financial transactions (1) | (7 | ) | — | — | — | — | |||||
Other operating income | 13 | (49.3 | ) | (49.8 | ) | (6.9 | ) | (8.1 | ) | ||
Total income | 1,098 | (10.0 | ) | (9.9 | ) | (9.0 | ) | (10.1 | ) | ||
Administrative expenses and amortisations | (714 | ) | 0.3 | 0.4 | (3.4 | ) | (4.6 | ) | |||
Net operating income | 384 | (24.4 | ) | (24.4 | ) | (17.8 | ) | (18.8 | ) | ||
Net loan-loss provisions | (49 | ) | (48.6 | ) | (49.0 | ) | (18.6 | ) | (19.6 | ) | |
Other gains (losses) and provisions | (74 | ) | 12.1 | 11.4 | 49.4 | 47.5 | |||||
Profit before tax | 260 | (24.6 | ) | (24.4 | ) | (27.0 | ) | (27.9 | ) | ||
Tax on profit | (66 | ) | (26.1 | ) | (26.0 | ) | (31.6 | ) | (32.4 | ) | |
Profit from continuing operations | 194 | (24.1 | ) | (23.8 | ) | (25.3 | ) | (26.3 | ) | ||
Net profit from discontinued operations | — | — | — | — | — | ||||||
Consolidated profit | 194 | (24.1 | ) | (23.8 | ) | (25.3 | ) | (26.3 | ) | ||
Non-controlling interests | (6 | ) | (0.3 | ) | (0.3 | ) | 15.2 | 13.7 | |||
Underlying attributable profit to the parent | 188 | (24.7 | ) | (24.4 | ) | (26.2 | ) | (27.1 | ) | ||
Balance sheet | |||||||||||
Loans and advances to customers | 267,963 | (2.0 | ) | 2.1 | 1.7 | 5.0 | |||||
Cash, central banks and credit institutions | 37,568 | (4.4 | ) | (0.4 | ) | (0.6 | ) | 2.7 | |||
Debt instruments | 16,943 | (16.1 | ) | (12.6 | ) | (28.6 | ) | (26.2 | ) | ||
Other financial assets | 1,103 | 17.0 | 21.9 | 46.3 | 51.1 | ||||||
Other asset accounts | 12,276 | 44.5 | 50.5 | 19.6 | 23.6 | ||||||
Total assets | 335,852 | (1.9 | ) | 2.2 | (0.1 | ) | 3.2 | ||||
Customer deposits | 216,059 | (5.8 | ) | (1.9 | ) | (0.4 | ) | 2.9 | |||
Central banks and credit institutions | 30,219 | 20.5 | 25.6 | 19.7 | 23.7 | ||||||
Marketable debt securities | 64,066 | (0.4 | ) | 3.7 | (5.2 | ) | (2.1 | ) | |||
Other financial liabilities | 3,112 | 16.5 | 21.4 | (29.6 | ) | (27.3 | ) | ||||
Other liabilities accounts | 5,071 | 15.0 | 19.8 | 10.9 | 14.6 | ||||||
Total liabilities | 318,528 | (2.2 | ) | 1.8 | — | 3.2 | |||||
Total equity | 17,324 | 4.3 | 8.6 | (0.6 | ) | 2.7 | |||||
Memorandum items: | |||||||||||
Gross loans and advances to customers (2) | 243,599 | (2.3 | ) | 1.8 | 1.3 | 4.7 | |||||
Customer funds | 210,269 | (4.0 | ) | 0.1 | 0.2 | 3.5 | |||||
Customer deposits (3) | 203,423 | (3.5 | ) | 0.6 | 0.9 | 4.3 | |||||
Mutual funds | 6,846 | (16.7 | ) | (13.2 | ) | (17.3 | ) | (14.6 | ) | ||
Ratios (%) and operating means | |||||||||||
Underlying RoTE | 5.16 | (1.57 | ) | (1.75 | ) | ||||||
Efficiency ratio | 65.0 | 6.7 | 3.8 | ||||||||
NPL ratio | 0.96 | (0.05 | ) | (0.21 | ) | ||||||
NPL coverage | 37.7 | 1.2 | 6.8 | ||||||||
Number of employees | 24,500 | — | (3.9 | ) | |||||||
Number of branches | 615 | (0.2 | ) | (18.4 | ) |
64 | January - March 2020 |
Portugal | |||||||
EUR million | |||||||
/ Q4'19 | / Q1'19 | ||||||
Underlying income statement | Q1'20 | % | % | ||||
Net interest income | 202 | (5.2 | ) | (6.4 | ) | ||
Net fee income | 101 | 3.4 | 3.1 | ||||
Gains (losses) on financial transactions (1) | 56 | 442.4 | 12.8 | ||||
Other operating income | (9 | ) | — | 47.5 | |||
Total income | 350 | 5.6 | (2.0 | ) | |||
Administrative expenses and amortisations | (151 | ) | (3.3 | ) | (4.0 | ) | |
Net operating income | 199 | 13.6 | (0.4 | ) | |||
Net loan-loss provisions | (5 | ) | 31.1 | — | |||
Other gains (losses) and provisions | (21 | ) | — | 6.0 | |||
Profit before tax | 173 | (10.1 | ) | (10.6 | ) | ||
Tax on profit | (53 | ) | 1.6 | (9.0 | ) | ||
Profit from continuing operations | 120 | (14.4 | ) | (11.4 | ) | ||
Net profit from discontinued operations | — | — | — | ||||
Consolidated profit | 120 | (14.4 | ) | (11.4 | ) | ||
Non-controlling interests | — | (44.1 | ) | (18.5 | ) | ||
Underlying attributable profit to the parent | 120 | (14.3 | ) | (11.3 | ) | ||
Balance sheet | |||||||
Loans and advances to customers | 36,366 | 2.7 | 2.7 | ||||
Cash, central banks and credit institutions | 5,138 | 9.9 | 22.5 | ||||
Debt instruments | 11,346 | (9.8 | ) | (14.0 | ) | ||
Other financial assets | 1,552 | (8.5 | ) | (15.7 | ) | ||
Other asset accounts | 1,684 | (4.8 | ) | (14.6 | ) | ||
Total assets | 56,086 | (0.1 | ) | (0.9 | ) | ||
Customer deposits | 38,882 | (1.0 | ) | 1.7 | |||
Central banks and credit institutions | 7,997 | (0.1 | ) | (1.9 | ) | ||
Marketable debt securities | 3,337 | (1.4 | ) | (21.1 | ) | ||
Other financial liabilities | 301 | 8.8 | 5.3 | ||||
Other liabilities accounts | 1,666 | 9.9 | 17.5 | ||||
Total liabilities | 52,183 | (0.5 | ) | (0.3 | ) | ||
Total equity | 3,903 | 5.8 | (9.0 | ) | |||
Memorandum items: | |||||||
Gross loans and advances to customers (2) | 37,286 | 2.7 | 2.2 | ||||
Customer funds | 41,583 | (1.8 | ) | 3.3 | |||
Customer deposits (3) | 38,882 | (1.0 | ) | 1.7 | |||
Mutual funds | 2,700 | (11.9 | ) | 35.0 | |||
Ratios (%) and operating means | |||||||
Underlying RoTE | 12.91 | (1.39 | ) | (0.14 | ) | ||
Efficiency ratio | 43.1 | (4.0 | ) | (0.9 | ) | ||
NPL ratio | 4.56 | (0.27 | ) | (1.21 | ) | ||
NPL coverage | 54.8 | 2.0 | 4.1 | ||||
Number of employees | 6,512 | (1.1 | ) | (3.3 | ) | ||
Number of branches | 529 | (2.4 | ) | (5.7 | ) |
January - March 2020 | 65 |
Poland | |||||||||||
EUR million | |||||||||||
/ | Q4'19 | / | Q1'19 | ||||||||
Underlying income statement | Q1'20 | % | % excl. FX | % | % excl. FX | ||||||
Net interest income | 296 | (3.7 | ) | (2.9 | ) | 5.3 | 5.8 | ||||
Net fee income | 116 | (0.9 | ) | — | 2.6 | 3.1 | |||||
Gains (losses) on financial transactions (1) | 8 | (72.0 | ) | (71.8 | ) | (54.9 | ) | (54.7 | ) | ||
Other operating income | (56 | ) | — | — | 55.5 | 56.2 | |||||
Total income | 365 | (20.5 | ) | (19.9 | ) | (3.3 | ) | (2.8 | ) | ||
Administrative expenses and amortisations | (172 | ) | 1.3 | 2.2 | (0.9 | ) | (0.5 | ) | |||
Net operating income | 193 | (33.3 | ) | (32.8 | ) | (5.3 | ) | (4.8 | ) | ||
Net loan-loss provisions | (68 | ) | 33.5 | 34.6 | 56.5 | 57.2 | |||||
Other gains (losses) and provisions | (36 | ) | 4.8 | 5.7 | 6.8 | 7.2 | |||||
Profit before tax | 90 | (56.3 | ) | (55.9 | ) | (29.4 | ) | (29.1 | ) | ||
Tax on profit | (35 | ) | (33.0 | ) | (32.4 | ) | (6.7 | ) | (6.2 | ) | |
Profit from continuing operations | 55 | (64.2 | ) | (63.9 | ) | (39.0 | ) | (38.7 | ) | ||
Net profit from discontinued operations | — | — | — | — | — | ||||||
Consolidated profit | 55 | (64.2 | ) | (63.9 | ) | (39.0 | ) | (38.7 | ) | ||
Non-controlling interests | (17 | ) | (65.3 | ) | (65.0 | ) | (40.1 | ) | (39.8 | ) | |
Underlying attributable profit to the parent | 38 | (63.7 | ) | (63.4 | ) | (38.4 | ) | (38.2 | ) | ||
Balance sheet | |||||||||||
Loans and advances to customers | 29,220 | (2.7 | ) | 4.0 | 2.8 | 8.8 | |||||
Cash, central banks and credit institutions | 3,547 | 4.4 | 11.6 | 32.8 | 40.5 | ||||||
Debt instruments | 8,574 | (7.7 | ) | (1.3 | ) | (23.9 | ) | (19.4 | ) | ||
Other financial assets | 741 | 17.7 | 25.8 | 36.2 | 44.1 | ||||||
Other asset accounts | 1,334 | (0.5 | ) | 6.4 | 1.9 | 7.8 | |||||
Total assets | 43,417 | (2.8 | ) | 3.9 | (1.8 | ) | 3.9 | ||||
Customer deposits | 31,687 | (5.4 | ) | 1.2 | (2.3 | ) | 3.4 | ||||
Central banks and credit institutions | 2,475 | 6.8 | 14.1 | (26.1 | ) | (21.8 | ) | ||||
Marketable debt securities | 2,360 | 8.7 | 16.2 | 31.6 | 39.2 | ||||||
Other financial liabilities | 826 | 8.4 | 15.9 | 10.2 | 16.7 | ||||||
Other liabilities accounts | 1,217 | 31.9 | 41.0 | 48.5 | 57.2 | ||||||
Total liabilities | 38,565 | (2.8 | ) | 4.0 | (1.5 | ) | 4.2 | ||||
Total equity | 4,852 | (3.5 | ) | 3.1 | (4.1 | ) | 1.5 | ||||
Memorandum items: | |||||||||||
Gross loans and advances to customers (2) | 30,076 | (2.7 | ) | 4.0 | 2.6 | 8.5 | |||||
Customer funds | 34,661 | (8.6 | ) | (2.3 | ) | (1.5 | ) | 4.2 | |||
Customer deposits (3) | 31,673 | (5.4 | ) | 1.1 | 1.8 | 7.7 | |||||
Mutual funds | 2,988 | (32.8 | ) | (28.1 | ) | (26.6 | ) | (22.3 | ) | ||
Ratios (%) and operating means | |||||||||||
Underlying RoTE | 4.73 | (8.60 | ) | (3.03 | ) | ||||||
Efficiency ratio | 47.1 | 10.2 | 1.1 | ||||||||
NPL ratio | 4.29 | (0.02 | ) | (0.10 | ) | ||||||
NPL coverage | 66.2 | (0.6 | ) | (1.4 | ) | ||||||
Number of employees | 11,034 | (0.1 | ) | (12.1 | ) | ||||||
Number of branches | 535 | 3.9 | (6.3 | ) |
66 | January - March 2020 |
Other Europe | |||||||||||
EUR million | |||||||||||
/ | Q4'19 | / | Q1'19 | ||||||||
Underlying income statement | Q1'20 | % | % excl. FX | % | % excl. FX | ||||||
Net interest income | 134 | (13.2 | ) | (13.3 | ) | (3.4 | ) | (3.6 | ) | ||
Net fee income | 74 | 17.3 | 17.3 | 20.1 | 19.0 | ||||||
Gains (losses) on financial transactions (1) | (62 | ) | — | — | — | — | |||||
Other operating income | 55 | (18.5 | ) | (18.6 | ) | (13.1 | ) | (13.1 | ) | ||
Total income | 202 | (29.3 | ) | (29.4 | ) | (22.5 | ) | (23.0 | ) | ||
Administrative expenses and amortisations | (216 | ) | (1.4 | ) | (1.6 | ) | 8.3 | 7.6 | |||
Net operating income | (14 | ) | — | — | — | — | |||||
Net loan-loss provisions | (9 | ) | (61.9 | ) | (61.9 | ) | 294.6 | 294.8 | |||
Other gains (losses) and provisions | (4 | ) | — | — | (33.7 | ) | (33.7 | ) | |||
Profit before tax | (27 | ) | — | — | — | — | |||||
Tax on profit | (1 | ) | (95.6 | ) | (95.6 | ) | (95.2 | ) | (95.2 | ) | |
Profit from continuing operations | (28 | ) | — | — | — | — | |||||
Net profit from discontinued operations | — | — | — | — | — | ||||||
Consolidated profit | (28 | ) | — | — | — | — | |||||
Non-controlling interests | — | — | — | — | — | ||||||
Underlying attributable profit to the parent | (28 | ) | — | — | — | — | |||||
Balance sheet | |||||||||||
Loans and advances to customers | 61,240 | 21.3 | 20.7 | 59.2 | 58.4 | ||||||
Cash, central banks and credit institutions | 52,765 | 13.7 | 13.8 | 5.1 | 5.0 | ||||||
Debt instruments | 18,088 | (27.2 | ) | (27.3 | ) | (19.3 | ) | (19.5 | ) | ||
Other financial assets | 55,945 | 13.7 | 13.7 | 13.4 | 13.3 | ||||||
Other asset accounts | 3,207 | 64.1 | 61.1 | 14.2 | 12.7 | ||||||
Total assets | 191,246 | 10.6 | 10.4 | 17.2 | 16.9 | ||||||
Customer deposits | 21,378 | 17.2 | 16.8 | 5.0 | 4.7 | ||||||
Central banks and credit institutions | 108,792 | 4.6 | 4.4 | 16.0 | 15.7 | ||||||
Marketable debt securities | (185 | ) | — | — | — | — | |||||
Other financial liabilities | 57,827 | 23.8 | 23.8 | 26.8 | 26.8 | ||||||
Other liabilities accounts | 219 | (51.1 | ) | (51.3 | ) | (41.4 | ) | (41.8 | ) | ||
Total liabilities | 188,033 | 11.0 | 10.8 | 17.4 | 17.2 | ||||||
Total equity | 3,213 | (7.4 | ) | (8.4 | ) | 6.0 | 4.8 | ||||
Memorandum items: | |||||||||||
Gross loans and advances to customers (2) | 46,658 | 22.7 | 22.0 | 37.8 | 37.1 | ||||||
Customer funds | 25,585 | 8.9 | 8.7 | 8.8 | 8.5 | ||||||
Customer deposits (3) | 20,518 | 12.7 | 12.5 | 2.4 | 2.1 | ||||||
Mutual funds | 5,067 | (4.2 | ) | (4.2 | ) | 46.0 | 46.0 | ||||
Resources | |||||||||||
Number of employees | 2,546 | 7.2 | 17.4 |
January - March 2020 | 67 |
NORTH AMERICA | |||||||||||
EUR million | |||||||||||
/ | Q4'19 | / | Q1'19 | ||||||||
Underlying income statement | Q1'20 | % | % excl. FX | % | % excl. FX | ||||||
Net interest income | 2,261 | (0.2 | ) | 0.5 | 4.0 | 2.2 | |||||
Net fee income | 461 | 7.9 | 9.1 | 5.0 | 3.5 | ||||||
Gains (losses) on financial transactions (1) | 68 | (17.6 | ) | (16.8 | ) | 464.1 | 441.9 | ||||
Other operating income | 146 | (16.1 | ) | (16.5 | ) | 12.7 | 8.6 | ||||
Total income | 2,936 | (0.4 | ) | 0.2 | 6.6 | 4.7 | |||||
Administrative expenses and amortisations | (1,224 | ) | (6.9 | ) | (6.4 | ) | 4.4 | 2.5 | |||
Net operating income | 1,712 | 4.7 | 5.6 | 8.3 | 6.3 | ||||||
Net loan-loss provisions | (874 | ) | (16.8 | ) | (16.7 | ) | 8.6 | 6.3 | |||
Other gains (losses) and provisions | (14 | ) | (55.4 | ) | (55.5 | ) | (78.3 | ) | (78.8 | ) | |
Profit before tax | 824 | 48.9 | 52.2 | 15.6 | 14.0 | ||||||
Tax on profit | (211 | ) | 60.2 | 63.5 | 12.7 | 10.9 | |||||
Profit from continuing operations | 613 | 45.4 | 48.7 | 16.6 | 15.2 | ||||||
Net profit from discontinued operations | — | — | — | — | — | ||||||
Consolidated profit | 613 | 45.4 | 48.7 | 16.6 | 15.2 | ||||||
Non-controlling interests | (91 | ) | 177.9 | 192.6 | (34.8 | ) | (35.7 | ) | |||
Underlying attributable profit to the parent | 522 | 34.2 | 37.0 | 35.1 | 33.5 | ||||||
Balance sheet | |||||||||||
Loans and advances to customers | 135,826 | 1.6 | 4.8 | 9.2 | 12.2 | ||||||
Cash, central banks and credit institutions | 33,173 | 45.0 | 55.7 | 1.4 | 8.2 | ||||||
Debt instruments | 30,262 | (10.3 | ) | (2.2 | ) | 23.1 | 31.5 | ||||
Other financial assets | 18,150 | 68.7 | 88.1 | 114.4 | 135.4 | ||||||
Other asset accounts | 23,183 | 1.9 | 3.1 | 14.7 | 15.4 | ||||||
Total assets | 240,593 | 7.5 | 12.4 | 14.4 | 18.8 | ||||||
Customer deposits | 117,771 | 19.1 | 25.6 | 17.1 | 22.6 | ||||||
Central banks and credit institutions | 31,082 | (20.2 | ) | (15.9 | ) | 33.0 | 41.7 | ||||
Marketable debt securities | 42,024 | (4.7 | ) | (3.9 | ) | (10.0 | ) | (10.0 | ) | ||
Other financial liabilities | 19,555 | 66.2 | 87.6 | 79.3 | 100.5 | ||||||
Other liabilities accounts | 6,652 | 6.7 | 12.1 | 18.1 | 23.4 | ||||||
Total liabilities | 217,084 | 8.6 | 13.8 | 16.0 | 20.7 | ||||||
Total equity | 23,509 | (1.6 | ) | 1.6 | 1.1 | 3.8 | |||||
Memorandum items: | |||||||||||
Gross loans and advances to customers (2) | 131,913 | 1.0 | 4.3 | 9.4 | 12.5 | ||||||
Customer funds | 119,985 | 5.8 | 11.6 | 9.5 | 15.2 | ||||||
Customer deposits (3) | 101,389 | 9.9 | 14.9 | 13.6 | 18.5 | ||||||
Mutual funds | 18,596 | (12.2 | ) | (3.7 | ) | (8.4 | ) | (0.1 | ) | ||
Ratios (%) and operating means | |||||||||||
Underlying RoTE | 9.92 | 2.52 | 1.47 | ||||||||
Efficiency ratio | 41.7 | (2.9 | ) | (0.9 | ) | ||||||
NPL ratio | 2.02 | (0.18 | ) | (0.31 | ) | ||||||
NPL coverage | 157.6 | 4.6 | 4.2 | ||||||||
Number of employees | 37,398 | (1.2 | ) | 0.7 | |||||||
Number of branches | 2,048 | 0.2 | (1.1 | ) |
68 | January - March 2020 |
United States | |||||||||||
EUR million | |||||||||||
/ | Q4'19 | / | Q1'19 | ||||||||
Underlying income statement | Q1'20 | % | % excl. FX | % | % excl. FX | ||||||
Net interest income | 1,462 | 0.9 | 0.5 | 3.9 | 0.9 | ||||||
Net fee income | 250 | 8.5 | 8.1 | 6.6 | 3.5 | ||||||
Gains (losses) on financial transactions (1) | 46 | 39.0 | 38.4 | 193.1 | 184.5 | ||||||
Other operating income | 170 | (6.2 | ) | (6.5 | ) | 8.1 | 4.9 | ||||
Total income | 1,929 | 1.8 | 1.4 | 6.3 | 3.2 | ||||||
Administrative expenses and amortisations | (809 | ) | (6.9 | ) | (7.4 | ) | 4.3 | 1.3 | |||
Net operating income | 1,120 | 9.2 | 8.9 | 7.8 | 4.6 | ||||||
Net loan-loss provisions | (646 | ) | (22.0 | ) | (22.5 | ) | 5.7 | 2.6 | |||
Other gains (losses) and provisions | (6 | ) | (84.0 | ) | (84.0 | ) | (89.3 | ) | (89.6 | ) | |
Profit before tax | 468 | 195.6 | 199.4 | 26.4 | 22.7 | ||||||
Tax on profit | (124 | ) | 149.4 | 151.7 | 12.0 | 8.7 | |||||
Profit from continuing operations | 344 | 216.7 | 221.2 | 32.6 | 28.7 | ||||||
Net profit from discontinued operations | — | — | — | — | — | ||||||
Consolidated profit | 344 | 216.7 | 221.2 | 32.6 | 28.7 | ||||||
Non-controlling interests | (71 | ) | 571.4 | 617.0 | (9.2 | ) | (11.8 | ) | |||
Underlying attributable profit to the parent | 273 | 178.5 | 180.9 | 50.6 | 46.1 | ||||||
Balance sheet | |||||||||||
Loans and advances to customers | 104,889 | 6.3 | 3.6 | 14.9 | 12.0 | ||||||
Cash, central banks and credit institutions | 19,765 | 54.1 | 50.3 | 9.4 | 6.7 | ||||||
Debt instruments | 15,959 | (4.3 | ) | (6.7 | ) | 18.8 | 15.9 | ||||
Other financial assets | 7,249 | 67.8 | 63.7 | 104.4 | 99.3 | ||||||
Other asset accounts | 19,897 | 5.4 | 2.8 | 17.4 | 14.5 | ||||||
Total assets | 167,759 | 10.8 | 8.1 | 17.1 | 14.1 | ||||||
Customer deposits | 83,705 | 32.1 | 28.8 | 29.1 | 25.9 | ||||||
Central banks and credit institutions | 18,220 | (27.5 | ) | (29.3 | ) | 39.7 | 36.2 | ||||
Marketable debt securities | 36,086 | (2.8 | ) | (5.2 | ) | (11.6 | ) | (13.8 | ) | ||
Other financial liabilities | 7,402 | 78.5 | 74.1 | 103.2 | 98.1 | ||||||
Other liabilities accounts | 4,254 | 3.9 | 1.4 | 15.3 | 12.5 | ||||||
Total liabilities | 149,668 | 11.8 | 9.0 | 18.7 | 15.8 | ||||||
Total equity | 18,091 | 3.1 | 0.5 | 4.8 | 2.2 | ||||||
Memorandum items: | |||||||||||
Gross loans and advances to customers (2) | 101,146 | 5.6 | 3.0 | 15.3 | 12.4 | ||||||
Customer funds | 82,155 | 13.2 | 10.4 | 20.9 | 17.9 | ||||||
Customer deposits (3) | 72,884 | 16.4 | 13.5 | 23.8 | 20.7 | ||||||
Mutual funds | 9,271 | (7.3) | (9.5) | 1.9 | (0.6) | ||||||
Ratios (%) and operating means | |||||||||||
Underlying RoTE | 6.98 | 4.49 | 1.91 | ||||||||
Efficiency ratio | 41.9 | (3.9 | ) | (0.8 | ) | ||||||
NPL ratio | 2.00 | (0.20 | ) | (0.41 | ) | ||||||
NPL coverage | 166.8 | 5.0 | 5.8 | ||||||||
Number of employees | 17,277 | (0.5 | ) | — | |||||||
Number of branches | 619 | (0.3 | ) | (6.1 | ) |
January - March 2020 | 69 |
Mexico | |||||||||||
EUR million | |||||||||||
/ | Q4'19 | / | Q1'19 | ||||||||
Underlying income statement | Q1'20 | % | % excl. FX | % | % excl. FX | ||||||
Net interest income | 798 | (2.1 | ) | 0.5 | 4.2 | 4.7 | |||||
Net fee income | 211 | 7.2 | 10.2 | 3.2 | 3.6 | ||||||
Gains (losses) on financial transactions (1) | 22 | (56.0 | ) | (55.2 | ) | — | — | ||||
Other operating income | (24 | ) | 229.8 | 249.0 | (13.6 | ) | (13.2 | ) | |||
Total income | 1,007 | (4.5 | ) | (1.9 | ) | 7.2 | 7.7 | ||||
Administrative expenses and amortisations | (415 | ) | (6.8 | ) | (4.3 | ) | 4.6 | 5.0 | |||
Net operating income | 592 | (2.8 | ) | (0.2 | ) | 9.2 | 9.7 | ||||
Net loan-loss provisions | (228 | ) | 2.7 | 5.5 | 17.9 | 18.4 | |||||
Other gains (losses) and provisions | (8 | ) | — | — | 38.0 | 38.6 | |||||
Profit before tax | 357 | (9.8 | ) | (7.4 | ) | 3.9 | 4.3 | ||||
Tax on profit | (88 | ) | 6.5 | 9.4 | 13.7 | 14.2 | |||||
Profit from continuing operations | 269 | (14.1 | ) | (11.8 | ) | 1.1 | 1.5 | ||||
Net profit from discontinued operations | — | — | — | — | — | ||||||
Consolidated profit | 269 | (14.1 | ) | (11.8 | ) | 1.1 | 1.5 | ||||
Non-controlling interests | (20 | ) | (10.2 | ) | (6.1 | ) | (67.5 | ) | (67.3 | ) | |
Underlying attributable profit to the parent | 249 | (14.4 | ) | (12.3 | ) | 21.5 | 22.0 | ||||
Balance sheet | |||||||||||
Loans and advances to customers | 30,937 | (11.7 | ) | 9.0 | (6.4 | ) | 12.9 | ||||
Cash, central banks and credit institutions | 13,408 | 33.3 | 64.5 | (8.5 | ) | 10.4 | |||||
Debt instruments | 14,303 | (16.2 | ) | 3.4 | 28.3 | 54.9 | |||||
Other financial assets | 10,901 | 69.3 | 108.8 | 121.7 | 167.5 | ||||||
Other asset accounts | 3,286 | (14.8 | ) | 5.1 | 0.6 | 21.4 | |||||
Total assets | 72,834 | 0.5 | 24.0 | 8.6 | 31.1 | ||||||
Customer deposits | 34,066 | (4.2 | ) | 18.2 | (4.5 | ) | 15.2 | ||||
Central banks and credit institutions | 12,862 | (6.9 | ) | 14.8 | 24.5 | 50.3 | |||||
Marketable debt securities | 5,938 | (14.7 | ) | 5.2 | 1.8 | 22.8 | |||||
Other financial liabilities | 12,152 | 59.5 | 96.8 | 67.3 | 101.9 | ||||||
Other liabilities accounts | 2,398 | 11.8 | 38.0 | 23.5 | 49.0 | ||||||
Total liabilities | 67,416 | 2.0 | 25.8 | 10.4 | 33.3 | ||||||
Total equity | 5,418 | (14.7 | ) | 5.2 | (9.4 | ) | 9.3 | ||||
Memorandum items: | |||||||||||
Gross loans and advances to customers (2) | 30,768 | (11.7 | ) | 8.9 | (6.4 | ) | 13.0 | ||||
Customer funds | 37,830 | (7.3 | ) | 14.4 | (9.1 | ) | 9.7 | ||||
Customer deposits (3) | 28,505 | (3.8 | ) | 18.7 | (6.3 | ) | 13.1 | ||||
Mutual funds | 9,325 | (16.6 | ) | 2.9 | (16.8 | ) | 0.4 | ||||
Ratios (%) and operating means | |||||||||||
Underlying RoTE | 17.96 | (3.13 | ) | (2.15 | ) | ||||||
Efficiency ratio | 41.2 | (1.0 | ) | (1.1 | ) | ||||||
NPL ratio | 2.07 | (0.12 | ) | (0.05 | ) | ||||||
NPL coverage | 128.4 | 0.1 | (1.7 | ) | |||||||
Number of employees | 20,121 | (1.8 | ) | 1.3 | |||||||
Number of branches | 1,429 | 0.5 | 1.2 |
70 | January - March 2020 |
SOUTH AMERICA | |||||||||||
EUR million | |||||||||||
/ | Q4'19 | / | Q1'19 | ||||||||
Underlying income statement | Q1'20 | % | % excl. FX | % | % excl. FX | ||||||
Net interest income | 3,065 | (8.7 | ) | (3.7 | ) | (4.9 | ) | 10.8 | |||
Net fee income | 1,074 | (12.6 | ) | (8.1 | ) | (8.8 | ) | 6.8 | |||
Gains (losses) on financial transactions (1) | 68 | (46.1 | ) | (44.8 | ) | (57.5 | ) | (48.4 | ) | ||
Other operating income | (43 | ) | — | 559.4 | (40.1 | ) | (22.9 | ) | |||
Total income | 4,163 | (11.7 | ) | (6.8 | ) | (7.2 | ) | 8.2 | |||
Administrative expenses and amortisations | (1,486 | ) | (15.6 | ) | (11.6 | ) | (9.7 | ) | 6.6 | ||
Net operating income | 2,677 | (9.3 | ) | (3.8 | ) | (5.8 | ) | 9.1 | |||
Net loan-loss provisions | (875 | ) | (13.8 | ) | (8.4 | ) | (3.1 | ) | 13.1 | ||
Other gains (losses) and provisions | (142 | ) | (43.2 | ) | (39.7 | ) | (8.1 | ) | 8.2 | ||
Profit before tax | 1,661 | (1.6 | ) | 4.2 | (7.0 | ) | 7.1 | ||||
Tax on profit | (603 | ) | 3.7 | 9.7 | (12.8 | ) | 0.6 | ||||
Profit from continuing operations | 1,057 | (4.4 | ) | 1.3 | (3.2 | ) | 11.3 | ||||
Net profit from discontinued operations | — | — | — | — | — | ||||||
Consolidated profit | 1,057 | (4.4 | ) | 1.3 | (3.2 | ) | 11.3 | ||||
Non-controlling interests | (130 | ) | (18.6 | ) | (13.1 | ) | (22.4 | ) | (10.4 | ) | |
Underlying attributable profit to the parent | 928 | (2.1 | ) | 3.8 | 0.2 | 15.2 | |||||
Balance sheet | |||||||||||
Loans and advances to customers | 113,261 | (9.5 | ) | 7.9 | (8.2 | ) | 16.9 | ||||
Cash, central banks and credit institutions | 45,888 | (10.7 | ) | 8.2 | 3.3 | 34.4 | |||||
Debt instruments | 44,696 | (2.0 | ) | 21.4 | (2.8 | ) | 25.7 | ||||
Other financial assets | 19,260 | 30.1 | 52.4 | 114.9 | 173.6 | ||||||
Other asset accounts | 17,137 | 1.4 | 23.0 | 8.8 | 40.3 | ||||||
Total assets | 240,240 | (5.3 | ) | 14.0 | 0.8 | 29.3 | |||||
Customer deposits | 106,432 | (7.3 | ) | 11.2 | (4.5 | ) | 22.7 | ||||
Central banks and credit institutions | 45,699 | 8.8 | 31.7 | 17.8 | 50.5 | ||||||
Marketable debt securities | 26,951 | (9.7 | ) | 8.3 | (13.1 | ) | 10.6 | ||||
Other financial liabilities | 33,522 | (1.6 | ) | 18.9 | 29.4 | 67.2 | |||||
Other liabilities accounts | 8,529 | (19.6 | ) | (1.4 | ) | (4.2 | ) | 23.8 | |||
Total liabilities | 221,134 | (4.4 | ) | 15.1 | 2.3 | 31.3 | |||||
Total equity | 19,106 | (15.0 | ) | 2.7 | (14.4 | ) | 9.7 | ||||
Memorandum items: | |||||||||||
Gross loans and advances to customers (2) | 117,614 | (10.3 | ) | 7.1 | (8.9 | ) | 16.1 | ||||
Customer funds | 148,102 | (13.2 | ) | 5.0 | (9.7 | ) | 16.3 | ||||
Customer deposits (3) | 95,933 | (5.6 | ) | 12.6 | (3.6 | ) | 23.8 | ||||
Mutual funds | 52,169 | (24.5 | ) | (6.6 | ) | (19.1 | ) | 4.6 | |||
Ratios (%) and operating means | |||||||||||
Underlying RoTE | 21.12 | 1.36 | 1.54 | ||||||||
Efficiency ratio | 35.7 | (1.7 | ) | (1.0 | ) | ||||||
NPL ratio | 4.63 | (0.23 | ) | (0.20 | ) | ||||||
NPL coverage | 86.3 | (2.1 | ) | (7.8 | ) | ||||||
Number of employees | 68,624 | (1.3 | ) | (1.9 | ) | ||||||
Number of branches | 4,524 | (1.0 | ) | 0.3 |
January - March 2020 | 71 |
Brazil | |||||||||||
EUR million | |||||||||||
/ | Q4'19 | / | Q1'19 | ||||||||
Underlying income statement | Q1'20 | % | % excl. FX | % | % excl. FX | ||||||
Net interest income | 2,270 | (10.4 | ) | (3.8 | ) | (7.7 | ) | 5.6 | |||
Net fee income | 869 | (10.7 | ) | (4.0 | ) | (6.6 | ) | 6.8 | |||
Gains (losses) on financial transactions (1) | 14 | (45.7 | ) | (43.2 | ) | (76.0 | ) | (72.6 | ) | ||
Other operating income | (17 | ) | — | — | (54.3 | ) | (47.7 | ) | |||
Total income | 3,137 | (12.0 | ) | (5.4 | ) | (8.0 | ) | 5.1 | |||
Administrative expenses and amortisations | (1,004 | ) | (19.2 | ) | (12.9 | ) | (10.8 | ) | 2.0 | ||
Net operating income | 2,133 | (8.2 | ) | (1.4 | ) | (6.7 | ) | 6.7 | |||
Net loan-loss provisions | (709 | ) | (12.8 | ) | (6.1 | ) | (0.2 | ) | 14.1 | ||
Other gains (losses) and provisions | (127 | ) | (38.1 | ) | (33.2 | ) | (24.2 | ) | (13.3 | ) | |
Profit before tax | 1,298 | (0.6 | ) | 6.4 | (7.9 | ) | 5.3 | ||||
Tax on profit | (529 | ) | 0.1 | 7.1 | (10.6 | ) | 2.2 | ||||
Profit from continuing operations | 768 | (1.1 | ) | 5.9 | (5.9 | ) | 7.6 | ||||
Net profit from discontinued operations | — | — | — | — | — | ||||||
Consolidated profit | 768 | (1.1 | ) | 5.9 | (5.9 | ) | 7.6 | ||||
Non-controlling interests | (74 | ) | (14.8 | ) | (8.8 | ) | (22.3 | ) | (11.2 | ) | |
Underlying attributable profit to the parent | 694 | 0.7 | 7.8 | (3.7 | ) | 10.1 | |||||
Balance sheet | |||||||||||
Loans and advances to customers | 65,970 | (12.8 | ) | 10.1 | (8.0 | ) | 19.5 | ||||
Cash, central banks and credit institutions | 30,070 | (19.7 | ) | 1.3 | (9.8 | ) | 17.2 | ||||
Debt instruments | 37,932 | (4.2 | ) | 20.9 | (7.6 | ) | 20.1 | ||||
Other financial assets | 5,885 | (13.3 | ) | 9.4 | 3.8 | 34.8 | |||||
Other asset accounts | 12,410 | (1.1 | ) | 24.9 | 4.7 | 36.0 | |||||
Total assets | 152,267 | (11.5 | ) | 11.7 | (6.9 | ) | 20.9 | ||||
Customer deposits | 64,578 | (13.6 | ) | 9.1 | (8.1 | ) | 19.4 | ||||
Central banks and credit institutions | 32,941 | 8.6 | 37.1 | 11.0 | 44.3 | ||||||
Marketable debt securities | 16,278 | (14.1 | ) | 8.4 | (18.6 | ) | 5.8 | ||||
Other financial liabilities | 19,126 | (18.9 | ) | 2.3 | (10.1 | ) | 16.8 | ||||
Other liabilities accounts | 6,654 | (22.9 | ) | (2.7 | ) | (8.0 | ) | 19.6 | |||
Total liabilities | 139,577 | (10.7 | ) | 12.8 | (6.0 | ) | 22.2 | ||||
Total equity | 12,689 | (19.6 | ) | 1.5 | (16.5 | ) | 8.5 | ||||
Memorandum items: | |||||||||||
Gross loans and advances to customers (2) | 69,041 | (13.9 | ) | 8.7 | (9.6 | ) | 17.5 | ||||
Customer funds | 98,212 | (19.3 | ) | 1.8 | (13.7 | ) | 12.2 | ||||
Customer deposits (3) | 54,244 | (12.2 | ) | 10.8 | (7.1 | ) | 20.8 | ||||
Mutual funds | 43,969 | (26.7 | ) | (7.4 | ) | (20.6 | ) | 3.1 | |||
Ratios (%) and operating means | |||||||||||
Underlying RoTE | 22.04 | 2.29 | 1.06 | ||||||||
Efficiency ratio | 32.0 | (2.8 | ) | (1.0 | ) | ||||||
NPL ratio | 4.93 | (0.39 | ) | (0.33 | ) | ||||||
NPL coverage | 99.9 | 0.1 | (7.8 | ) | |||||||
Number of employees | 45,807 | (1.9 | ) | (2.1 | ) | ||||||
Number of branches | 3,617 | (1.1 | ) | 1.5 |
72 | January - March 2020 |
Chile | |||||||||||
EUR million | |||||||||||
/ | Q4'19 | / | Q1'19 | ||||||||
Underlying income statement | Q1'20 | % | % excl. FX | % | % excl. FX | ||||||
Net interest income | 448 | (3.5 | ) | 2.8 | 1.8 | 19.1 | |||||
Net fee income | 92 | (9.9 | ) | (3.9 | ) | (10.4 | ) | 4.8 | |||
Gains (losses) on financial transactions (1) | 13 | (81.5 | ) | (80.2 | ) | (75.5 | ) | (71.3 | ) | ||
Other operating income | (1 | ) | 2.8 | 23.6 | — | — | |||||
Total income | 553 | (13.4 | ) | (7.7 | ) | (7.8 | ) | 7.8 | |||
Administrative expenses and amortisations | (230 | ) | (6.5 | ) | (0.7 | ) | (9.8 | ) | 5.6 | ||
Net operating income | 322 | (17.8 | ) | (12.1 | ) | (6.4 | ) | 9.5 | |||
Net loan-loss provisions | (107 | ) | (17.6 | ) | (11.2 | ) | 4.2 | 21.9 | |||
Other gains (losses) and provisions | 1 | (93.0 | ) | (92.7 | ) | (97.8 | ) | (97.4 | ) | ||
Profit before tax | 216 | (21.1 | ) | (16.1 | ) | (22.6 | ) | (9.4 | ) | ||
Tax on profit | (37 | ) | (19.2 | ) | (14.8 | ) | (39.2 | ) | (28.8 | ) | |
Profit from continuing operations | 180 | (21.5 | ) | (16.4 | ) | (18.0 | ) | (4.1 | ) | ||
Net profit from discontinued operations | — | — | — | — | — | ||||||
Consolidated profit | 180 | (21.5 | ) | (16.4 | ) | (18.0 | ) | (4.1 | ) | ||
Non-controlling interests | (55 | ) | (23.6 | ) | (18.6 | ) | (22.5 | ) | (9.3 | ) | |
Underlying attributable profit to the parent | 125 | (20.6 | ) | (15.4 | ) | (15.9 | ) | (1.6 | ) | ||
Balance sheet | |||||||||||
Loans and advances to customers | 36,595 | (5.2 | ) | 4.8 | (7.7 | ) | 12.8 | ||||
Cash, central banks and credit institutions | 9,322 | 23.4 | 36.3 | 132.7 | 184.6 | ||||||
Debt instruments | 3,850 | (24.0 | ) | (16.0 | ) | 1.8 | 24.5 | ||||
Other financial assets | 13,176 | 67.7 | 85.4 | 316.2 | 408.8 | ||||||
Other asset accounts | 3,429 | 10.9 | 22.6 | 17.9 | 44.2 | ||||||
Total assets | 66,372 | 6.8 | 18.0 | 24.0 | 51.6 | ||||||
Customer deposits | 27,205 | (0.5 | ) | 10.0 | 1.7 | 24.4 | |||||
Central banks and credit institutions | 9,243 | 12.4 | 24.2 | 54.5 | 88.9 | ||||||
Marketable debt securities | 10,475 | (2.3 | ) | 8.0 | (2.1 | ) | 19.7 | ||||
Other financial liabilities | 13,661 | 41.4 | 56.3 | 266.2 | 347.8 | ||||||
Other liabilities accounts | 1,202 | (7.1 | ) | 2.7 | 13.4 | 38.7 | |||||
Total liabilities | 61,786 | 7.9 | 19.3 | 28.1 | 56.7 | ||||||
Total equity | 4,587 | (6.5 | ) | 3.3 | (13.4 | ) | 5.9 | ||||
Memorandum items: | |||||||||||
Gross loans and advances to customers (2) | 37,550 | (5.3 | ) | 4.7 | (8.0 | ) | 12.5 | ||||
Customer funds | 33,939 | (3.3 | ) | 6.9 | (0.7 | ) | 21.5 | ||||
Customer deposits (3) | 27,041 | (0.1 | ) | 10.4 | 1.3 | 23.9 | |||||
Mutual funds | 6,898 | (14.1 | ) | (5.1 | ) | (7.8 | ) | 12.7 | |||
Ratios (%) and operating means | |||||||||||
Underlying RoTE | 15.15 | (3.41 | ) | (1.20 | ) | ||||||
Efficiency ratio | 41.7 | 3.1 | (0.9 | ) | |||||||
NPL ratio | 4.63 | (0.01 | ) | (0.04 | ) | ||||||
NPL coverage | 54.3 | (1.7 | ) | (5.4 | ) | ||||||
Number of employees | 11,437 | (1.2 | ) | (3.8 | ) | ||||||
Number of branches | 366 | (2.4 | ) | (3.7 | ) |
January - March 2020 | 73 |
Argentina | |||||||||||
EUR million | |||||||||||
/ | Q4'19 | / | Q1'19 | ||||||||
Underlying income statement | Q1'20 | % | % excl. FX | % | % excl. FX | ||||||
Net interest income | 241 | (3.5 | ) | (14.7 | ) | 13.0 | 68.0 | ||||
Net fee income | 76 | (35.8 | ) | (43.3 | ) | (34.7 | ) | (2.9 | ) | ||
Gains (losses) on financial transactions (1) | 23 | 45.7 | 19.8 | (38.4 | ) | (8.5 | ) | ||||
Other operating income | (22 | ) | (10.1 | ) | (30.2 | ) | (38.3 | ) | (8.2 | ) | |
Total income | 318 | (11.5 | ) | (21.3 | ) | (4.0 | ) | 42.7 | |||
Administrative expenses and amortisations | (186 | ) | (11.2 | ) | (20.9 | ) | (8.1 | ) | 36.5 | ||
Net operating income | 132 | (11.9 | ) | (21.9 | ) | 2.5 | 52.3 | ||||
Net loan-loss provisions | (39 | ) | (26.0 | ) | (37.0 | ) | (45.9 | ) | (19.6 | ) | |
Other gains (losses) and provisions | (14 | ) | (74.9 | ) | (75.1 | ) | (39.9 | ) | (10.7 | ) | |
Profit before tax | 79 | 84.5 | 51.7 | 135.4 | 249.8 | ||||||
Tax on profit | (20 | ) | — | — | (13.9 | ) | 28.0 | ||||
Profit from continuing operations | 59 | 24.6 | 14.7 | 464.8 | 739.5 | ||||||
Net profit from discontinued operations | — | — | — | — | — | ||||||
Consolidated profit | 59 | 24.6 | 14.7 | 464.8 | 739.5 | ||||||
Non-controlling interests | — | (12.5 | ) | (21.9 | ) | 185.0 | 323.7 | ||||
Underlying attributable profit to the parent | 59 | 24.9 | 15.1 | 468.6 | 745.1 | ||||||
Balance sheet | |||||||||||
Loans and advances to customers | 4,521 | (5.7 | ) | (1.0 | ) | (25.6 | ) | 7.9 | |||
Cash, central banks and credit institutions | 3,395 | (13.2 | ) | (9.0 | ) | (29.5 | ) | 2.1 | |||
Debt instruments | 2,226 | 419.3 | 444.7 | 420.4 | 654.5 | ||||||
Other financial assets | 77 | (11.9 | ) | (7.6 | ) | (32.6 | ) | (2.3 | ) | ||
Other asset accounts | 824 | (1.5 | ) | 3.4 | 1.7 | 47.4 | |||||
Total assets | 11,042 | 9.8 | 15.2 | (9.8 | ) | 30.8 | |||||
Customer deposits | 8,305 | 18.6 | 24.4 | (5.8 | ) | 36.6 | |||||
Central banks and credit institutions | 686 | (33.5 | ) | (30.3 | ) | (28.8 | ) | 3.2 | |||
Marketable debt securities | 87 | 22.7 | 28.7 | (64.8 | ) | (48.9 | ) | ||||
Other financial liabilities | 631 | (15.4 | ) | (11.3 | ) | (25.9 | ) | 7.4 | |||
Other liabilities accounts | 388 | (1.2 | ) | 3.7 | (1.9 | ) | 42.2 | ||||
Total liabilities | 10,097 | 9.2 | 14.6 | (10.4 | ) | 29.8 | |||||
Total equity | 945 | 16.6 | 22.3 | (2.5 | ) | 41.3 | |||||
Memorandum items: | |||||||||||
Gross loans and advances to customers (2) | 4,724 | (5.4 | ) | (0.8 | ) | (20.0 | ) | 15.9 | |||
Customer funds | 9,569 | 18.2 | 23.9 | (7.9 | ) | 33.6 | |||||
Customer deposits (3) | 8,305 | 18.6 | 24.4 | (5.8 | ) | 36.6 | |||||
Mutual funds | 1,264 | 15.3 | 20.9 | (19.4 | ) | 16.9 | |||||
Ratios (%) and operating means | |||||||||||
Underlying RoTE | 30.06 | (1.61 | ) | 24.98 | |||||||
Efficiency ratio | 58.5 | 0.2 | (2.6 | ) | |||||||
NPL ratio | 3.97 | 0.58 | 0.47 | ||||||||
NPL coverage | 112.5 | (11.5 | ) | (6.1 | ) | ||||||
Number of employees | 9,290 | 1.2 | 0.2 | ||||||||
Number of branches | 438 | — | (6.4 | ) |
74 | January - March 2020 |
Other South America | |||||||||||
EUR million | |||||||||||
/ | Q4'19 | / | Q1'19 | ||||||||
Underlying income statement | Q1'20 | % | % excl. FX | % | % excl. FX | ||||||
Net interest income | 106 | (2.2 | ) | 1.4 | (3.1 | ) | 9.4 | ||||
Net fee income | 37 | 6.8 | 10.9 | 28.1 | 44.7 | ||||||
Gains (losses) on financial transactions (1) | 18 | 44.1 | 47.3 | 72.2 | 89.5 | ||||||
Other operating income | (4 | ) | 63.7 | 69.7 | 60.0 | 84.2 | |||||
Total income | 157 | 2.6 | 6.3 | 7.3 | 20.9 | ||||||
Administrative expenses and amortisations | (66 | ) | 2.6 | 6.2 | 5.0 | 18.7 | |||||
Net operating income | 91 | 2.6 | 6.3 | 9.1 | 22.6 | ||||||
Net loan-loss provisions | (21 | ) | 3.9 | 10.3 | 14.2 | 28.9 | |||||
Other gains (losses) and provisions | (2 | ) | (15.7 | ) | (10.0 | ) | 27.6 | 48.4 | |||
Profit before tax | 68 | 2.9 | 5.7 | 7.2 | 20.2 | ||||||
Tax on profit | (17 | ) | 41.1 | 40.9 | 6.5 | 18.5 | |||||
Profit from continuing operations | 51 | (5.9 | ) | (2.6 | ) | 7.5 | 20.8 | ||||
Net profit from discontinued operations | — | — | — | — | — | ||||||
Consolidated profit | 51 | (5.9 | ) | (2.6 | ) | 7.5 | 20.8 | ||||
Non-controlling interests | — | (100.0 | ) | (100.0 | ) | — | — | ||||
Underlying attributable profit to the parent | 51 | (6.3 | ) | (3.1 | ) | 8.4 | 22.0 | ||||
Balance sheet | |||||||||||
Loans and advances to customers | 6,175 | 0.8 | 11.0 | 5.4 | 22.6 | ||||||
Cash, central banks and credit institutions | 3,101 | 28.0 | 43.5 | 36.6 | 64.6 | ||||||
Debt instruments | 688 | 33.1 | 51.9 | (6.5 | ) | 15.6 | |||||
Other financial assets | 122 | 74.9 | 78.0 | — | — | ||||||
Other asset accounts | 474 | 10.5 | 16.9 | 162.9 | 216.3 | ||||||
Total assets | 10,560 | 10.4 | 22.1 | 16.6 | 37.6 | ||||||
Customer deposits | 6,344 | 10.8 | 24.5 | 11.8 | 35.2 | ||||||
Central banks and credit institutions | 2,829 | 17.9 | 25.9 | 29.1 | 43.0 | ||||||
Marketable debt securities | 112 | 17.5 | 18.9 | 87.9 | 89.7 | ||||||
Other financial liabilities | 104 | 60.9 | 77.6 | 117.5 | 169.9 | ||||||
Other liabilities accounts | 286 | (3.6 | ) | 7.3 | 28.7 | 54.2 | |||||
Total liabilities | 9,674 | 12.8 | 24.6 | 18.0 | 39.1 | ||||||
Total equity | 886 | (10.1 | ) | (0.5 | ) | 3.0 | 23.0 | ||||
Memorandum items: | |||||||||||
Gross loans and advances to customers (2) | 6,299 | 0.6 | 10.8 | 5.0 | 22.2 | ||||||
Customer funds | 6,382 | 10.8 | 24.5 | 11.8 | 35.2 | ||||||
Customer deposits (3) | 6,344 | 10.8 | 24.5 | 11.8 | 35.2 | ||||||
Mutual funds | 38 | 5.5 | 20.6 | 14.3 | 45.5 | ||||||
Resources | |||||||||||
Number of employees | 2,090 | 1.1 | 3.4 |
January - March 2020 | 75 |
SANTANDER GLOBAL PLATFORM (primary segment) | |||||||||||
EUR million | |||||||||||
Underlying income statement | Q1'20 | Q4'19 | % | Q1'19 | % | ||||||
Net interest income | 31 | 23 | 36.2 | 22 | 38.3 | ||||||
Net fee income | 13 | 2 | 548.5 | 2 | 747.6 | ||||||
Gains (losses) on financial transactions (1) | — | (3 | ) | — | (1 | ) | — | ||||
Other operating income | 1 | (3 | ) | — | (4 | ) | — | ||||
Total income | 45 | 18 | 149.8 | 19 | 142.0 | ||||||
Administrative expenses and amortisations | (71 | ) | (72 | ) | (1.6 | ) | (41 | ) | 72.4 | ||
Net operating income | (26 | ) | (54 | ) | (52.6 | ) | (22 | ) | 14.2 | ||
Net loan-loss provisions | — | — | 13.0 | — | 213.0 | ||||||
Other gains (losses) and provisions | (1 | ) | (4 | ) | (75.4 | ) | (1 | ) | 57.4 | ||
Profit before tax | (27 | ) | (58 | ) | (53.7 | ) | (23 | ) | 16.7 | ||
Tax on profit | 14 | 16 | (9.9 | ) | 12 | 14.2 | |||||
Profit from continuing operations | (13 | ) | (43 | ) | (69.5 | ) | (11 | ) | 19.5 | ||
Net profit from discontinued operations | — | — | — | — | — | ||||||
Consolidated profit | (13 | ) | (43 | ) | (69.5 | ) | (11 | ) | 19.5 | ||
Non-controlling interests | — | — | — | — | — | ||||||
Underlying attributable profit to the parent | (13 | ) | (43 | ) | (70.0 | ) | (11 | ) | 17.6 | ||
Balance sheet | |||||||||||
Loans and advances to customers | 791 | 702 | 12.6 | 417 | 89.8 | ||||||
Cash, central banks and credit institutions | 9,423 | 9,063 | 4.0 | 8,673 | 8.6 | ||||||
Debt instruments | 10 | 10 | 2.2 | — | — | ||||||
Other financial assets | 205 | 187 | 9.7 | 152 | 34.9 | ||||||
Other asset accounts | 318 | 272 | 16.8 | 129 | 147.2 | ||||||
Total assets | 10,747 | 10,234 | 5.0 | 9,370 | 14.7 | ||||||
Customer deposits | 9,674 | 9,460 | 2.3 | 8,804 | 9.9 | ||||||
Central banks and credit institutions | 144 | 82 | 75.8 | 75 | 92.0 | ||||||
Marketable debt securities | — | — | — | — | — | ||||||
Other financial liabilities | 134 | 105 | 27.5 | 41 | 230.9 | ||||||
Other liabilities accounts | 98 | 112 | (12.4 | ) | 60 | 62.9 | |||||
Total liabilities | 10,051 | 9,760 | 3.0 | 8,980 | 11.9 | ||||||
Total equity | 696 | 474 | 46.9 | 390 | 78.2 | ||||||
Memorandum items: | |||||||||||
Gross loans and advances to customers (2) | 794 | 706 | 12.5 | 420 | 89.1 | ||||||
Customer funds | 10,127 | 9,910 | 2.2 | 9,183 | 10.3 | ||||||
Customer deposits (3) | 9,674 | 9,460 | 2.3 | 8,804 | 9.9 | ||||||
Mutual funds | 453 | 450 | 0.7 | 379 | 19.7 | ||||||
Resources | |||||||||||
Number of employees | 1,424 | 820 | 73.7 | 545 | 161.3 |
76 | January - March 2020 |
CORPORATE CENTRE | |||||||||||
EUR million | |||||||||||
Underlying income statement | Q1'20 | Q4'19 | % | Q1'19 | % | ||||||
Net interest income | (304 | ) | (333 | ) | (8.6 | ) | (296 | ) | 2.8 | ||
Net fee income | (9 | ) | (15 | ) | (37.5 | ) | (14 | ) | (32.9 | ) | |
Gains (losses) on financial transactions (1) | 14 | (39 | ) | — | (79 | ) | — | ||||
Other operating income | (5 | ) | 5 | — | (11 | ) | (56.6 | ) | |||
Total income | (304 | ) | (381 | ) | (20.2 | ) | (399 | ) | (23.8 | ) | |
Administrative expenses and amortisations | (85 | ) | (89 | ) | (5.2 | ) | (97 | ) | (12.9 | ) | |
Net operating income | (389 | ) | (471 | ) | (17.4 | ) | (497 | ) | (21.6 | ) | |
Net loan-loss provisions | (3 | ) | (10 | ) | (64.5 | ) | (8 | ) | (55.6 | ) | |
Other gains (losses) and provisions | (20 | ) | (49 | ) | (58.2 | ) | (55 | ) | (62.9 | ) | |
Profit before tax | (413 | ) | (529 | ) | (22.0 | ) | (559 | ) | (26.2 | ) | |
Tax on profit | (21 | ) | 71 | — | 33 | — | |||||
Profit from continuing operations | (434 | ) | (458 | ) | (5.3 | ) | (526 | ) | (17.5 | ) | |
Net profit from discontinued operations | — | — | — | — | — | ||||||
Consolidated profit | (434 | ) | (458 | ) | (5.3 | ) | (526 | ) | (17.5 | ) | |
Non-controlling interests | — | (1 | ) | — | 10 | (99.8 | ) | ||||
Underlying attributable profit to the parent | (434 | ) | (459 | ) | (5.5 | ) | (517 | ) | (16.0 | ) | |
Balance sheet | |||||||||||
Loans and advances to customers | 4,454 | 5,764 | (22.7 | ) | 6,139 | (27.4 | ) | ||||
Cash, central banks and credit institutions | 46,836 | 32,803 | 42.8 | 26,755 | 75.1 | ||||||
Debt instruments | 1,292 | 840 | 53.9 | 954 | 35.4 | ||||||
Other financial assets | 3,745 | 2,406 | 55.7 | 2,207 | 69.7 | ||||||
Other asset accounts | 131,526 | 126,539 | 3.9 | 132,551 | (0.8 | ) | |||||
Total assets | 187,853 | 168,352 | 11.6 | 168,605 | 11.4 | ||||||
Customer deposits | 740 | 793 | (6.7 | ) | 163 | 355.0 | |||||
Central banks and credit institutions | 27,484 | 12,254 | 124.3 | 16,921 | 62.4 | ||||||
Marketable debt securities | 56,906 | 54,495 | 4.4 | 43,441 | 31.0 | ||||||
Other financial liabilities | 803 | 636 | 26.2 | 2,321 | (65.4 | ) | |||||
Other liabilities accounts | 8,917 | 9,810 | (9.1 | ) | 8,356 | 6.7 | |||||
Total liabilities | 94,849 | 77,989 | 21.6 | 71,201 | 33.2 | ||||||
Total equity | 93,004 | 90,362 | 2.9 | 97,404 | (4.5 | ) | |||||
Memorandum items: | |||||||||||
Gross loans and advances to customers (2) | 6,135 | 5,859 | 4.7 | 6,414 | (4.4 | ) | |||||
Customer funds | 751 | 804 | (6.6 | ) | 176 | 327.9 | |||||
Customer deposits (3) | 740 | 793 | (6.7 | ) | 163 | 355.0 | |||||
Mutual funds | 11 | 11 | 0.3 | 13 | (16.9 | ) | |||||
Resources | |||||||||||
Number of employees | 1,697 | 1,651 | 2.8 | 1,757 | (3.4 | ) |
January - March 2020 | 77 |
RETAIL BANKING | |||||||||||
EUR million | |||||||||||
/ | Q4'19 | / | Q1'19 | ||||||||
Underlying income statement | Q1'20 | % | % excl. FX | % | % excl. FX | ||||||
Net interest income | 7,885 | (4.2 | ) | (1.9 | ) | (2.5 | ) | 2.2 | |||
Net fee income | 2,024 | (5.5 | ) | (3.1 | ) | (7.1 | ) | (1.3 | ) | ||
Gains (losses) on financial transactions (1) | 50 | (84.1 | ) | (84.1 | ) | (31.3 | ) | (34.9 | ) | ||
Other operating income | 13 | (51.6 | ) | (35.6 | ) | (83.0 | ) | (87.1 | ) | ||
Total income | 9,972 | (6.9 | ) | (4.7 | ) | (4.2 | ) | 0.3 | |||
Administrative expenses and amortisations | (4,526 | ) | (6.2 | ) | (4.6 | ) | (3.6 | ) | 0.6 | ||
Net operating income | 5,445 | (7.4 | ) | (4.8 | ) | (4.8 | ) | — | |||
Net loan-loss provisions | (2,289 | ) | (6.1 | ) | (3.8 | ) | 6.8 | 12.7 | |||
Other gains (losses) and provisions | (338 | ) | (25.7 | ) | (23.5 | ) | (13.6 | ) | (8.8 | ) | |
Profit before tax | 2,818 | (5.7 | ) | (2.7 | ) | (11.5 | ) | (7.4 | ) | ||
Tax on profit | (919 | ) | 6.0 | 9.7 | (13.7 | ) | (8.2 | ) | |||
Profit from continuing operations | 1,899 | (10.5 | ) | (7.8 | ) | (10.4 | ) | (7.0 | ) | ||
Net profit from discontinued operations | — | — | — | — | — | ||||||
Consolidated profit | 1,899 | (10.5 | ) | (7.8 | ) | (10.4 | ) | (7.0 | ) | ||
Non-controlling interests | (262 | ) | (0.4 | ) | 3.1 | (26.4 | ) | (23.3 | ) | ||
Underlying attributable profit to the parent | 1,637 | (11.9 | ) | (9.3 | ) | (7.2 | ) | (3.7 | ) |
CORPORATE & INVESTMENT BANKING | |||||||||||
EUR million | |||||||||||
/ | Q4'19 | / | Q1'19 | ||||||||
Underlying income statement | Q1'20 | % | % excl. FX | % | % excl. FX | ||||||
Net interest income | 671 | (6.3 | ) | (5.1 | ) | 2.6 | 8.6 | ||||
Net fee income | 404 | 8.4 | 10.2 | 14.8 | 20.2 | ||||||
Gains (losses) on financial transactions (1) | 165 | (39.6 | ) | (38.7 | ) | (23.7 | ) | (12.0 | ) | ||
Other operating income | 60 | (5.1 | ) | (5.6 | ) | 8.3 | 7.3 | ||||
Total income | 1,300 | (8.8 | ) | (7.6 | ) | 1.8 | 8.6 | ||||
Administrative expenses and amortisations | (536 | ) | (11.9 | ) | (11.0 | ) | (4.4 | ) | (1.0 | ) | |
Net operating income | 764 | (6.5 | ) | (5.0 | ) | 6.6 | 16.5 | ||||
Net loan-loss provisions | (4 | ) | (96.6 | ) | (96.5 | ) | (53.5 | ) | (48.6 | ) | |
Other gains (losses) and provisions | (15 | ) | (52.8 | ) | (52.1 | ) | (31.0 | ) | (29.5 | ) | |
Profit before tax | 745 | 13.3 | 15.2 | 8.6 | 19.0 | ||||||
Tax on profit | (218 | ) | 4.4 | 6.3 | 7.9 | 18.8 | |||||
Profit from continuing operations | 527 | 17.4 | 19.4 | 8.9 | 19.1 | ||||||
Net profit from discontinued operations | — | — | — | — | — | ||||||
Consolidated profit | 527 | 17.4 | 19.4 | 8.9 | 19.1 | ||||||
Non-controlling interests | (36 | ) | (7.4 | ) | (2.6 | ) | (14.7 | ) | (6.0 | ) | |
Underlying attributable profit to the parent | 491 | 19.8 | 21.3 | 11.2 | 21.4 |
78 | January - March 2020 |
WEALTH MANAGEMENT & INSURANCE | |||||||||||
EUR million | |||||||||||
/ | Q4'19 | / | Q1'19 | ||||||||
Underlying income statement | Q1'20 | % | % excl. FX | % | % excl. FX | ||||||
Net interest income | 132 | (9.0 | ) | (8.9 | ) | (5.7 | ) | (3.5 | ) | ||
Net fee income | 320 | (2.9 | ) | (1.3 | ) | 17.2 | 20.2 | ||||
Gains (losses) on financial transactions (1) | 21 | 73.7 | 77.3 | (37.0 | ) | (35.1 | ) | ||||
Other operating income | 113 | 11.3 | 15.2 | 48.1 | 56.5 | ||||||
Total income | 586 | (0.4 | ) | 1.2 | 12.1 | 15.4 | |||||
Administrative expenses and amortisations | (244 | ) | 0.1 | 0.9 | 1.0 | 2.2 | |||||
Net operating income | 342 | (0.8 | ) | 1.4 | 21.5 | 27.1 | |||||
Net loan-loss provisions | (7 | ) | — | — | — | — | |||||
Other gains (losses) and provisions | (1 | ) | (70.9 | ) | (70.1 | ) | (50.7 | ) | (48.1 | ) | |
Profit before tax | 334 | (7.4 | ) | (5.6 | ) | 17.1 | 22.4 | ||||
Tax on profit | (82 | ) | (7.6 | ) | (6.5 | ) | 22.8 | 28.0 | |||
Profit from continuing operations | 252 | (7.4 | ) | (5.2 | ) | 15.4 | 20.7 | ||||
Net profit from discontinued operations | — | — | — | — | — | ||||||
Consolidated profit | 252 | (7.4 | ) | (5.2 | ) | 15.4 | 20.7 | ||||
Non-controlling interests | (11 | ) | (21.0 | ) | (15.9 | ) | 9.4 | 23.8 | |||
Underlying attributable profit to the parent | 240 | (6.6 | ) | (4.7 | ) | 15.7 | 20.5 |
SANTANDER GLOBAL PLATFORM (secondary segment) | |||||||||||
EUR million | |||||||||||
/ | Q4'19 | / | Q1'19 | ||||||||
Underlying income statement | Q1'20 | % | % excl. FX | % | % excl. FX | ||||||
Net interest income | 103 | 23.4 | 26.2 | 2.7 | 10.9 | ||||||
Net fee income | 115 | (13.0) | (11.5) | (19.0) | (10.0) | ||||||
Gains (losses) on financial transactions (1) | 42 | 12.0 | 14.3 | 25.5 | 31.7 | ||||||
Other operating income | — | — | — | — | — | ||||||
Total income | 260 | 4.4 | 6.4 | (4.1) | 4.8 | ||||||
Administrative expenses and amortisations | (186 | ) | (8.1) | (6.9) | 13.0 | 20.4 | |||||
Net operating income | 74 | 57.9 | 65.6 | (30.5) | (21.0) | ||||||
Net loan-loss provisions | (5 | ) | (69.2 | ) | (68.9 | ) | (70.7 | ) | (70.3 | ) | |
Other gains (losses) and provisions | 2 | — | — | — | — | ||||||
Profit before tax | 71 | 156.8 | 179.5 | (18.9) | (5.3) | ||||||
Tax on profit | (19 | ) | 29.9 | 40.0 | (23.4) | (6.2) | |||||
Profit from continuing operations | 52 | 301.3 | 342.3 | (17.1) | (4.9) | ||||||
Net profit from discontinued operations | — | — | — | — | — | ||||||
Consolidated profit | 52 | 301.3 | 342.3 | (17.1) | (4.9) | ||||||
Non-controlling interests | (9 | ) | 32.5 | 39.5 | (13.4) | (4.2) | |||||
Underlying attributable profit to the parent | 43 | 619.7 | 739.9 | (17.8) | (5.0) |
January - March 2020 | 79 |
Reconciliation of underlying results to statutory results | ||||||
EUR million | ||||||
January-March 2020 | ||||||
Underlying results | Adjustments | Statutory results | ||||
Net interest income | 8,487 | — | 8,487 | |||
Net fee income | 2,853 | — | 2,853 | |||
Gains (losses) on financial transactions (1) | 292 | (5 | ) | 287 | ||
Other operating income | 182 | — | 182 | |||
Total income | 11,814 | (5 | ) | 11,809 | ||
Administrative expenses and amortisations | (5,577 | ) | (12 | ) | (5,589 | ) |
Net operating income | 6,237 | (17 | ) | 6,220 | ||
Net loan-loss provisions | (2,309 | ) | (1,610 | ) | (3,919 | ) |
Other gains (losses) and provisions | (372 | ) | (38 | ) | (410 | ) |
Profit before tax | 3,556 | (1,665 | ) | 1,891 | ||
Tax on profit | (1,260 | ) | 16 | (1,244 | ) | |
Profit from continuing operations | 2,296 | (1,649 | ) | 647 | ||
Net profit from discontinued operations | — | — | — | |||
Consolidated profit | 2,296 | (1,649 | ) | 647 | ||
Non-controlling interests | (319 | ) | 3 | (316 | ) | |
Attributable profit to the parent | 1,977 | (1,646 | ) | 331 |
80 | January - March 2020 |
Reconciliation of underlying results to statutory results | ||||||
EUR million | ||||||
January-March 2019 | ||||||
Underlying results | Adjustments | Statutory results | ||||
Net interest income | 8,682 | — | 8,682 | |||
Net fee income | 2,931 | — | 2,931 | |||
Gains (losses) on financial transactions (1) | 277 | — | 277 | |||
Other operating income | 195 | — | 195 | |||
Total income | 12,085 | — | 12,085 | |||
Administrative expenses and amortisations | (5,758 | ) | — | (5,758 | ) | |
Net operating income | 6,327 | — | 6,327 | |||
Net loan-loss provisions | (2,172 | ) | — | (2,172 | ) | |
Other gains (losses) and provisions | (471 | ) | (82 | ) | (553 | ) |
Profit before tax | 3,684 | (82 | ) | 3,602 | ||
Tax on profit | (1,326 | ) | (31 | ) | (1,357 | ) |
Profit from continuing operations | 2,358 | (113 | ) | 2,245 | ||
Net profit from discontinued operations | — | — | — | |||
Consolidated profit | 2,358 | (113 | ) | 2,245 | ||
Non-controlling interests | (410 | ) | 5 | (405 | ) | |
Attributable profit to the parent | 1,948 | (108 | ) | 1,840 |
Ratio | Formula | Relevance of the metric | ||
RoE | Attributable profit to the parent | This ratio measures the return that shareholders obtain on the funds invested in the Bank and as such measures the company's ability to pay shareholders. | ||
(Return on equity) | Average stockholders’ equity (1) (excl. minority interests) | |||
RoTE | Attributable profit to the parent | This is a very common indicator, used to evaluate the profitability of the company as a percentage of its tangible equity. It's measured as the return that shareholders receive as a percentage of the funds invested in the entity less intangible assets. | ||
(Return on tangible equity) | Average stockholders' equity (1) (excl. minority interests) - intangible assets | |||
Underlying RoTE | Attributable profit to the parent | This indicator measures the profitability of the tangible equity of a company arising from ordinary activities, i.e. excluding results from non-recurring operations. | ||
Average stockholders' equity(1) (excl. minority interests) - intangible assets | ||||
RoA | Consolidated profit | This metric, commonly used by analysts, measures the profitability of a company as a percentage of its total assets. It is an indicator that reflects the efficiency of the company's total funds in generating profit over a given period. | ||
(Return on assets) | Average total assets | |||
RoRWA | Consolidated profit | The return adjusted for risk is an derivative of the RoA metric. The difference is that RoRWA measures profit in relation to the bank's risk weighted assets | ||
(Return on risk weighted assets) | Average risk weighted assets | |||
Underlying RoRWA | Underlying consolidated profit | This relates the consolidated profit (excluding non-recurring results) to the bank's risk weighted assets. | ||
Average risk weighted assets | ||||
Efficiency ratio | Operating expenses (2) | One of the most commonly used indicators when comparing productivity of different financial entities. It measures the amount of funds used to generate the bank's total income. | ||
Total income |
January - March 2020 | 81 |
Profitability and efficiency (1) (2) (3) (4) | Q1'20 | Q4'19 | Q1'19 | |||
RoE | 6.31 | % | 9.10 | % | 7.85 | % |
Attributable profit to the parent | 6,259 | 8,999 | 7,684 | |||
Average stockholders' equity (excluding minority interests) | 99,221 | 98,851 | 97,886 | |||
RoTE | 8.75 | % | 12.62 | % | 11.15 | % |
Attributable profit to the parent | 6,259 | 8,999 | 7,684 | |||
Average stockholders' equity (excluding minority interests) | 99,221 | 98,851 | 97,886 | |||
(-) Average intangible assets | 27,721 | 27,562 | 28,978 | |||
Average stockholders' equity (excl. minority interests) - intangible assets | 71,500 | 71,289 | 68,908 | |||
Underlying RoTE | 11.06 | % | 11.63 | % | 11.31 | % |
Attributable profit to the parent | 6,259 | 8,999 | 7,684 | |||
(-) Net capital gains and provisions | (1,646) | 711 | (108) | |||
Underlying attributable profit to the parent | 7,904 | 8,288 | 7,792 | |||
Average stockholders' equity (excl. minority interests) - intangible assets | 71,500 | 71,289 | 68,908 | |||
RoA | 0.49 | % | 0.68 | % | 0.63 | % |
Consolidated profit | 7,536 | 10,335 | 9,318 | |||
Average total assets | 1,536,725 | 1,530,761 | 1,488,505 | |||
RoRWA | 1.25 | % | 1.69 | % | 1.54 | % |
Consolidated profit | 7,536 | 10,335 | 9,318 | |||
Average risk weighted assets | 603,069 | 612,149 | 603,340 | |||
Underlying RoRWA | 1.52 | % | 1.57 | % | 1.56 | % |
Consolidated profit | 7,536 | 10,335 | 9,318 | |||
(-) Net capital gains and provisions | (1,649) | 746 | (113) | |||
Underlying consolidated profit | 9,186 | 9,589 | 9,431 | |||
Average risk weighted assets | 603,069 | 612,149 | 603,340 | |||
Efficiency ratio | 47.2 | % | 47.4 | % | 47.6 | % |
Underlying operating expenses | 5,577 | 5,971 | 5,758 | |||
Operating expenses | 5,589 | 5,971 | 5,758 | |||
Net capital gains and provisions impact in operating expenses | (12) | — | — | |||
Underlying total income | 11,814 | 12,592 | 12,085 | |||
Total income | 11,809 | 12,327 | 12,085 | |||
Net capital gains and provisions impact in total income | 5 | 265 | — |
Efficiency ratio | ||||||||||||
Q1'20 | Q1'19 | |||||||||||
% | Total income | Operating expenses | % | Total income | Operating expenses | |||||||
Europe | 54.5 | 4,974 | 2,712 | 53.6 | 5,225 | 2,802 | ||||||
Spain | 52.8 | 1,789 | 944 | 55.2 | 1,857 | 1,025 | ||||||
Santander Consumer Finance | 43.9 | 1,171 | 514 | 43.5 | 1,167 | 508 | ||||||
United Kingdom | 65.0 | 1,098 | 714 | 61.3 | 1,206 | 739 | ||||||
Portugal | 43.1 | 350 | 151 | 44.0 | 357 | 157 | ||||||
Poland | 47.1 | 365 | 172 | 45.9 | 377 | 173 | ||||||
North America | 41.7 | 2,936 | 1,224 | 42.6 | 2,753 | 1,172 | ||||||
US | 41.9 | 1,929 | 809 | 42.7 | 1,815 | 775 | ||||||
Mexico | 41.2 | 1,007 | 415 | 42.3 | 939 | 397 | ||||||
South America | 35.7 | 4,163 | 1,486 | 36.7 | 4,487 | 1,645 | ||||||
Brazil | 32.0 | 3,137 | 1,004 | 33.0 | 3,411 | 1,125 | ||||||
Chile | 41.7 | 553 | 230 | 42.6 | 600 | 255 | ||||||
Argentina | 58.5 | 318 | 186 | 61.1 | 331 | 202 |
82 | January - March 2020 |
Underlying RoTE | ||||||||||||
Q1'20 | Q1'19 | |||||||||||
% | Underlying attributable profit to the parent | Average stockholders' equity (excl. minority interests) - intangible assets | % | Underlying attributable profit to the parent | Average stockholders' equity (excl. minority interests) - intangible assets | |||||||
Europe | 7.94 | 3,895 | 49,049 | 9.61 | 4,653 | 48,433 | ||||||
Spain | 9.00 | 1,409 | 15,650 | 9.61 | 1,424 | 14,820 | ||||||
Santander Consumer Finance | 13.86 | 1,216 | 8,778 | 14.85 | 1,297 | 8,733 | ||||||
United Kingdom | 5.16 | 751 | 14,556 | 6.91 | 1,018 | 14,724 | ||||||
Portugal | 12.91 | 479 | 3,705 | 13.05 | 540 | 4,135 | ||||||
Poland | 4.73 | 151 | 3,192 | 7.76 | 245 | 3,161 | ||||||
North America | 9.92 | 2,089 | 21,068 | 8.45 | 1,546 | 18,297 | ||||||
US | 6.98 | 1,092 | 15,648 | 5.07 | 725 | 14,305 | ||||||
Mexico | 17.96 | 997 | 5,550 | 20.11 | 820 | 4,080 | ||||||
South America | 21.12 | 3,711 | 17,571 | 19.58 | 3,704 | 18,910 | ||||||
Brazil | 22.04 | 2,775 | 12,590 | 20.98 | 2,882 | 13,738 | ||||||
Chile | 15.15 | 499 | 3,294 | 16.34 | 593 | 3,630 | ||||||
Argentina | 30.06 | 235 | 782 | 5.08 | 41 | 814 |
Ratio | Formula | Relevance of the metric | ||
NPL ratio (Non-performing loans) | Non-performing loans and advances to customers, customer guarantees and customer commitments granted | The NPL ratio is an important variable regarding financial institutions' activity since it gives an indication of the level of risk the entities are exposed to. It calculates risks that are, in accounting terms, declared to be non-performing as a percentage of the total outstanding amount of customer credit and contingent liabilities. | ||
Total Risk (1) | ||||
Coverage ratio | Provisions to cover impairment losses on loans and advances to customers, customer guarantees and customer commitments granted | The coverage ratio is a fundamental metric in the financial sector. It reflects the level of provisions as a percentage of the non-performing assets (credit risk). Therefore it is a good indicator of the entity's solvency against client defaults both present and future. | ||
Non-performing loans and advances to customers, customer guarantees and customer commitments granted | ||||
Cost of Credit | Allowances for loan-loss provisions over the last 12 months | This ratio quantifies loan-loss provisions arising from credit risk over a defined period of time for a given loan portfolio. As such, it acts as an indicator of credit quality. | ||
Average loans and advances to customers over the last 12 months |
Credit risk | Mar-20 | Dec-19 | Mar-19 | |||
NPL ratio | 3.25 | % | 3.32 | % | 3.62 | % |
Non-performing loans and advances to customers customer guarantees and customer commitments granted | 32,743 | 33,799 | 35,590 | |||
Total risk | 1,008,275 | 1,016,507 | 983,790 | |||
Coverage ratio | 71 | % | 68 | % | 68 | % |
Provisions to cover impairment losses on loans and advances to customers, customer guarantees and customer commitments granted | 23,361 | 22,965 | 24,129 | |||
Non-performing loans and advances to customers customer guarantees and customer commitments granted | 32,743 | 33,799 | 35,590 | |||
Cost of credit | 1.00 | % | 1.00 | % | 0.97 | % |
Underlying allowances for loan-loss provisions over the last 12 months | 9,458 | 9,321 | 8,762 | |||
Allowances for loan-loss provisions over the last 12 months | 11,068 | 9,321 | 8,762 | |||
Net capital gains and provisions impact in allowances for loan-loss provisions | (1,610) | — | — | |||
Average loans and advances to customers over the last 12 months | 944,853 | 935,488 | 899,201 |
January - March 2020 | 83 |
NPL ratio | ||||||||||
Q1'20 | Q1'19 | |||||||||
% | Non-performing loans and advances to customers customer guarantees and customer commitments granted | Total risk | % | Non-performing loans and advances to customers customer guarantees and customer commitments granted | Total risk | |||||
Europe | 3.19 | 23,199 | 726,929 | 3.61 | 25,314 | 701,283 | ||||
Spain | 6.88 | 14,724 | 214,072 | 7.29 | 16,264 | 223,123 | ||||
Santander Consumer Finance | 2.43 | 2,494 | 102,833 | 2.33 | 2,295 | 98,373 | ||||
United Kingdom | 0.96 | 2,603 | 270,280 | 1.17 | 3,110 | 266,134 | ||||
Portugal | 4.56 | 1,776 | 38,956 | 5.77 | 2,201 | 38,129 | ||||
Poland | 4.29 | 1,387 | 32,368 | 4.39 | 1,364 | 31,066 | ||||
North America | 2.02 | 2,936 | 145,566 | 2.33 | 3,118 | 133,887 | ||||
US | 2.00 | 2,238 | 111,853 | 2.41 | 2,353 | 97,820 | ||||
Mexico | 2.07 | 698 | 33,713 | 2.12 | 765 | 36,067 | ||||
South America | 4.63 | 5,969 | 128,953 | 4.83 | 6,841 | 141,757 | ||||
Brazil | 4.93 | 3,809 | 77,202 | 5.26 | 4,477 | 85,096 | ||||
Chile | 4.63 | 1,839 | 39,707 | 4.67 | 2,013 | 43,127 | ||||
Argentina | 3.97 | 190 | 4,776 | 3.50 | 224 | 6,398 |
Coverage ratio | ||||||||||||
Q1'20 | Q1'19 | |||||||||||
% | Provisions to cover impairment losses on loans and advances to customers, customer guarantees and customer commitments granted | Non-performing loans and advances to customers customer guarantees and customer commitments granted | % | Provisions to cover impairment losses on loans and advances to customers, customer guarantees and customer commitments granted | Non-performing loans and advances to customers customer guarantees and customer commitments granted | |||||||
Europe | 50.7 | 11,766 | 23,199 | 49.5 | 12,523 | 25,314 | ||||||
Spain | 42.0 | 6,189 | 14,724 | 43.3 | 7,044 | 16,264 | ||||||
Santander Consumer Finance | 103.8 | 2,588 | 2,494 | 105.3 | 2,416 | 2,295 | ||||||
United Kingdom | 37.7 | 981 | 2,603 | 30.9 | 960 | 3,110 | ||||||
Portugal | 54.8 | 973 | 1,776 | 50.7 | 1,116 | 2,201 | ||||||
Poland | 66.2 | 919 | 1,387 | 67.6 | 922 | 1,364 | ||||||
North America | 157.6 | 4,629 | 2,936 | 153.4 | 4,782 | 3,118 | ||||||
US | 166.8 | 3,733 | 2,238 | 161.0 | 3,788 | 2,353 | ||||||
Mexico | 128.4 | 897 | 698 | 130.1 | 994 | 765 | ||||||
South America | 86.3 | 5,149 | 5,969 | 94.1 | 6,439 | 6,841 | ||||||
Brazil | 99.9 | 3,806 | 3,809 | 107.7 | 4,822 | 4,477 | ||||||
Chile | 54.3 | 998 | 1,839 | 59.7 | 1,202 | 2,013 | ||||||
Argentina | 112.5 | 213 | 190 | 118.6 | 266 | 224 |
84 | January - March 2020 |
Ratio | Formula | Relevance of the metric | ||
TNAV per share | Tangible book value (1) | This is a very commonly used ratio used to measure the company's accounting value per share having deducted the intangible assets. It is useful in evaluating the amount each shareholder would receive if the company were to enter into liquidation and had to sell all the company's tangible assets. | ||
(Tangible equity net asset value per share) | Number of shares excluding treasury stock | |||
Price / tangible book value per share (X) | Share price | This is one of the most commonly used ratios by market participants for the valuation of listed companies both in absolute terms and relative to other entities. This ratio measures the relationship between the price paid for a company and its accounting equity value. | ||
TNAV per share | ||||
LTD ratio | Net loans and advances to customers | This is an indicator of the bank's liquidity. It measures the total (net) loans and advances to customers as a percentage of customer deposits. | ||
(Loan-to-deposit) | Customer deposits | |||
Loans and advances (excl. reverse repos) | Gross loans and advances to customers excluding reverse repos | In order to aid analysis of the commercial banking activity, reverse repos are excluded as they are highly volatile treasury products. | ||
Deposits (excl. repos) | Customer deposits excluding repos | In order to aid analysis of the commercial banking activity, repos are excluded as they are highly volatile treasury products. | ||
PAT + After tax fees paid to SAN (in Wealth Management & Insurance) | Net profit + fees paid from Santander Asset Management and Santander Insurance to Santander, net of taxes, excluding Private Banking customers | Metric to assess Wealth Management & Insurance's total contribution to Grupo Santander profit. |
Others | Mar-20 | Dec-19 | Mar-19 | |||
TNAV (tangible book value) per share | 4.21 | 4.36 | 4.30 | |||
Tangible book value (EUR million) | 69,795 | 72,384 | 69,731 | |||
Number of shares excl. treasury stock (million) | 16,590 | 16,610 | 16,235 | |||
Price / Tangible book value per share (X) | 0.53 | 0.86 | 0.96 | |||
Share price (euros) | 2.218 | 3.730 | 4.145 | |||
TNAV (tangible book value) per share | 4.21 | 4.36 | 4.30 | |||
Loan-to-deposit ratio | 115 | % | 114 | % | 113 | % |
Net loans and advances to customers | 935,407 | 942,218 | 910,195 | |||
Customer deposits | 815,459 | 824,365 | 808,361 | |||
Q1'20 | Q4'19 | Q1'19 | ||||
PAT + After tax fees paid to SAN (in WM&I) (Constant EUR million) | 596 | 629 | 556 | |||
Profit after tax | 252 | 266 | 209 | |||
Net fee income net of tax | 344 | 364 | 347 |
January - March 2020 | 85 |
Exchange rates: 1 euro / currency parity | |||||||||||
Average (income statement) | Period-end (balance sheet) | ||||||||||
Q1'20 | Q1'19 | Mar-20 | Dec-19 | Mar-19 | |||||||
US dollar | 1.102 | 1.136 | 1.096 | 1.123 | 1.124 | ||||||
Pound sterling | 0.861 | 0.872 | 0.886 | 0.851 | 0.858 | ||||||
Brazilian real | 4.889 | 4.277 | 5.700 | 4.516 | 4.387 | ||||||
Mexican peso | 21.898 | 21.804 | 26.177 | 21.220 | 21.691 | ||||||
Chilean peso | 886.223 | 757.486 | 934.656 | 845.673 | 764.435 | ||||||
Argentine peso | 67.819 | 44.208 | 70.546 | 67.258 | 48.659 | ||||||
Polish zloty | 4.321 | 4.302 | 4.551 | 4.257 | 4.301 |
86 | January - March 2020 |
Response to the COVID-19 crisis Business model | ||||||||
Interim condensed consolidated financial statements |
• | CONSOLIDATED BALANCE SHEET |
• | CONSOLIDATED INCOME STATEMENT |
NOTE: | The following financial information for the first three months of 2020 and 2019 (attached herewith) corresponds to the condensed consolidated financial statements prepared in accordance with the International Financial Reporting Standards. |
Interim condensed consolidated balance sheet | ||||||
EUR million | ||||||
ASSETS | Mar-20 | Dec-19 | Mar-19 | |||
Cash, cash balances at central banks and other deposits on demand | 122,456 | 101,067 | 103,500 | |||
Financial assets held for trading | 125,846 | 108,230 | 98,592 | |||
Non-trading financial assets mandatorily at fair value through profit or loss | 4,483 | 4,911 | 6,661 | |||
Financial assets designated at fair value through profit or loss | 62,659 | 62,069 | 75,488 | |||
Financial assets at fair value through other comprehensive income | 110,238 | 125,708 | 116,359 | |||
Financial assets at amortised cost | 981,331 | 995,482 | 980,733 | |||
Hedging derivatives | 12,755 | 7,216 | 7,270 | |||
Changes in the fair value of hedged items in portfolio hedges of interest risk | 2,089 | 1,702 | 1,435 | |||
Investments | 8,610 | 8,772 | 7,726 | |||
Joint ventures companies | 1,266 | 1,325 | 956 | |||
Associated entities | 7,344 | 7,447 | 6,770 | |||
Assets under insurance or reinsurance contracts | 312 | 292 | 332 | |||
Tangible assets | 34,912 | 35,235 | 33,246 | |||
Property, plant and equipment | 33,972 | 34,262 | 32,149 | |||
For own-use | 14,089 | 15,041 | 14,771 | |||
Leased out under an operating lease | 19,883 | 19,221 | 17,378 | |||
Investment property | 940 | 973 | 1,097 | |||
Of which Leased out under an operating lease | 806 | 823 | 786 | |||
Intangible assets | 26,583 | 27,687 | 29,114 | |||
Goodwill | 23,141 | 24,246 | 25,989 | |||
Other intangible assets | 3,442 | 3,441 | 3,125 | |||
Tax assets | 29,607 | 29,585 | 29,634 | |||
Current tax assets | 7,516 | 6,827 | 6,415 | |||
Deferred tax assets | 22,091 | 22,758 | 23,219 | |||
Other assets | 13,564 | 10,138 | 11,501 | |||
Insurance contracts linked to pensions | 186 | 192 | 204 | |||
Inventories | 5 | 5 | 4 | |||
Other | 13,373 | 9,941 | 11,293 | |||
Non-current assets held for sale | 4,914 | 4,601 | 4,560 | |||
TOTAL ASSETS | 1,540,359 | 1,522,695 | 1,506,151 |
January - March 2020 | 87 |
Response to the COVID-19 crisis Business model | ||||||||
Interim condensed consolidated financial statements |
Interim condensed consolidated balance sheet | ||||||
EUR million | ||||||
LIABILITIES | Mar-20 | Dec-19 | Mar-19 | |||
Financial liabilities held for trading | 100,082 | 77,139 | 67,994 | |||
Financial liabilities designated at fair value through profit or loss | 67,337 | 60,995 | 74,426 | |||
Financial liabilities at amortised cost | 1,224,749 | 1,230,745 | 1,211,981 | |||
Hedging derivatives | 6,673 | 6,048 | 7,273 | |||
Changes in the fair value of hedged items in portfolio hedges of interest rate risk | 264 | 269 | 313 | |||
Liabilities under insurance or reinsurance contracts | 2,280 | 739 | 751 | |||
Provisions | 12,335 | 13,987 | 13,449 | |||
Pensions and other post-retirement obligations | 5,507 | 6,358 | 5,737 | |||
Other long term employee benefits | 1,273 | 1,382 | 1,160 | |||
Taxes and other legal contingencies | 2,519 | 3,057 | 3,205 | |||
Contingent liabilities and commitments | 668 | 739 | 710 | |||
Other provisions | 2,368 | 2,451 | 2,637 | |||
Tax liabilities | 9,405 | 9,322 | 8,783 | |||
Current tax liabilities | 2,588 | 2,800 | 2,699 | |||
Deferred tax liabilities | 6,817 | 6,522 | 6,084 | |||
Other liabilities | 11,121 | 12,792 | 10,816 | |||
Liabilities associated with non-current assets held for sale | — | — | — | |||
TOTAL LIABILITIES | 1,434,246 | 1,412,036 | 1,395,786 | |||
EQUITY | ||||||
Shareholders´ equity | 124,139 | 124,239 | 121,866 | |||
Capital | 8,309 | 8,309 | 8,118 | |||
Called up paid capital | 8,309 | 8,309 | 8,118 | |||
Unpaid capital which has been called up | — | — | — | |||
Share premium | 52,446 | 52,446 | 50,993 | |||
Equity instruments issued other than capital | 604 | 598 | 573 | |||
Equity component of the compound financial instrument | — | — | — | |||
Other equity instruments issued | 604 | 598 | 573 | |||
Other equity | 171 | 146 | 172 | |||
Accumulated retained earnings | 67,594 | 61,028 | 64,346 | |||
Revaluation reserves | — | — | — | |||
Other reserves | (3,580 | ) | (3,110 | ) | (1,933 | ) |
(-) Own shares | (74 | ) | (31 | ) | (6 | ) |
Profit attributable to shareholders of the parent | 331 | 6,515 | 1,840 | |||
(-) Interim dividends | (1,662 | ) | (1,662 | ) | (2,237 | ) |
Other comprehensive income | (27,761 | ) | (24,168 | ) | (23,021 | ) |
Items not reclassified to profit or loss | (3,484 | ) | (4,288 | ) | (3,469 | ) |
Items that may be reclassified to profit or loss | (24,277 | ) | (19,880 | ) | (19,552 | ) |
Non-controlling interest | 9,735 | 10,588 | 11,520 | |||
Other comprehensive income | (1,696 | ) | (982 | ) | (1,137 | ) |
Other elements | 11,431 | 11,570 | 12,657 | |||
TOTAL EQUITY | 106,113 | 110,659 | 110,365 | |||
TOTAL LIABILITIES AND EQUITY | 1,540,359 | 1,522,695 | 1,506,151 | |||
MEMORANDUM ITEMS | ||||||
Loans commitment granted | 217,767 | 241,179 | 221,305 | |||
Financial guarantees granted | 12,810 | 13,650 | 12,265 | |||
Other commitments granted | 73,128 | 68,895 | 79,472 |
January - March 2020 | 88 |
Response to the COVID-19 crisis Business model | ||||||||
Interim condensed consolidated financial statements |
Interim condensed consolidated income statement | ||||
EUR million | ||||
Q1'20 | Q1'19 | |||
Interest income | 13,208 | 14,280 | ||
Financial assets at fair value through other comprehensive income | 1,145 | 1,022 | ||
Financial assets at amortised cost | 11,402 | 11,987 | ||
Other interest income | 661 | 1,271 | ||
Interest expense | (4,721 | ) | (5,598 | ) |
Net interest income | 8,487 | 8,682 | ||
Dividend income | 57 | 66 | ||
Share of results of entities accounted for using the equity method | 98 | 153 | ||
Commission income | 3,765 | 3,746 | ||
Commission expense | (912 | ) | (815 | ) |
Gain or losses on financial assets and liabilities not measured at fair value through profit or loss, net | 312 | 116 | ||
Financial assets at amortised cost | (23 | ) | 5 | |
Other financial assets and liabilities | 335 | 111 | ||
Gain or losses on financial assets and liabilities held for trading, net | 3,975 | 28 | ||
Reclassification of financial assets at fair value through other comprehensive income | — | — | ||
Reclassification of financial assets at amortised cost | — | — | ||
Other gains (losses) | 3,975 | 28 | ||
Gains or losses on non-trading financial assets and liabilities mandatorily at fair value through profit or loss | (41 | ) | 131 | |
Reclassification of financial assets at fair value through other comprehensive income | — | — | ||
Reclassification of financial assets at amortised cost | — | — | ||
Other gains (losses) | (41 | ) | 131 | |
Gain or losses on financial assets and liabilities measured at fair value through profit or loss, net | (55 | ) | (76 | ) |
Gain or losses from hedge accounting, net | 138 | (29 | ) | |
Exchange differences (profit or loss) net | (4,042 | ) | 107 | |
Other operating income | 435 | 419 | ||
Other operating expenses | (451 | ) | (469 | ) |
Income from assets under insurance and reinsurance contracts | 452 | 882 | ||
Expenses from liabilities under insurance and reinsurance contracts | (409 | ) | (856 | ) |
Total income | 11,809 | 12,085 | ||
Administrative expenses | (4,860 | ) | (5,011 | ) |
Staff costs | (2,899 | ) | (3,006 | ) |
Other general administrative expenses | (1,961 | ) | (2,005 | ) |
Depreciation and amortisation cost | (729 | ) | (747 | ) |
Provisions or reversal of provisions, net | (374 | ) | (465 | ) |
Impairment or reversal of impairment at financial assets not measured at fair value through profit or loss and net gains and losses from changes | (3,934 | ) | (2,246 | ) |
Financial assets at fair value with changes in other comprehensive income | (1 | ) | (3 | ) |
Financial assets at amortised cost | (3,933 | ) | (2,243 | ) |
Impairment of investments in subsidiaries, joint ventures and associates, net | — | — | ||
Impairment on non-financial assets, net | (14 | ) | (20 | ) |
Tangible assets | (3 | ) | (20 | ) |
Intangible assets | (8 | ) | (1 | ) |
Others | (3 | ) | 1 | |
Gain or losses on non financial assets and investments, net | 18 | 219 | ||
Negative goodwill recognised in results | — | — | ||
Gains or losses on non-current assets held for sale not classified as discontinued operations | (25 | ) | (213 | ) |
Profit or loss before tax from continuing operations | 1,891 | 3,602 | ||
Tax expense or income from continuing operations | (1,244 | ) | (1,357 | ) |
Profit for the period from continuing operations | 647 | 2,245 | ||
Profit or loss after tax from discontinued operations | — | — | ||
Profit for the period | 647 | 2,245 | ||
Profit attributable to non-controlling interests | 316 | 405 | ||
Profit attributable to the parent | 331 | 1,840 | ||
Earnings per share | ||||
Basic | 0.012 | 0.104 | ||
Diluted | 0.011 | 0.104 |
January - March 2020 | 89 |
• | Active customer: Those customers who comply with the minimum balance, income and/or transactionality requirements as defined according to the business area |
• | ALCO: Assets and Liabilities Committee |
• | APM: Alternative Performance Measures |
• | bps: basis points |
• | CET1: Core equity tier 1 |
• | CNMV: Spanish National Securities Market Commission (Comisión Nacional del Mercado de Valores) |
• | COVID-19: Corona Virus Disease 19 |
• | Digital customers: Every consumer of a commercial bank’s services who has logged on to their personal online banking and/or mobile banking in the last 30 days |
• | EBA: European Banking Authority |
• | ECB: European Central Bank |
• | EPS: Earnings per share |
• | ESG: Environmental, Social and Governance |
• | ESMA: European Securities and Markets Authority |
• | Fed: Federal Reserve |
• | FX: Foreign Exchange |
• | GDP: Gross Domestic Product |
• | IFRS 9: International Financial Reporting Standard 9, regarding financial instruments |
• | IFRS 16: International Financial Reporting Standard 16, regarding leases |
• | Loyal customers: Active customers who receive most of their financial services from the Group according to the commercial segment that they belong to. Various engaged customer levels have been defined taking profitability into account. |
• | NPLs: Non-performing loans |
• | P/E ratio: Price / earnings per share ratio |
• | PBT: Profit before tax |
• | pp: percentage points |
• | PPI: Payment protection insurance |
• | Repos: Repurchase agreements |
• | RoA: Return on assets |
• | RoE: Return on equity |
• | RoRWA: Return on risk weighted assets |
• | RoTE: Return on tangible equity |
• | RWAs: Risk weighted assets |
• | SAM: Santander Asset Management |
• | SBNA: Santander Bank N.A. |
• | SCF: Santander Consumer Finance |
• | SCIB: Santander Corporate & Investment Banking |
• | SC USA: Santander Consumer USA |
• | SEC: Securities and Exchanges Commission |
• | SGP: Santander Global Platform |
• | SH USA: Santander Holdings USA, Inc. |
• | SMEs: Small and medium enterprises |
• | SPF: Simple, Personal and Fair |
• | SREP: Supervisory Review and Evaluation Process |
• | SSM: Single Supervisory Mechanism, the system of banking supervision in Europe. It comprises the ECB and the national supervisory authorities of the participating countries |
• | T1: Tier 1 |
• | TLAC: The total loss-absorption capacity requirement which is required to be met under the CRD V package |
• | TNAV: Tangible net asset value |
• | TRIM: Targeted review of internal models |
• | VaR: Value at Risk |
• | WM&I: Wealth Management & Insurance |
90 | January - March 2020 |
Response to the COVID-19 crisis Business model | ||||||||
Important information |
January - March 2020 | 91 |
Response to the COVID-19 crisis Business model | ||||||||
Important information |
This document is a translation of a document originally issued in Spanish. Should there be any discrepancies between the English and the Spanish versions, only the original Spanish version should be binding. |
92 | January - March 2020 |
Banco Santander, S.A. | ||
Date: April 28, 2020 | By: | /s/ José García Cantera |
Name: | José García Cantera | |
Title: | Chief Financial Officer |
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