RESULTS

Attributable profit of the first quarter of 2018 was EUR 2,054 million, 10% higher than in the same period of 2017 (22% without the exchange rate impact)

This performance was positively affected by Banco Popular’s incorporation and the greater stake in Santander Asset Management and negatively by exchange rates.

Solid commercial revenues

Cost management with an efficiency ratio among the best in the sector

Improved cost of credit

Q1'18 Attributable profit

Group profit growth driven BY most markets

Excluding Corporate Centre and Real Estate Activity Spain

ATTRIBUTABLE PROFIT TO THE GROUP

Q1'18 Attributable profit in core markets

EUR mn and % change vs. Q1’18 in constant euros

The information shown above in relation to the different units has been prepared in accordance with homogeneous management criteria for the whole Group and may therefore differ from the information published for each company on an individual basis.

Earnings in the main geographies

Constant euros

United States:

Profit of EUR 125 million, 52% higher year-on-year, largely due to lower provisions and cost control. Both Santander Bank and Santander Consumer USA registered strong profit growth.

Continental Europe:

Attributable profit of EUR 931 million, 21% more year-on-year. Growth was largely due to the increase in commercial revenues, and also benefitted from Banco Popular’s integration. All units increased the profit in this period, most notably Spain with a profit of 455 million and growth of 26%.

United Kingdom:

In an environment of some uncertainty because of Brexit and tough competition, attributable profit was 21% lower at EUR 320 million. This was due to pressure on spreads and investments in strategic and regulatory projects and increased provisions over the first quarter of 2017 with a cost of credit of almost zero.

Latin America:

Profit of EUR 1,099 million, 23% higher year-on-year. Growth was underpinned by the good performance of net interest income and fee income, reflecting the rise in volumes and higher spreads. Of note were those obtained by Brazil, with EUR 677 million (+27%), and Mexico, with EUR 175 million (+14%).

United States:
Profit of EUR 125 million, 52% higher year-on-year, largely due to lower provisions and cost control. Both Santander Bank and Santander Consumer USA registered strong profit growth.

Continental Europe:
Attributable profit of EUR 931 million, 21% more year-on-year. Growth was largely due to the increase in commercial revenues, and also benefitted from Banco Popular’s integration. All units increased the profit in this period, most notably Spain with a profit of 455 million and growth of 26%.

United Kingdom:
In an environment of some uncertainty because of Brexit and tough competition, attributable profit was 21% lower at EUR 320 million. This was due to pressure on spreads and investments in strategic and regulatory projects and increased provisions over the first quarter of 2017 with a cost of credit of almost zero.

Latin America:
Profit of EUR 1,099 million, 23% higher year-on-year. Growth was underpinned by the good performance of net interest income and fee income, reflecting the rise in volumes and higher spreads. Of note were those obtained by Brazil, with EUR 677 million (+27%), and Mexico, with EUR 175 million (+14%).

Income statement

MILLION EUROS
% change
Q1'18 EUR Constant
EUR
Net interest income 8,454 0.6 11.0
Gross income 12,151 1.0 11.4
Net operating income 6,387 (1.5) 9.8
Profit before taxes 3,689 11.4 23.2
Attributable profit to the Group 2,054 10.0 22.2

FINANCIAL REPORT JANUARY - MARCH 2018

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