"Underlying profit is above 4.2 billion euros, which is more than double than in the first half of 2020.”
Welcome to the new Quarterly Shareholder Report where you can check the most significant information about Santander's share and the Group in the second quarter of 2021.
Browse from the home page to access each of the sections or move the cursor downwards to view the complete report.
“Our team has delivered another very strong quarter, with net operating income increasing by 13%, driven by solid performance across the board in all our regions and businesses, and especially strong growth in the US and UK.
We continue to play a vital role in supporting the economic recovery, and have seen lending and deposit volumes grow
again this quarter as we maintain a relentless customer focus.
Our commitment to building a more responsible bank, combined with the bank’s ongoing investment in digital
innovation, continues to improve the quality and sustainability of our earnings. Our efficiency improved further, with
our cost-to-income ratio now 45.7%, and we also made further progress in increasing customer satisfaction.
In line with our strategy, we continue to deploy capital to high growth, high return businesses and the proposal to
acquire the outstanding minorities in our US consumer franchise, and the leading broker Amherst Pierpont is consistent
with that approach.
We are on track to outperform our profitability target for the year and continue to target a shareholder remuneration
pay-out of 40-50% of underlying profit*.”
Ana Botín, Group Executive Chairman of Banco Santander
* Shareholder remuneration subject to future decisions of the board and, if applicable, the general shareholders’ meeting.
*Growth YoY in constant euros.
START
EUR 2.538
31/12/2020
MAXIMUM
EUR 3.509
03/06/2021
MINIMUM
EUR 2.375
28/01/2021
END
EUR 3.220
30/06/2021
The global economy is experiencing a strong recovery as progress with vaccinations led to the reopening of economic activities as well as mobility.
The second quarter was marked by upward revisions to economic forecasts, as well as increasing inflation, which raised expectations of interest rate hikes and concerns about an earlier than expected reduction in Federal Reserve (Fed) stimulus. However, the Fed reaffirmed its determination to give time for the labour market to recover and not rush to raise interest rates too quickly due to inflation fears, despite the fact that some members are already starting to talk about tapering. Meanwhile, the European Central Bank has said that it will maintain its current rate of purchases as part of the emergency purchase programme PEPP until the covid-19 crisis is over.
European and US banks benefited from the possibility that the ECB would lift the dividend payout restriction soon, thanks to the solid recovery of the eurozone, the good results of the US banks stress tests, with capital levels "well above" the regulatory minimum, and S&P's upward revision of a significant part of European banks' outlooks.
The main global equity markets ended the first half of the year with significant gains despite the cuts in recent days due to uncertainty over the increase in covid-19 cases. Thus, the banking sector recorded an overall better performance, the DJ Stoxx Banks rose 23.8% while the MSCI World Banks rose 19.5%, compared to the Ibex 35 9.3% increase and the DJ Stoxx 50 13.0% growth. Santander also recorded a better performance and a rise of 26.9%.
The Santander share ended the first half of the year up by
26.9%
Select comparables
of analysts recommend buying or holding SAN shares
56%
Buy
31%
Hold
13%
Sell
EUR 3.59
average target price
of analysts for
SAN shares
Source Bloomberg at 30/06/2021.
Cash dividend:
cents/share
The cash dividend of EUR 0.0275 per share against 2020 results was paid in May, the maximum allowed in accordance with the limits set by the European Central Bank recommendation of 15 December 2020.
This dividend was paid under the resolution for the distribution of share premium approved at the Bank’s general shareholders meeting on 27 October 2020.
>150 mn
total customers in Europe and the Americas
TOP 31
in 10 of our markets
1. Market share in lending as of March 2021 including only privately-owned banks. UK benchmark refers to the mortgage market. DCB refers to auto in Europe.
Top 3
in customer satisfaction
(NPS)2 in 7 markets
Loyal customers
millions
Digital customers
millions
2. NPS – Customer Satisfaction internal benchmark of active customers’ experience and satisfaction audited by Stiga / Deloitte.
balanced between mature and emerging markets.
3. H1'21 underlying attributable profit by region. Operating areas excluding Corporate Centre.
between customer segments.
Underlying attributable profit H1'21
In the second quarter of 2021, we once again demonstrated the strength of our model. We delivered strong results in an environment marked by the recovery of activity in all regions, following the progress in the vaccination process.
The Group’s underlying attributable profit in the first half of 2021 was EUR 4,205 million, 2.5 times higher than H1'20 (in constant euros), underpinned by the positive performance across regions, Digital Consumer Bank and the global businesses. This figure was the highest first half underlying attributable profit recorded since 2010:
In addition, considering the restructuring charge of EUR 530 million recorded in the first quarter, attributable profit in H1 was EUR 3,675 million, vs -EUR 10,798 million in the same period of 2020, mainly due to the recording of an adjustment to the valuation of goodwill in some units and deferred tax assets.
*Excluding net capital gains and provisions.
Well balanced Group profit. H1'21
(*) As a % of operating areas. Excluding the Corporate Centre.
% change / H1'20 | |||
---|---|---|---|
EUR million | H1'21 | EUR | Constant EUR |
Net interest income | 16,196 | 0.0 | 7.6 |
Total income | 22,695 | 0.8 | 8.4 |
Net operating income | 12,318 | 3.8 | 13.4 |
Underlying profit before tax* | 7,628 | 98.6 | 122.9 |
Underlying attributable profit to the Group* | 4,205 | 120.4 | 152.8 |
Attributable profit to the Group | 3,675 | — | — |
Loyal customers
millions
Digital customers
millions
Digital sales
% of total sales
In this environment, and excluding the exchange rate impact:
Loans
to customers
Customer
funds
Europe
60%
66%
North America
14%
13%
South America
14%
16%
Digital Consumer Bank
12%
5%
% operating areas. June 2021
% change/ H1'20 | |||
---|---|---|---|
EUR million | H1'21 | EUR | Constant EUR |
Gross loans and advances to customers* | 939,559 | 3.4 | 1.7 |
Customer deposits** | 854,577 | 6.0 | 4.4 |
Mutual funds | 182,491 | 20.0 | 18.2 |
Customer funds | 1,037,068 | 8.2 | 6.6 |
H1'21 vs H1'20 | Digital customers (mm) |
Customer loans (EUR bn) |
Customer deposits (EUR bn) |
Net operating income (EUR mn) |
Underlying att. profit (EUR mn) |
Underlying RoTE |
---|---|---|---|---|---|---|
Europe | 15.7 +6% |
562 +1% |
579 +3% |
3,947 +37% |
1,426 +172% |
7% +4.5pp |
North America | 6.3 +10% |
126 0%1 |
105 +5%1 |
3,145 +2% |
1,628 +178% |
15%2 +8.8pp |
South America | 22.7 +20% |
130 +10% |
116 +12% |
4,793 +11% |
1,645 +41% |
20% +3.9pp |
Digital Consumer Bank | 0.7 +28% |
116 0% |
54 +9% |
1,392 +2% |
569 +11% |
12% +1.5pp |
Note: YoY changes in constant euros. Loans and advances to customers excluding reverse repos. Customer deposits excluding repos.
(1) Excluding Puerto Rico and Bluestem disposal impact. Otherwise, loans -3% and deposits +1%.
(2) RoTE adjusted for excess capital in the US: 23%.
We have set an specific target to strive to reduce emission intensity on power generation portfolio by 20301
EUR 1 bn in H1’21
Santander has issued to date: 3 Green bonds (EUR 3 bn)
EUR 8 bn in H1’21;
EUR 42 bn since 2019
2025 goal: EUR 120 bn
#1 by deals
Top 3 by volume
In Bloomberg Clean Energy & Dealogic Wind, Renewables Fuel
Dealogic - Regional Renewable Energy MLA Rankings – H1’21.
Bloomberg NEF Clean Energy - Asset finance - lead arrangers – H1’21.
(1) Going from 0.23 tCO2/MWh to 0.11 tCO2/MWh.
> 60% Independent directors
40% Women
Including our public target on women in senior positions
(1) Also including contribution to the climate project, development of green finance and contribution to financially empowering people.
Santander finance for all: providing access, microfinance and financial education
Financially
empowering
people
1.1 mn in H1’21;
6.0 mn since 2019
2025 goal: 10 mn
Microcredit
EUR 261 mn H1’21;
EUR 1.2 bn since 2019