Santander’s FY 2023 earnings exceed its own targets and analyst forecasts.
The bank posts positive contributions from all regions, notably Europe. For example, in the fourth quarter, net profit in Europe rises by 34% y-o-y.
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Net interest income increases by 16%, reflecting growth in customer activity in 2023. For the full fiscal, Net fee income increases by 5%, with good performance in the Americas, CIB and Payments.
Revenue is ahead by 13% supported by income growth in all regions and particularly strong growth in Wealth (+22%) and CIB (+17%).
Other highlights include an improvement in the cost-income ratio to 44.1%.
Overall credit quality remains robust, with cost of risk in line with the target for the year at 1.18%.
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By GlobalDataAs expected, loan provisions rise – up by 19% – reflecting higher interest rates and inflation.
Ana Botín, Banco Santander executive chair, said: “2023 has been a pivotal year for Santander. We delivered record results and met all our targets in the right way. We added five million customers, growing revenues and profits at double digits. We also increased TNAV plus cash dividend per share up 15%. As a result, we will return €5.5bn to shareholders from 2023 earnings.
2024 targets: RoTE 16%, cost-income ratio <43%
“We are deploying our own cutting-edge technology globally to fully leverage our global and in-market scale and taken the final steps towards creating five global businesses.”
Santander targets for 2024 are mid-single digit revenue growth, an efficiency ratio below 43%; cost of risk of c.1.2%; RoTE of 16%; and fully-loaded CET1 above 12%.
