Banco Santander has closed the first nine months of the year with a record profit of 9,309 million euros. This is a growth of 14% compared to the same period of the previous year in a context of interest rates that are going down and with doubt as to whether the bank tax will continue. Its CEO, Héctor Grisi, criticized the tax at a press conference for its structure and because he understands that financial entities already pay enough taxes.
“Of course we don’t see it as a good thing that they leave it permanent,” Grisi said. “It harms growth, it discriminates, it leaves us at a disadvantage compared to other countries,” he listed. “It is an income tax, it is poorly structured. If they go on those same bases it is completely wrong. In a bad cycle it will hit us” because “it can generate 50,000 million less credit. “We do not see any other country that raises it beyond 2024.”
“We banks already pay enough taxes,” Grisi stressed. “We will do everything that has to be done to make sure this does not happen.” However, the CEO of Santander has assured that they are not speaking with the Executive. “We have not had, to my knowledge, any interaction with the Government nor have they given us any indication of where it is coming from.”
And regarding the possibility of taking business away, if the tax is maintained, as some energy company has assured, Grisi has pointed out that we will have to wait and see what happens. “As we say in Mexico, first we need the chicken to make the broth,” he said ironically. “We will see how the tax comes and we will take appropriate measures. The bank is Spanish and we work for Spain,” he clarified. In fact, he stressed that “Spain is tremendously important” for the bank. “We have no vision of taking business out of Spain, we want to continue growing.”
“We are always willing to dialogue. We can sit down and give the Government our position so that they understand why it inhibits credit. Many times decisions are made and I don’t know what will happen if a cycle of crisis comes and how it can affect. Delighted to have dialogue with the Government. We are always ready,” Grisi repeated.
And regarding Sumar’s proposal to launch a fixed-rate mortgage linked to the 10-year bond, the CEO stated that “if a market is working as well” as the current one, “don’t put your hand in it. You destroy it.” The bank points out that the bank’s mixed mortgage is at a rate of 1.75, when the ten-year bond rate reaches 3%.
Record profit
The entity chaired by Ana Botín explains to the National Securities Market Commission (CNMV) that it has obtained “strong growth in income in all global businesses and regions” and that it has increased the number of clients by five million.
“We have achieved strong and profitable growth, with an increase in earnings per share of 19%,” says Ana Botín in a statement. “The interest margin and commission income increase, the credit quality is solid, and the transformation allows us to increase income well above costs,” he lists.
“All this demonstrates both the strength of our diversification by business and countries, as well as the progress in the execution of our strategy. As an example of this transformation, our core Retail and Consumer businesses, which together represent more than 70% of the business, increased revenue by 8% and reduced costs by 1% in constant euros. In an increasingly volatile geopolitical environment, we are convinced that we will continue with this strong momentum both during the rest of the year and in 2025, meeting all our objectives,” concludes the president of Santander.
Regarding the details of its results, the bank indicates that its interest margin increased by 8%, to 34,682 million euros, thanks to growth in all businesses. And commission income increased by 5%, to 9,666 million euros. In constant euros, they increased by 6% due to greater activity in all global businesses.
Santander thus highlights that all its businesses work and that its profit tax was 4,246 million euros, “13% more, which represents an effective tax rate of 29%.” In the financial information it also indicates that the tax was recorded in the first quarter, when it recorded 335 million for “the temporary tax on income obtained in Spain.”
The record results respond to the “resilience of the business,” the CEO of Santander said at a press conference. “These are more sustainable and less volatile results than those of our competitors,” he stated. In addition, they point to “prudent risk management.” “We are on track to exceed the objectives we set in January and updated in June,” which includes revenue growth close to 10%.
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