Banco Santander S.A. (SAN) Q3 2022 Earnings Call Transcript

For the period ending September 30, 2022

October 26, 2022 4:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Begona Morenes

Good morning, everybody and welcome to Banco Santander’s Conference Call to Discuss Our Financial Results for the Third Quarter of 2022. Just as a reminder, by the results report and presentation we will be following today are available to you on our website. I'm joined here today by our CEO, Mr. Jose Antonio Alvarez; and our CFO, Mr. Jose Garcia Cantera. Following their presentations, we will open the floor for any and all questions you may have in the Q&A session.

With this, I will hand over to Alvarez. Mr. Jose Antonio Alvarez, the floor is yours.

Jose Antonio Alvarez

Thank you, Begona. And good morning to everyone. Thank you for attending to this conference. So I should say, to start this presentation that while we've been developing our activity in unusual, highly uncertain macro environment. In this environment, we've been able to keep growing our customer base and translating this into volumes growth and revenue growth. So the most remarkable change in the quarter broadly has been the acceleration. Starting the acceleration of NII, we took it out of 5% quarter-on-quarter per this is the main event on the back of activity levels and starting just starting to raise interest rates, particularly in the Euro Shang where our exposure to higher grading or higher rate is high.

Our profitability improved significantly. Return on tangible equities stays in 13.6%. EPS is growing at 31%. On the back of the profits, we got in the quarter €2.4 billion after serving €181 million shares net of tax on minorities in Poland, the gross number was north of €300 million related to the new payments holiday regulation, excluding net profit grew 11% quarter in the quarter 10% in constant years. In the nine month our profit attributable profit, we've got €7.3 billion increase in 25% with a positive impact of the currency is being plus 14% in constant Euros. The credit quality on our balance sheet show no signs of duration so far in the quarter overall because of remain below 1% and we continue to generate capital good base.

Finally, as you already know, we continue to pay value to our shareholders both in terms of shareholder remuneration with the cost dividend we announced that the board approved last month and the growth in tangible net asset value per share that provides a combined within our plus cash dividend per share up 11%. Going into more detail into the region you see that the growth is well spread across the board about in all the process is fairly balanced growth. We cannot say that we are growing. Yes, in one part of the business we are growing while across the board in constant Euro loans increased 2% quarter-on-quarter €17 billion, which increases in almost all countries deposits were up 2% also in the quarter with some shift towards tying the policies given the current interest rate environment. Intellectual month loans and losses we do 7% and 6% in constant years.