Spanish financial services institution Santander’s interim results posted on Friday August 12 detailed 33% year-on-year (YoY) growth in bottom-line profit to £750mln, underpinned by £6.7bn of net mortgage lending.
Net interest income of £2.1bn was an 11% YoY improvement, following the impact of base rate increases and higher mortgage lending.
The bank noted a 12% reduction in operating expenses attributable to Santander’s multi-year transformation programme, although inflation is expected to impact year-end results.
Over £100mln in credit impairment charges were noted due to deteriorating economic conditions.
Customer deposits decreased £2.2bn sequentially.
“Despite the uncertain operating environment, the hard work of our teams across the business has helped us deliver a strong set of results for the first half of the year,” chief executive officer Mike Regnier stated, adding: “Our ongoing transformation programme has realised £572m savings which has helped to mitigate the impact of rising inflation.”
Full-year outlook
Santander expects net mortgage lending to be in line with market growth, while net interest income is expected to exceed 2021 results.
Despite the rising cost of living, Santander has yet to note any “significant” deterioration in credit quality.
London-listed BNC shares were up 1.5% on the day to 225p as of 09:50, and 11% down year to date.