The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.
BANKINGTHE EUROMONEY 25

Santander: UK and US banks power a rebound

After years when the UK and the US banks were Santander’s problem children, those markets are now leading its recovery.


After Covid dragged Banco Santander down to its first annual loss in 2020, the Spanish group bounced back to profit in 2021. Those developed markets that previously dragged the bank down are now powering its recovery.

Group chief executive José Antonio Alvarez expects this trend to continue in 2022, with profits growing faster in Europe than South America and North America, in which it includes Mexico and the US. That will lead to a return above its cost of equity in Europe, says Alvarez, as the continent helps it to a return on tangible equity target of between 13% and 15%.

Expectations of higher interest rates help. But it’s also to do with cost cuts in Spain and the UK. By the end of 2022, the bank will have reduced its cost base in Spain by more than a quarter over the last three or four years, notes Alvarez.

jose-a-alvarez-official-345.jpg
José Antonio Alvarez

He adds that the level of provisioning in Spain in 2022 will probably be half that of 2021, when local peers released provisions faster.

Perhaps


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree