- Santander reports an ordinary profit of €3.426bn for the first half, a 24% increase on last time.

Lending reached €826,707 million, 13% more than the same period last year. Deposits and mutual funds grew 12% year-on-year and now total EUR 823,482 million. In the first half, lending rose EUR 65,000 million and customer funds €51,000 million.

Revenues grew 12% and costs 11%, which allowed net operating income to grow 13%, to EUR 12,256 million. The efficiency ratio improved 0.4 point, to 46.9%, one of the best in the sector.

The fully loaded CET1 capital ratio improved 0.16 point in the quarter to 9.83%. Return also improved, 0.6 point, meaning ROTE of 11.5%.

Profit grew in the group’s core markets. Europe contributed 54% (United Kingdom 21% and Spain 16%), Latin America 37% (Brazil 20% and Mexico 7%), and US, 9%.

• Spain: Attributable profit reached EUR 771 million (+50%). The reduction of costs by 4% and loan loss provisions by 37% are the key. Lending was stable and customer funds grew 6% year-on-year.

• United Kingdom: Attributable profit was EUR 1,029 million, 33% more (GBP 753 million, +18%). Revenues grew 5% and loan loss provisions fell 60%. Loans were up 5% and customer funds 4%.

• Brazil: Attributable profit reached EUR 1,007 million, 33% more (BRL 3,326 million, +39%). Revenues grew 9%, twice the growth of costs. Lending increased 16% and customer funds, 13%.

Chairman Ana Botín said: “The first half results show the soundness and consistency of Banco Santander’s business model. Profit grew in our ten core markets. Return, operational excellence and credit quality also improved. We will pay the first dividend against fiscal year 2015 in August and it will be entirely in cash.â€

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