Santander posts surge in net profits

Spain’s biggest lender reported total income of €14.9bn, up 10% on the same three months a year previously, or 15% once the effects of foreign exchange were stripped out.

Net operating income rose 14% to €8.4bn, while attributable profit jumped 20% to €2.9bn. Analysts had been expecting net profits closer to €2.8bn.

Net interest income - the difference between money made on loans and the money paid out in deposits - rose 16%. Customer numbers increased by 9m over the past year.

Central banks around the world have increased rates as they look to tackle surging inflation. The European Central Bank has increased the cost of borrowing to an all-time high of 4%, while the Bank of England has increased rates 14 times since December 2021, to 5.25%.

Ana Botin, executive chair of Santander, said: "The decision to align our retail and commercial and consumer finance businesses with our strategy is a key step in leveraging the strength of our global network further to better serve our customers and create greater value for our shareholders.

"While the external environment is increasingly uncertain…I am confident that we will achieve our 2023 targets given the positive momentum, which we also expect to carry into 2024."