"In 2021, Santander made the highest profit before tax in a single year in our history.”
Welcome to the Quarterly Shareholder Report where you can check the most significant information about Santander's share and the Group in the fourth quarter of 2021.
Browse from the home page to access each of the sections or move the cursor downwards to view the complete report.
“ Our 2021 results demonstrate once again the value of our scale and presence across both developed and developing markets, with attributable profit 25% higher than pre-covid levels in 2019.
Across all our regions and businesses, we are delivering solid and consistent top-line growth, with the US and UK as standout performers in 2021, and Brazil and Chile the most profitable banks in their peer group. These results are a credit to the hard work of all our team members.
The group achieved a record profit before tax of €15.3 billion thanks to disciplined capital allocation, prudent risk management, and further improvements in our efficiency and balance sheet strength, combined with a material increase in customer activity during the year.
Our relentless focus and progress on improving the customer experience, is allowing us to serve more customers in more ways, and we have added five million new customers in the last 12 months alone. Through PagoNxt and Digital Consumer Bank we expect to deliver group connectivity, leveraging our global scale, as well as faster growth in customers in the coming years.
We are focused on delivering profitable growth in a responsible way, and ESG matters have become even more material for our stakeholders. This is why we have focused our efforts on continuing to support our customers on their transition to a green economy, supporting financial inclusion and empowerment, and ensuring we do things the right way with a long-term vision while also delivering results over the near-term.
We are on track to meet our medium-term targets set out in 2019, despite the impact of the pandemic, and aim to achieve a RoTE of over 13%, cost-to-income ratio of around 45% and fully-loaded CET1 of around 12% in 2022.
Shareholder distributions are an important focus for Santander and 2021 was the first year that Santander undertook a share buyback as part of our total distributions to shareholders. We aim to maintain a payout ratio of 40% of underlying profit in 2022 through both cash dividends and share buybacks.”
Ana Botín, Group Executive Chairman of Banco Santander
*Including acquisition of SCUSA minority interest which closed on 31 January 2022 and the announced acquisition of Amherst Pierpont which is subject to completion, regulatory approval and other conditions.
START
EUR 2.538
31/12/2020
MAXIMUM
EUR 3.509
03/06/2021
MINIMUM
EUR 2.375
28/01/2021
END
EUR 2.941
31/12/2021
The global economy experienced a strong recovery this year thanks to the progress of vaccination programmes, that allowed the opening of economic activity and mobility, in a context of excess liquidity and expansionary fiscal policies. This positive performance, despite uncertainties regarding the surge of new covid-19 variants, favoured the rise in commodity prices and increased inflationary pressures, which rebounded in the US and the Eurozone to the highest levels in a decade.
This environment led to a widespread withdrawal of monetary stimulus by central banks in mature economies, each at its own pace. Given the strength of the labour market and high inflation, the Bank of England raised interest rates to 0.25% while the Fed announced its intention to start raising rates no later than mid-2022. On the other hand, the ECB maintains inflation is transitory and as such is limiting the withdrawal of stimulus to liquidity, not interest rates, by reducing its purchase programmes.
The main global equity markets ended December with significant aggregate gains in the year. The banking sector recorded an overall better performance, benefitting from the lifting of restrictions on dividend payments, favourable results of the US bank stress tests, and the improvement of the outlook for most European banks. the DJ Stoxx Banks rose 34.0% while the MSCI World Banks rose 22.6%, compared to the Ibex 35 7.9% increase and the DJ Stoxx 50 22.8% growth. Santander recorded a rise of 15.9%.
The Santander share ended 2021 up by
15.9%
Select comparables
31 december 2020 = 100.
of analysts recommend buying or holding SAN shares
61.3%
Buy
32.2%
Hold
6.5%
Sell
EUR 4.10
average target price
of analysts for
SAN shares
Source Bloomberg at 31/12/2021.
Cash dividend:
cents/share
In applying the shareholder remuneration policy for 2021, the Bank paid an interim cash dividend against 2021 results totalling EUR 4.85 cents per share. Additionally, a share buyback programme was carried out for a total of EUR 841 million, acquiring 259,930,273 own shares, equivalent to 1.499% of share capital.
First half remuneration:
A cash dividend of EUR 4.85 cents per share, which was paid on November 2nd 2021.
A share buyback programme was carried out for a total of EUR 841 million, equivalent to 1.499% of share capital.
The reduction in share capital via the redemption of shares is expected to be submitted for approval at the 2022 Annual General Meeting (AGM).
In accordance with the current policy of total remuneration of approximately 40% of underlying profit, split equally between cash dividends and share buybacks, the board will make a proposal regarding the remaining shareholder remuneration against 2021 results to the AGM, the final terms of which will be disclosed when the AGM is called.
153 mn
total customers in Europe and the Americas
TOP 31
in 10 of our markets
1. Market share in lending as of September 2021 including only privately-owned banks. UK benchmark refers to the mortgage market. DCB refers to auto in Europe.
Top 3
in customer satisfaction
(NPS)2 in 8 markets
Loyal customers
millions
Digital customers
millions
2. NPS – Customer Satisfaction internal benchmark of active customers’ experience and satisfaction audited by Stiga / Deloitte.
balanced between mature and emerging markets.
3. 2021 underlying attributable profit by region. Operating areas excluding Corporate Centre.
between customer segments.
Underlying attributable profit FY'21
In the quarter, the strength of our model enabled us to earn a profit of EUR 2,275 million, ending each quarter with an underlying profit exceeding EUR 2 billion, in an environment marked by the recovery of activity in all regions.
The Group’s underlying attributable profit in 2021 was EUR 8,654 million, 70% higher than in 2020 (+78% in constant euros), underpinned by the positive performance across regions, Digital Consumer Bank (DCB) and the global businesses:
In addition, considering the restructuring charge of EUR 530 million recorded in the first quarter, 2021 attributable profit was EUR 8,124 million, vs -EUR 8,771 million in 2020, mainly due to the recording of an adjustment to the valuation of goodwill in some units and deferred tax assets.
*Excluding net capital gains and provisions.
Well balanced Group profit.
(*) As a % of operating areas. Excluding the Corporate Centre.
% change / 2020 | |||
---|---|---|---|
EUR million | 2021 | EUR | Constant EUR |
Net interest income | 33,370 | 4.3 | 7.1 |
Total income | 46,404 | 4.0 | 6.9 |
Net operating income | 24,989 | 5.7 | 9.4 |
Underlying profit before tax* | 15,260 | 57.7 | 64.5 |
Underlying attributable profit to the Group* | 8,654 | 70.3 | 77.8 |
Attributable profit to the Group | 8,124 | — | — |
Loyal customers
millions
Digital customers
millions
Digital sales
% of total sales
In this environment, and excluding the exchange rate impact:
Loans to
customers
Customer
funds
Europe
60%
66%
North America
14%
13%
South America
14%
16%
Digital Consumer Bank
12%
5%
% operating areas. December 2021
% change/ 2020 | |||
---|---|---|---|
EUR million | 2021 | EUR | Constant EUR |
Gross loans and advances to customers* | 962,382 | 6.4 | 3.8 |
Customer deposits** | 881,987 | 8.2 | 5.7 |
Mutual funds | 188,096 | 14.1 | 13.3 |
Customer funds | 1,070,083 | 9.2 | 7.0 |
2021 vs 2020 | Total customers +3% YoY |
Revenue1 +7% YoY |
RoTE2 +529bps YoY3 |
% of Group’s Customer loans4 |
% of Group’s underlying profit5 |
---|---|---|---|---|---|
Europe | 46 mn | € 16.3 bn | 9.9% | 60% | 28% |
North America | 24 mn | € 11.0 bn | 24.6% | 14% | 29% |
South America | 63 mn | € 15.4 bn | 26.0% | 14% | 31% |
Digital Consumer Bank | 19 mn | € 5.3 bn | 14.8% | 12% | 12% |
(1) YoY changes in constant euros.
(2) Adjusted ROTE’s: adjusted based on deployed Group’s Capital calculated as contribution of RWA’s at 12%. Using tangible equity, Europe: 7.4%, North America: 13.1%, South America: 20.3%, Digital Consumer Bank: 14.0%.
(3) Underlying ROTE.
(4) Gross loans and advances to customers excluding reverse repos as in 2021.
(5) Underlying Contribution as a % of operating areas and excluding the Corporate Centre as in 2021.
€66 bn
Green finance since 20191
€27 bn
AuM in Sustainable funds3
>200%
YoY green finance in retail2
#1
Financial advisor in Project finance renewables4
(1) Only SCIB global business.
(2) All segments excluding SCIB and WM&I.
(3) AuMs classified as Article 8 and 9 funds (SFDR) from SAM, plus third-party funds and other ESG products according to EU taxonomy from Private Banking. We apply equivalent ESG criteria to SAM's funds in Latin America.
(4) Banco Santander SA emerged as the top financial adviser for renewable energy project financing in 2021, with a total deal credit of $10.3 billion and a market share of 28%, according to Bloomberg NEF’s 2H 2021 Clean Energy League Tables.
6
Geographies where we are Top 10 company to work for
ESG
Metrics included in executives' incentives
>26%
Women in senior
leadership positions
#1
Bank in Bloomberg Gender Equality Index
(1) Only SCIB global business.
(2) All segments excluding SCIB and WM&I.
(3) AuMs classified as Article 8 and 9 funds (SFDR) from SAM, plus third-party funds and other ESG products according to EU taxonomy from Private Banking. We apply equivalent ESG criteria to SAM's funds in Latin America.
(4) Banco Santander SA emerged as the top financial adviser for renewable energy project financing in 2021, with a total deal credit of $10.3 billion and a market share of 28%, according to Bloomberg NEF’s 2H 2021 Clean Energy League Tables.
Building a more inclusive society
7.5 mn
People financially empowered since 2019
1.4 mn
Microentrepreneurs supported since 2019
> €550 mn
Credit allocated to microfinance in 2021
8
Countries with microfinance initiatives underway
(1) Only SCIB global business.
(2) All segments excluding SCIB and WM&I.
(3) AuMs classified as Article 8 and 9 funds (SFDR) from SAM, plus third-party funds and other ESG products according to EU taxonomy from Private Banking. We apply equivalent ESG criteria to SAM's funds in Latin America.
(4) Banco Santander SA emerged as the top financial adviser for renewable energy project financing in 2021, with a total deal credit of $10.3 billion and a market share of 28%, according to Bloomberg NEF’s 2H 2021 Clean Energy League Tables.