Madrid, Spain–Spanish lender Banco Santander reported on Wednesday a record 11.1-billion-euro ($12 billion) net profit for 2023 on the back of higher interest rates and a rise in global clients.
The strong results helped Banco Santander offset the impact of a windfall tax on banks imposed by the government of socialist Prime Minister Pedro Sanchez to help households cope with soaring consumer prices.
It also cushioned the blow from a 54-percent devaluation of the Argentine peso announced last month by the country’s new president, Javier Milei.
The bank’s 2023 net profit was 15 percent higher than in 2022, when it raked in 9.6 billion euros, and better than the 10.6 billion euros forecast by analysts surveyed by financial data firm FactSet.
Banco Santander said it would return 5.5 billion euros to shareholders.
“2023 has been a pivotal year for Santander, in which we delivered record results and met all our targets in the right way,” said the bank’s executive chairwoman Ana Botin.
“I am confident that 2024 will be even better for Santander, with strong momentum across our global businesses, despite heightened geopolitical risks and a slowing global economy,” Botin said in a statement.
The bank added five million customers last year, bringing the total to 165 million worldwide.
European lenders have reported bumper earnings after central banks worldwide hiked rates in efforts to bring inflation under control.
Retail banks in turn have raised rates on loans, including mortgages.
