Santander achieved an attributable profit of €6,059 million in the first half of 2024, up 16% in current euros versus the same period last year, as strong growth in net interest income in all the global businesses and regions, supported by four million more customers, and very good cost control, more than offset the expected year-on-year growth in provisions.
The group continued to increase profitability and shareholder value creation, with a return on tangible equity (RoTE) of 15.9%, or 16.3% if the impact of the temporary banking levy in Spain, which was registered in full in the first quarter (€335 million), was distributed evenly across the year; earnings per share (EPS) of €0.37, up 19%, and tangible net asset value (TNAV) per share of €4.94 at the end of the first half. Including the cash dividend paid in November 2023 and the final dividend paid in May, total value creation (TNAV plus cash dividend per share) increased 12%.
As a result of the strong momentum within the business, Santander has upgraded its 2024 targets and is now expecting high-single digit revenue growth for the year (an increase from its previous target of mid-single digit growth); an efficiency ratio of c.42% (from below 43%); and RoTE of over 16% (from 16%). The targets of cost of risk at c.1.2% and fully-loaded CET1 above 12% after Basel III implementation are maintained.
1 Variations are year-on-year unless otherwise stated.