Financial Performance Update H1'23
Concluding remarks
Financial System
▸ Secured lending growth to slow rapidly in 2023 as demand hit by sharp rises in mortgage rates. Unsecured lending growth to remain robust as
households use credit cards. Corporate borrowing growth to weaken in response to declining investment intentions and higher interest rates
Retail deposit flows expected to fall back as cost of living pressures bite. Corporate deposit growth weakens as firms use deposits to navigate
through the challenging high inflation environment
Strategy & Business
▸ We have a well-established market position: 14mn active customers, 446 branches, top 5 retail mortgage provider and commercial lender
▸ Enhanced digital capability attracted a further >323k digital customers during 2023
76% of our refinanced mortgages were retained online, 91% of current account openings and 98% of credit card openings were made through
digital channels
001 Results
▸ Total income grew double-digits driven by strong NII performance
▸ Double-digit net operating income increase on the back of further efficiency improvements
Cost of risk stable at low levels, as LLPs remained contained despite the higher interest rate environment
▸ Profit grew supported by higher revenue, efficiency gains and contained cost of risk evolution
Santander
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