H1'22 Financial Results and PagoNxt Highlights
H1'22 Summary
Asset quality remains robust with LLPs normalizing following releases in 2021
Constant € bn
Loan-loss provisions
Credit quality
2.1
1.9
2.3
2.6
NPL ratio
2.2
1.6
Q1'21
Q2
Q3
Q41
Q1'22
Q2
Jun-21
Mar-22
Jun-22
COR²
0.94%
0.77%
0.83%
3
3.22%
3.26%
3.05%
Coverage ratio
73%
69%
71%
Stage 1
€904bn
€967bn
€998bn
Stage 2
€70bn
€68bn
€66bn
Stage 3
€33bn
€36bn
€34bn
.
In Q2, LLPs increased mainly due to Poland (CHF mortgages), the US (macroeconomic outlook) and Brazil (retail)
•
YoY comparison impacted by releases in the UK and the US in Q2'21. Rises also in Brazil and Poland
.
Continued quarterly NPL ratio improvement in most units. The fall in Spain in Q2 was accelerated by portfolio sales
CoR remained well below 1%
Santander
(1) Includes overlay partial release.
Provisions to cover losses due to impairment of loans in the last 12 months / average customer loans and advances of the last 12 months.
Considering annualized H1'22 provisions, cost of credit would be 0.91%.
(3) New definition of default (NDD) applied in Q1'22 (impact on the NPL ratio of +19bps).
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