Santander profits tumble 6% with margins down €215 million

Santander Portugal (formerly Totta), posted profits of €728.1 million to September, down 6.4% on the same period last year, hammered by a fall in interest rates.

The financial margin, which corresponds in large measure to the difference between interest charged on loans and interest paid on deposits – suffered a fall of 17.3% (down €215 million) to €1.03 million, even though the bank led by Pedro Castro e Almeida had managed growth in its credit portfolio, meaning more companies and families took advantage of the lower interest rates and taxes to apply for mortgages.

The bank loan portfolio increased by around 9% to €52.2Bn with mortgage concessions up 7% to €24.7Bn (on the back of the public guarantee through which the bank granted mortgages to almost 1,000 young people aged 35 or under).

The portfolio of loans to companies get 10% to €25.2Bn and was worth more than the total amount of mortgages approved.

Revenues from bank charges helped to counter a shrinking margin to reach €365.2 million after increasing 5.9% in the first nine months log the year. Nevertheless, bank product – a financial tool or service offered by a bank to its customers, such as savings accounts, loans, and mortgages. These products help individuals and businesses manage money, access credit, save, and conduct secure transactions. Common examples include checking accounts, debit and credit cards, and online banking services – fell 11.6% to €1.4Bn.