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Santander boosted by strength of used car sales in US and UK housing market

Santander’s revenue during Q2 rose by 6% to €11.3bn

Strong demand for used cars in the US and homes in the UK allowed the Spanish Banco Santander to secure a strong increase in its Q2 profits.

For the second quarter ending in June the banking giant reported a net profit of €2bn, compared to a loss of over €11bn year-on-year as it stomached write downs on the value of a number of its operations.

Santander’s revenue during Q2 rose by 6% to €11.3bn, while its expenses rose at a more gradual pace by 4%.

Out of all of Santander’s key markets, it generated the largest underlying profit from America during the first half of 2021, in addition to making a series of acquisitions in recent weeks. This comes as a surprise to many who expected Santander to gradually ease away from the US market as its competitors have done.

Santander’s car financing operation is one of the biggest in America, and soaring used car prices have pushed its profit levels in the region.

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In addition to the US, Santander performed strongly in the UK, where it is one of the top mortgage providers. The bank benefited from Britain’s booming housing market, which performed above expectations during the pandemic on support from the UK government.

Nathan Bostock, chief executive officer, commented: “we have delivered another strong financial performance while continuing to support our customers, colleagues and communities through the challenges of the pandemic. The results are testament to the hard work of our teams and reflect the strategic decisions we have taken over recent years as well as the economic recovery.”

“We have delivered good growth in net interest income and strong mortgage lending. At the same time, we have continued to focus on enhancing our customer experience and improving efficiency,” Bostock added.

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