A favorable interest rate environment and solid growth in new lending business gave the Austrian financial institution another record result.
We are very satisfied with the past financial year. After our record results in 2022, we were able to increase again in 2023. The interest rate environment was generally favorable for banks. Although we were significantly more restrictive in granting loans in some loan segments due to inflation, we were able to further expand our new loan business.
Olaf Peter Poenisch, CEO of Santander Consumer Bank
Vienna (OTS) – Santander Consumer Bank Austria achieved record results for the second time in a row in the 2023 financial year. Profit after taxes rose by five percent to 60.6 million euros in the previous year. The bank benefited from the increased interest rate environment caused by the European Central Bank (ECB)’s key interest rate increases and the continued growth in new lending business.
Olaf Peter Poenisch, CEO of Santander Consumer Bank, is pleased with the excellent result: “We are very satisfied with the past financial year. After our record results in 2022, we were able to increase again in 2023. The interest rate environment was generally favorable for banks. Although we were significantly more restrictive in granting loans in some loan segments due to inflation, we were able to further expand our new loan business.”
Growth in new lending business
New credit business rose by four percent to 2.417 billion euros, with the growth coming primarily from installment and vehicle financing business. The cash loan volume fell slightly due to stricter risk regulations. Motor vehicle financing accounted for the largest share of new business at 1.763 billion euros (+5 percent), followed by cash loans at 482 million euros (-5 percent) and partial payments at 171 million euros (+26 percent). The loan portfolio increased by ten percent to 3.319 billion euros.
The bank recorded a significant increase of 32 percent in savings deposits. The reason for this is the increase in savings interest rates on the Austrian market as a result of the interest rate change initiated by the ECB in July 2022. Deposits amounted to 2.72 billion euros at the end of 2023. Of these, 59 percent were overnight deposits and 41 percent were tied deposits. Last year, the financial institution was able to attract 14,000 new savings customers with attractive interest rate offers. The bank’s cost-income ratio was 39.8 percent. With an equity ratio of 15.2 percent, the bank is also well above the minimum regulatory requirements.
Over 330,000 customers
Santander Consumer Bank Austria is part of the Santander Group, which is one of the largest banks in the world in terms of market capitalization. In Austria, the bank specializes in consumer credit and savings business. In addition to the cash loan with free use, the core products also include partial payments via retail and vehicle financing (loans and leasing) as well as card products (Santander Card). The bank also offers daily and fixed-term deposit accounts in the savings area. The bank has an Austrian banking license and is subject to statutory deposit insurance. It looks after over 330,000 customers in Austria, of which almost 60,000 are in the savings sector.
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About Santander Consumer Bank
Santander Consumer Bank GmbH is Austria’s specialist for consumer loans with the aim of making mobility and everyday items affordable for people. The product portfolio includes cash loans, installments, debit cards, vehicle loans, leasing and insurance. In the savings area, the offering includes daily and fixed-term deposit accounts. Santander is a close partner of domestic retail in Austria. With more than 3,000 partnerships in the retail and automotive trade, the company is the leading manufacturer-independent financier of cars, motorcycles and consumer goods. As of the end of 2023, Santander employs over 500 people and operates 28 branches and a customer service center in Austria. Santander serves 330,000 customers. Based in Vienna, the company operates with an Austrian banking license and is subject to statutory deposit insurance.
Santander Consumer Bank in Austria is part of Banco Santander (SAN SM, STD US, BNC LN), founded in 1857, a leading banking group for private and business customers based in Spain. With presence in ten core markets in Europe and America, Banco Santander is one of the largest banks in the world in terms of market capitalization. As of the end of 2023, the group operates 8,500 branches, employs over 212,000 people and serves 165 million customers.
Questions & Contact:
Santander Consumer Bank GmbH
Mag. Robert Hofer
Phone: +43 (0)676 8131 9520
E-Mail: robert.hofer@santanderconsumer.at