Banco Santander Puerto Rico reported a profit for the third quarter of 12 million euros and 64 million through September, an increase of 69.8 percent year-over-year. The increase was attributed to the bank’s strategy of reducing the cost of liabilities (including customer deposits) and a good performance by the allowance for credit losses.
In terms of activity, the bank’s total credits showed a slight 2 percent growth, generated by a strong increase in consumer and commercial portfolios (up 25 percent and 4 percent, respectively), which offset the reduction strategy of mortgage loans. Meanwhile, customer deposits grew 3 percent for the quarter. The ratio of loans to deposits at quarter end stood at 106 percent, the bank said in its to quarterly report released Thursday.
Santander Puerto Rico’s efficiency rate is maintained at a 56.8 percent level and the recurrence amounted to 39.6 percent, while risk indicators continue on a positive trend, said the bank, whose headquarters are in Spain.
The bank’s nonperforming loan ratio at the end of the third quarter was 6.33 percent, with a coverage of 62 percent, an improvement of 213 bp and 237 points, respectively, over the same month last year, due to the rebalancing of its loan portfolios and the strong performance of the commercial portfolio, it said.
In the document, Santander Puerto Rico noted that given the island’s tough macroeconomic conditions, it has focused on selective growth strategies, including: a 12 percent growth of its credit card portfolio, boosted in part by the Santander JetBlue co-branded product, of which there are 20,000 cards in circulation; the newly launched “Select” customer model which it said is “exhibiting positive initial results,” among other business components.
Santander Puerto Rico has 115 branches, 412,000 customers and market shares of 11.1 percent in loans, 13.6 percent in deposits and 21.2 percent in mutual funds.