Banco Santander posts record profit as rates rise

Spanish banking giant Banco Santander reported on Thursday record profits for 2022, as higher interest rates boosted its earnings and offset the costs from soaring inflation.

The bank posted an annual net profit of 9.6 billion euros ($10.6 billion), up 18 per cent from 2021 and higher than forecast by analysts polled by financial data firm FactSet. “2022 was another strong year for Santander as we made further progress in growing our customer base profitably, while maintaining a rock-solid balance sheet,” Banco Santander head Ana Botin said.

Central banks have hiked interest rates worldwide in an effort to tame runaway inflation, which jumped after economies emerged from Covid restrictions, and surged higher still after Russia invaded Ukraine last year.

Botin said central banks and governments are expected to continue to focus on bringing down inflation this year.