Santander nordic third quarter results 2021

  • The Group’s gross outstanding loans to customers were 177.2 Bn NOK at Q3 2021, a decrease of 2% or 4.1 Bn NOK compared to Q4 2020, mainly driven by foreign exchange.
  • Net interest income has decreased by 7% year to date (YTD) Q3 2021 compared to YTD Q3 2020. This is mainly driven by shift in portfolio mix. Insurance revenue is up 25% and losses are down 17% in the same period.
  • The Group’s profit before tax was 2 363 MM NOK in YTD Q3 2021, reflecting an increase of 4% compared to the same period last year.

A strong auto portfolio

In local currencies we have an increasing Auto portfolio due to good cooperation with dealers and partners. The Group has financed 66.598 new and 137.145 used cars year to date, Q3 2021, up 18.0% and 2.6% respectively compared to the same period in 2020.

Global shortage of semiconductors that especially has had a negative effect on the supply of new cars in Denmark, Finland and Sweden, leading to a 17% decrease in the total market of new car sales. SCB however saw an increase in new business sales on Auto of +7% in the same period driven by high volumes in Sweden from our partners.

SCB’s share of the Norwegian market has increased during the year. In Q3, SCB’s share of the auto finance market is 26%, up from 23,1 in Q1. The Group continues being the Nordic market leader in auto finance.

We have, together with our partners delivered fantastic results in auto finance, says Michael Hvidsten CEO of Santander Consumer Bank AS.

Financing the green shift

Santander is already today a major player in financing electrical vehicles. All Nordic markets are experiencing an increase in the sale of hybrid and electric vehicles.

It is encouraging to see that the revolution of electric vehicles continues with full speed in our region, and the Groups finance penetration on EVs continues to be higher and growing faster than for other vehicles. In 2021, 30% of new vehicles financed by the Group in the Nordics are electrical vehicles. We see this as an important part of our responsible banking-strategy, says Hvidsten.

In the Consumer Loans portfolio, SCB has seen a downward market trend in all markets due to regulatory changes and Covid impacts. SCB’s portfolio has to a large extent followed the market.

Following strong growth in 2020, volumes in deposits from costumers have reached a mature level. Deposits decreased with 4% in Q3, compared to year end 2020, mainly driven by foreign exchange.

See the full report here:

Q3 Financial Report