Banco Santander and Lloyds Bank Smash Profit Records
Spanish giant Banco Santander and UK’s Lloyds Bank have both smashed their profit records this quarter. Skyrocketing interest rates and growing customer numbers have sent their earnings soaring.
Banco Santander’s Record-Busting Quarter
Banco Santander reported a net profit of €2.9 billion (£2.5 billion) in Q3, up a staggering 20% year-on-year. CEO Ana Botin hailed it as “another record quarter,” thanks to nine million new customers and a 13% jump in revenues.
With profits hitting €8.14 billion after nine months, Santander is eyeing the £10 billion annual profit milestone. The bank now serves a massive 166 million customers worldwide, boosted by higher interest margins from the global rate hike.
Lloyds Bank Rakes in Nearly £2 Billion
Lloyds, Britain’s biggest mortgage lender, posted a hefty £1.9 billion profit in Q3. That’s up massively from just £576 million the same time last year.
The banking group, which owns Halifax and Bank of Scotland, pulled in £3.4 billion in net interest income. Though this slipped slightly from the previous quarter due to higher saver payouts, Lloyds still rides the wave of booming interest rates.
Interest Rate Hikes Boost Banks but Squeeze Borrowers
The Bank of England’s steady rate hikes since 2021 have fattened lenders’ margins but put pressure on mortgage holders and buyers. Fixed two-year mortgage rates have jumped to 6.34%, hitting homeowners hard.
The surge in profits reflects customers paying more for mortgages, loans, and credit cards, signalling both booming banking sectors but tougher times ahead for borrowers.
