Spanish banking giant Banco Santander said on Tuesday that net profit exceeded expectations in the first three months of this year thanks to its diversified geographical footprint, rising interest rates and increased customer numbers.

Santander said in a statement that its bottom-line net profit jumped by 58 per cent to €2.5 billion in the period from January to March.

“We delivered a strong first quarter, growing the number of customers we serve and increasing revenues by eight per cent, with further improvements in efficiency, and credit quality remaining solid,” said chief executive Ana Botin. “Our geographic and business diversification continues to provide a cornerstone for growth and is a key reason why Santander remains among the most efficient and resilient banks in our peer group, with profitability well above our cost of capital.”

The first-quarter figures exceeded the analyst forecasts compiled by Factset which had been pencilling in net profit of around €2.35 billion.

Santander said that it attracted seven million new customers in the three-month period, bringing the total number of clients worldwide to 155 million. 

Santander said that it attracted seven million new customers in the three-month period, bringing the total number of clients worldwide to 155 million

“All regions delivered strong performance, including Europe, where profitability rebounded,” Botin said. 

Santander said it “remains confident it will achieve the 2022 targets outlined in February, (including) mid-single digit revenue growth.”  

And the executive board “intends to maintain its policy to distribute 40 per cent of underlying profit to shareholders, split evenly between cash dividend and share buybacks,” it said.