These very recurring results are due to the group’s diversification and to the right geographic mix between emerging and mature markets. As I’ve pointed out, we have a strong presence in growth markets, which generates 56% of the group’s profit. Of the rest, 31% of the profit is generated in mature markets, where provision levels are still fairly stable, and 13% of the profits comes from markets where cyclically high provisions and therefore, with profits still depressed in relation to their potential towards, which we must move in the next quarters and years.The Group’s international expansion in the last few years has enabled us to build a business portfolio which is better than those of other savings national banks. Today, we have a stronger presence in emerging markets than our major competitors. We have very strong local brands with critical mass, whilst many of our competitors have banks without sufficient scale in many markets. And this has enabled us to have a better profit mix and a more stable and recurring profit. As a result of all of that, we are in an excellent position to normalize our profit.
Banco Santander's CEO Discusses Q1 2012 Results - Earnings Call Transcript
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