Sovereign Bank Reports $438.1 Million Net Income In 2012 - 38.3% Increase Versus 2011
BOSTON, Feb. 4, 2013 /PRNewswire/ --
- Third Consecutive Year of Profitability
- Strong Loan Growth
- Continued Improvement in Asset Quality
- Tier I Common Capital Ratio of 12.86% is among strongest in U.S.
- Investing in the Communities We Serve and in Education
Sovereign Bank, N.A. today announced a 38.3% increase in net income to $438.1 million in 2012 versus $316.9 million in 2011. Sovereign also reported net income of $69.7 million for the final quarter of 2012, which brings the Bank to its third straight year of profitability.
"As we close 2012, we reflect on the many milestones the Bank has achieved this year, beginning with our conversion to a national charter last January," said Jorge Moran, Sovereign Bank President and CEO. "This change enabled the Bank to expand its retail and commercial capabilities to better meet the needs of clients. The new charter has enabled Sovereign to expand its wholesale banking transactions. We continued investing strongly in the franchise and showed double-digit growth in profits. We also grew our staff, with 340 new team members, making approximately 8,900 Sovereign-Santander employees across the footprint."
Lending Continues to GrowLending to commercial and industrial businesses grew by 23% during 2012 compared to 2011, significantly higher than the industry, where growth was 13%. Net interest income was stable, at $1.8 billion, and fees and other income grew by 14.6% to $611.5 million for the year when compared to 2011. Sovereign Bank had a strong year in loan production in the areas of residential mortgages, small business lending and corporate banking. Total loan production for 2012 was $20.5 billion, a 28.3% increase over loan production during 2011. Outstanding total loan balances grew 3.1% during 2012 to $53.2 billion. Additionally, residential mortgage production was up 37.0% in 2012 when compared to 2011.
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