The number of sales through mobile doubled in the year. Digital customers connect to the bank on average five times a week, which has helped increase the proportion of sales made through digital to 36% out of total sales. The rapid growth in digital adoption continued, with the number of customers using internet banking or mobile increasing by five million to 37 million, 52% of total active customers. Group costs fell 0.4% in real terms (without inflation) as the bank progressed in its strategic aim to operate as One Europe, while North America improved synergies as a region, and South America maintained a disciplined approach to cost management. The bank continued to leverage its scale and global capabilities to improve operating performance with a new regional management structure, new efficiencies and the successful conclusion of the Popular integration. 95% of the banks income came from customer revenues (net interest income plus net fee income), well above the average of its competitors, demonstrating the quality and stability of the banks earnings. Year-on-year (+3% on a constant currency basis), supported by strong growth in customer revenues in the Americas, Santander CIB (corporate and investment banking) and Wealth Management & Insurance (private banking, asset management and insurance). Santander generated record total annual revenues of more than 49 billion, up 2% The banks commercial and digital transformation also continued to improve the quality and recurrence of its revenues, with net interest income (revenues generated by interest-bearing assets minus costs of deposits) increasing to 35,283 million, up 3% (+4% on a constant currency basis). In 2019, the results continued to reflect solid underlying trends, with customer revenues (net interest income and net fee income) increasing, costs beginning to reflect the synergies obtained in various units and the cost of credit, the rate at which the bank needs to provision when lending money, remaining at very low levels (1%). Excluding net charges, underlying profit was 2,072 million in the quarter, up 2% (+5% on a constant currency basis), with an underlying return on tangible equity (RoTE), a key measure of profitability, remaining among the highest of our peer group at 11.6% (11.8% for the full year). In the fourth quarter alone, attributable profit increased to its highest level ever at 2,783 million (up 35% YoY). Year-on-year (+3% on a constant currency basis), driven by further growth in customers and business volumes. As a result of the very strong performance we are proposing to increase our cash dividend per share again this year, meaning that cash DPS has more than doubled since 2014. We are well on track to achieve our medium-term goals and expect to deliver high single digit average annual earnings per share growth over the next three years, while continuing to invest for the future. Our South American business continued to generate healthy growth we maintained strong momentum in North America, with the US delivering among the fastest growing underlying profit of all markets and in Europe we achieved a 10% return on tangible equity, despite a challenging interest rate environment.Īcross the Group we see significant opportunities to continue growing our business in a responsible way - further improving operating performance by leveraging the strength of the Group, advancing our digital transformation, including the development of the Santander Global Platform, while continuing to optimise capital allocation. Our focus on customer loyalty, geographic diversification and scale drove strong operating performance across all regions. This allowed us to further strengthen our capital base and grow our CET1 capital ratio to 11.65%. We earned the loyalty of our customers, delivering record annual revenues and strong underlying profit. Our 2019 results show we are successfully executing on our strategy, generating predictable, sustainable and balanced growth, with a very strong fourth quarter, confirming underlying positive trends. Banco Santander Group Executive Chairman, Ana Botín, said:
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