Banco Santander Net Profit Up 14.3% in 1st Quarter -- Update
April 26 2017 - 2:36AM
Dow Jones News
By Jeannette Neumann
MADRID--Banco Santander SA (SAN.MC) said Wednesday that net
profit rose 14.3% in the first quarter from a year earlier, as the
bank made progress boosting its capital ratio.
Santander, one of Europe's largest lenders, said net profit was
EUR1.87 billion ($2.05 billion) in the quarter, compared with
EUR1.63 billion a year ago. That beat analysts' estimates that the
company would report a net profit of EUR1.75 billion in the latest
period, according to a poll by data provider FactSet.
Fees were particularly strong in the first quarter, rising 18.6%
to EUR2.84 billion year over year.
The Spanish lender said net interest income in the first quarter
was EUR8.4 billion, compared with EUR7.62 billion a year earlier.
That beat analysts' estimates for net interest income of EUR8.14
billion, according to FactSet.
Net interest income, a key profit driver for retail banks, is
the difference between what lenders earn from loans and pay for
deposits.
"While the environment continues to be challenging for the
banking sector, the outlook for Santander is positive," Santander
Executive Chairman Ana Botín said in a statement. "The economies of
all our core markets are expected to grow this year."
Santander's capital ratio was 10.66% in March, compared with
10.55% in December, under international regulations known as "fully
loaded" Basel III criteria. Santander has among the lowest ratios
of major European banks and investors are closely watching how it
builds capital.
In Brazil, where the bank generates around one-fourth of its
earnings, net profit rose sharply to EUR634 million in the first
quarter compared with EUR359 million a year ago on rising lending
income and fees. Taxes and loan-loss provisions, on the other hand,
increased from a year ago when calculated in euros.
In the U.K., where Santander generates around one-fifth of its
profit, a year-over-year decline in lending income and fees
triggered an 8.2% drop in net profit to EUR416 million when
calculated in euros. Britain's impending exit from the European
Union has pushed sterling down against the euro.
Santander's Spanish banking unit booked a 17.9% increase in
first-quarter net profit from a year earlier, buoyed by higher fees
and lower loan-loss provisions.
Write to Jeannette Neumann at jeannette.neumann@wsj.com
(END) Dow Jones Newswires
April 26, 2017 02:21 ET (06:21 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
Banco Santander (NYSE:STD)
Historical Stock Chart
From Aug 2024 to Sep 2024
Banco Santander (NYSE:STD)
Historical Stock Chart
From Sep 2023 to Sep 2024