Santander Boosts Profit
October 29 2015 - 3:10AM
Dow Jones News
MADRID—Banco Santander SA on Thursday said third-quarter net
profit rose to €1.68 billion ($1.86 billion) from €1.6 billion
reported a year earlier.
Analysts had forecast net profit of €1.7 billion according to a
poll by data provider FactSet.
The bank, the eurozone's largest by market value, said net
interest income was €7.98 billion compared with €7.5 billion in the
third quarter of 2014.
Net interest income, a key driver of revenue for retail banks
such as Santander, is the difference between what lenders pay
clients for deposits and charge for loans.
Analysts polled by FactSet forecast net interest income of €7.9
billion.
Spanish banks have faced sluggish demand from borrowers and
falling yields on the loans they are issuing.
Santander's net interest income also came under pressure from
costs related to a new higher interest checking account.
A decline in Brazil's currency against the euro during the past
year also hampered Santander's third-quarter earnings. The bank's
unit in Brazil contributes around 20% to the lender's profit,
second only to its U.K. unit.
Write to Jeannette Neumann at jeannette.neumann@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 29, 2015 02:55 ET (06:55 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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