Santander 1Q Net Profit Rises 10% -- Update
April 24 2018 - 4:49AM
Dow Jones News
By Pietro Lombardi
Banco Santander SA (SAN.MC) said Tuesday that first-quarter net
profit rose 10% boosted by the strong results at its Brazilian and
Spanish operations.
The Spanish bank, one of Europe's largest lenders, said net
profit rose 10% to 2.05 billion euros ($2.51 billion), slightly
ahead of analysts' expectations for about EUR2.03 billion,
according to a consensus forecast provided by FactSet.
Net interest income, the difference between what banks earn from
loans and pay for deposits, was EUR8.45 billion, compared with
EUR8.40 billion a year earlier. Net fee income rose 3.9% to EUR2.96
billion.
The results were buoyed by the bank's performance in Brazil and
Spain, with net profit rising 7% to EUR677 million in Brazil, which
accounts for more than a quarter of the bank's profits. In Spain,
Santander posted a 26% increase in net profit to EUR455
million.
Santander's fully loaded CET1 ratio, a key measure of capital
strength, notched up to 11% from 10.84% in December. However,
Jefferies noted the "mixed outlook on capital," with the bank
flagging some regulatory headwinds at Santander Consumer USA
affecting 2Q capital.
Shares in Santander traded 2.3% lower at 0802GMT.
"The outlook for 2018 remains positive, and I am confident our
teams will execute well so we reach our objectives this year, as
well as delivering profitable and responsible growth going
forward," Executive Chairman Ana Botin said, adding that the profit
growth was driven by the bank's solid results in Brazil, Spain and
Mexico, as well as improved performance in the U.S.
The integration of Banco Popular, which Santander bought last
year, is on track, Santander said.
In a separate statement, Santander said that its board and that
of Banco Popular Espanol SAU have agreed to the merger by
absorption of Banco Popular by Banco Santander.
Write to Pietro Lombardi at pietro.lombardi@dowjones.com
(END) Dow Jones Newswires
April 24, 2018 04:34 ET (08:34 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
Banco Santander (NYSE:STD)
Historical Stock Chart
From Mar 2024 to Apr 2024
Banco Santander (NYSE:STD)
Historical Stock Chart
From Apr 2023 to Apr 2024