Santander 2Q Profit Falls 3% on Banco Popular Integration Costs
July 25 2018 - 1:49AM
Dow Jones News
By Adam Clark
Banco Santander S.A. (SAN) said Wednesday its second-quarter
profit fell, dragged by the integration costs of its 2017
acquisition of rival Spanish lender Banco Popular.
The Spanish bank, one of Europe's largest lenders, said its
second-quarter net profit came to 1.70 billion euros ($1.99
billion), down 3% from the year-earlier quarter.
Santander said the fall was due to EUR300 million in Banco
Popular integration costs. On an underlying basis, profit rose 14%
to EUR2.00 billion, Santander said.
Net-interest income--the difference between what the lender
earns from loans and pays out on deposits--came to EUR8.48 billion,
as gross income remained flat at EUR12.01 billion.
Santander's Common Equity Tier 1 ratio, a key measure of
balance-sheet strength, stood at 10.80% at the end of the quarter.
The bank said it remains on-track to meet its capital target and
grow earnings per share by double digits in 2018.
"During the second quarter we have delivered strong growth in
underlying revenue and improving credit quality, despite strong
currency headwinds," Executive Chairman Ana Botin said.
"During the quarter we have seen particularly strong growth in
Brazil, Spain, Mexico and the US and this has more than offset a
more challenging environment in other markets," she said.
Write to Adam Clark at adam.clark@dowjones.com;
@AdamDowJones
(END) Dow Jones Newswires
July 25, 2018 01:34 ET (05:34 GMT)
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