5.3 C
Sunday, December 4, 2022
HomeNewsMarketingSantander's profit tops forecast despite provisions, costs By Reuters

Santander’s profit tops forecast despite provisions, costs By Reuters


Related stories


© Reuters. FILE PHOTO: A man uses an ATM machine at a Santander bank branch in Ronda, Spain, October 25, 2022. REUTERS/Jon Nazca

By Jesús Aguado

MADRID (Reuters) – Spain’s Santander (BME:) beat forecasts on Wednesday with an 11% rise in third-quarter net profit as rising banking revenues offset higher provisions in some of its main markets, such as Brazil and the United States.

The euro zone’s second-biggest lender by market value booked a net profit of 2.42 billion euros ($2.41 billion), up from 2.17 billion euros in the same quarter last year. Analysts polled by Reuters had expected a net profit of 2.19 billion euros.

“We expect the macroeconomic environment to remain challenging as markets across Europe and North America adapt to levels of inflation not experienced in decades,” Santander’s Chairman Ana Botin said in a statement.

Net loan-loss provisions rose 24% year-on-year to 2.76 billion euros against an uncertain macroeconomic backdrop, mirroring the picture at lenders in the United States.

JP Morgan, for example, set aside more cash in preparation for a hit from a potential economic slowdown.

Santander’s diversification, especially in Latin America, has helped it cope with tough conditions for lenders in Europe since the financial crisis.

The bank benefited from local currency swings in Latin America, but results in this region were also marked by rising inflation.

Overall, costs rose 8.5% from a year ago in constant currencies at a group level.

Revenues climbed 13% year-on-year to 13.51 billion euros, more than the 13.15 billion euros analysts had forecast.

Net interest income, a measure of earnings made on loans minus deposit costs, rose 18.8% year-on-year to 10.05 billion euros, beating forecasts for 9.78 billion euros on the back of higher interest rates in emerging and developed markets.

($1 = 1.0045 euros)

Source link


- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories



Please enter your comment!
Please enter your name here