Santander 3Q Net Profit Fell, Hit by U.K. Charge

   By Pietro Lombardi and Carlo Martuscelli

Banco Santander SA (SAN.MC) said Wednesday that third-quarter net profit fell sharply as it reported a 1.49 billion-euro ($1.65 billion) charge related to its U.K. business, which has been hit by Brexit and regulatory changes.

Net profit for the period fell 75% to EUR501 million, the Spanish bank said. Total income rose 6% to EUR12.47 billion.

The lender had said previously that the charge was mostly due to a challenging regulatory environment, such as the negative impact of "ringfencing" rules, under which U.K. lenders must separate retail banking from riskier investment-banking operations. Another EUR103 million charge was booked on missold payment protection insurance.

The bank's core Tier 1 ratio--a key measure of balance-sheet strength--was 11.30% in September, unchanged from the end of June.

Write to Pietro Lombardi at pietro.lombardi@dowjones.com and Carlo Martuscelli at carlo.martuscelli@dowjones.com

(END) Dow Jones Newswires

October 30, 2019 02:24 ET (06:24 GMT)

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