Santander's Lower Provisions Help Propel 1Q Profit Above Expectations
April 28 2021 - 1:30AM
Dow Jones News
By Pietro Lombardi
Banco Santander SA's provisions fell sharply in the first
quarter, helping net profit rise more than expected despite a
restructuring charge of more than half-a-billion euros.
The Spanish bank on Wednesday posted quarterly net profit of
1.61 billion euros ($1.95 billion). That compares with EUR331
million a year earlier, when results were hit by provisions to
cover potential loan losses and charges related to the coronavirus
pandemic. Analysts had expected profit of EUR1.17 billion,
according to a consensus estimate provided by FactSet.
Provisions slid 49% to EUR1.99 billion in the quarter. The bank
posted a restructuring charge of EUR530 million for costs expected
in the whole year.
Revenue fell to EUR11.39 billion from EUR11.81 billion.
"We saw good performance across all our regions, with
particularly strong growth in the U.S., the U.K. and Santander
Corporate and Investment Banking," Executive Chairman Ana Botin
said. "We are confident we will achieve our 2021 goals of improving
our efficiency ratio, reducing cost of credit and increasing our
profitability."
Write to Pietro Lombardi at pietro.lombardi@wsj.com;
@pietrolombard10
(END) Dow Jones Newswires
April 28, 2021 01:15 ET (05:15 GMT)
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