Santander 1Q Beat Expectations -- Earnings Review
April 28 2021 - 6:42AM
Dow Jones News
By Pietro Lombardi
Banco Santander SA released its first-quarter results on
Wednesday. Here is what you need to know.
NET PROFIT: The Spanish bank, among Europe's largest, posted
quarterly net profit of 1.61 billion euros ($1.95 billion) from
EUR331 million a year earlier, when results were hit by provisions
to cover potential loan losses and charges related to the
coronavirus pandemic. The bank beat analysts' expectations of a
EUR1.17 billion profit, according to a consensus estimate provided
by FactSet.
REVENUE: Revenue fell to EUR11.39 billion from EUR11.81 billion.
Analysts had expected revenue of EUR11.04 billion, according to a
FactSet consensus.
WHAT WE WATCHED:
-PROVISIONS AND RESTRUCTURING CHARGE: Provisions for credit
losses declined 49% to EUR1.99 billion in the quarter. The bank
also posted a restructuring charge of EUR530 million for costs
expected in the whole year.
-REGIONAL RESULTS: The group's three main regions--Europe, North
America and South America--posted sharply higher underlying
profits, in particular the first two regions. They all accounted
for a bit less than a third of the bank's underlying profits.
"Geographically, UK/US were the main positive surprises, with
Europe boosted by trading income in Portugal and LatAm moderately
ahead due to Brazil," UBS said.
-OUTLOOK: Santander confirmed its guidance. "We are confident we
will achieve our 2021 goals of improving our efficiency ratio,
reducing cost of credit and increasing our profitability,"
Executive Chairman Ana Botin said.
Write to Pietro Lombardi at pietro.lombardi@wsj.com;
@pietrolombard10
(END) Dow Jones Newswires
April 28, 2021 06:27 ET (10:27 GMT)
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