Santander 3Q Earnings in Line, While UK Division Weighs on Results -- Earnings Review
October 30 2019 - 10:23AM
Dow Jones News
By Carlo Martuscelli
Banco Santander SA (SAN.MC) reported its results for the third
quarter on Wednesday. Here's what we looked at:
TOTAL INCOME: The Spanish bank said that total income in the
third quarter came to 12.47 billion euros ($13.84 billion), edging
ahead of the EUR12.35 billion consensus analyst forecast provided
by FactSet.
NET PROFIT: Net profit also came in broadly in line with market
views, totaling EUR501 million versus expectations of EUR447
million, but sharply down from the EUR1.99 billion reported last
year.
WHAT WE WATCHED:
-U.K. division: The company confirmed the previously announced
U.K. goodwill impairment amounting to EUR1.49 billion. It also
reported a EUR103 million charge related to missold
payment-protection insurance.
Irish brokerage Goodbody says that given the company's stated
goal of re-weighting capital toward more profitable regions, the
question arises whether there are other parts of Santander's U.K.'s
operation that are viewed as noncore in the longer term, given an
increasingly challenging revenue backdrop.
-COMMON EQUITY TIER 1 RATIO: Citi analysts correctly predicted
that Santander's CET1 ratio would stay unchanged at 11.3%, weighed
down by regulatory demands dating back to December of last year.
The lender said that discounting these, the group's CET1 ratio
would be 11.83%.
Write to Carlo Martuscelli at carlo.martuscelli@dowjones.com;
@carlomartu
(END) Dow Jones Newswires
October 30, 2019 10:08 ET (14:08 GMT)
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