SAN Banco Santander SA

By Pietro Lombardi

Banco Santander SA reported Tuesday a sharp decline in net profit for the first quarter of 2020 as the bank followed U.S. and European peers in preparing for the impact of the coronavirus pandemic. Here is what you need to know.

NET PROFIT: Net profit for the quarter fell 82% on year to 331 million euros ($358.6 million).

REVENUE: Revenue fell 2% to EUR11.81 billion.

WHAT WE WATCHED:

--PROVISIONS: The Spanish bank, one of Europe's largest, set aside more money to cover potential loan losses and booked exceptional provisions related to the expected economic impact of the pandemic. Santander's loan-loss provisions stood at EUR2.31 billion in the first quarter, a 6% increase from the same period last year. It also booked EUR1.6 billion in provisions related to the expected economic impact of the pandemic.

--REVENUE STREAMS: Both net interest income and fees declined. The former fell to EUR8.49 billion from EUR8.68 billion, the latter dropped to EUR2.85 billion from EUR2.93 billion.

--CAPITAL: The bank's core tier 1 ratio--a key measure of balance-sheet strength--was 11.58% in March from 11.65% at the end of December.

Write to Pietro Lombardi at pietro.lombardi@dowjones.com

(END) Dow Jones Newswires

April 28, 2020 06:19 ET (10:19 GMT)

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