Santander 2Q Profit Beat Expectations Amid Lower Provisions
July 28 2021 - 1:47AM
Dow Jones News
By Xavier Fontdegloria
Banco Santander SA said Wednesday that it swung to a profit in
the second quarter of the year as revenue grew and provisions fell,
and that it is on track to outperform its profitability target for
2021.
The Spanish lender reported a net profit of 2.07 billion euros
($2.45 billion) from April to June, a reversal from a year earlier,
when it posted a EUR11.13 billion net loss due to one-off
impairments related to the Covid-19 pandemic. Analysts expected
profit of EUR1.77 billion, according to a consensus provided by
FactSet.
Provisions for credit losses fell 44% to EUR1.76 billion in the
second quarter, the bank said.
Revenue rose to EUR11.31 billion from EUR10.46 billion a year
earlier, beating estimates from analysts of EUR11.04 billion. Net
interest income--the difference between what banks earn on loans
and what they pay clients for deposits--increased to EUR8.24
billion from EUR7.72 billion in 2020's second quarter.
The bank is on track to outperform its profitability target for
the year, Banco Santander Executive Chairman Ana Botin said. The
lender had targeted an underlying return on tangible equity, a key
measure of profitability, of 9% to 10% for fiscal year 2021.
Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com
(END) Dow Jones Newswires
July 28, 2021 01:38 ET (05:38 GMT)
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