Santander 3Q Profit Rose on Lower Provisions, Higher Revenue
October 27 2021 - 1:47AM
Dow Jones News
By Xavier Fontdegloria
Banco Santander SA on Wednesday said it is set to outperform its
profitability guidance after reporting higher earnings in the third
quarter on increased revenues and lower provisions.
The Spanish lender reported a net profit of 2.17 billion euros
($2.52 billion) from July to September, compared with a EUR1.75
billion profit in the same period a year earlier. The figure is
above analysts' expectations of EUR2.03 billion, according to a
consensus provided by FactSet.
Revenue rose to EUR11.93 billion from EUR11.09 billion a year
earlier, above estimates from analysts of EUR11.60 billion. Net
interest income--the difference between what banks earn on loans
and what they pay clients for deposits--climbed to EUR8.46 billion
from EUR7.77 billion a year ago.
Net loan-loss provisions decreased 13% to EUR2.22 billion in the
third quarter, the bank said.
Banco Santander said it is well on track to significantly
outperform its profitability target for 2021, which is based on an
underlying return on tangible equity--a key measure of
profitability--of 9% to 10% for 2021. In the third quarter, the
underlying RoTE stood at 12.56%.
Fully-loaded core tier 1 ratio was at 11.85% at the end of
September, within the bank's 11% to 12% target.
Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com
(END) Dow Jones Newswires
October 27, 2021 01:32 ET (05:32 GMT)
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