SAN Banco Santander SA

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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