By Pietro Lombardi

 

Banco Santander SA released its first-quarter results on Wednesday. Here is what you need to know.

 

NET PROFIT: The Spanish bank, among Europe's largest, posted quarterly net profit of 1.61 billion euros ($1.95 billion) from EUR331 million a year earlier, when results were hit by provisions to cover potential loan losses and charges related to the coronavirus pandemic. The bank beat analysts' expectations of a EUR1.17 billion profit, according to a consensus estimate provided by FactSet.

 

REVENUE: Revenue fell to EUR11.39 billion from EUR11.81 billion. Analysts had expected revenue of EUR11.04 billion, according to a FactSet consensus.

 

WHAT WE WATCHED:

 

-PROVISIONS AND RESTRUCTURING CHARGE: Provisions for credit losses declined 49% to EUR1.99 billion in the quarter. The bank also posted a restructuring charge of EUR530 million for costs expected in the whole year.

 

-REGIONAL RESULTS: The group's three main regions--Europe, North America and South America--posted sharply higher underlying profits, in particular the first two regions. They all accounted for a bit less than a third of the bank's underlying profits. "Geographically, UK/US were the main positive surprises, with Europe boosted by trading income in Portugal and LatAm moderately ahead due to Brazil," UBS said.

 

-OUTLOOK: Santander confirmed its guidance. "We are confident we will achieve our 2021 goals of improving our efficiency ratio, reducing cost of credit and increasing our profitability," Executive Chairman Ana Botin said.

 

Write to Pietro Lombardi at pietro.lombardi@wsj.com; @pietrolombard10

 

(END) Dow Jones Newswires

April 28, 2021 06:27 ET (10:27 GMT)

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