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Santander underlying profit rises 16% in nine months

Santander increased nine-month underlying profit to 11.176 billion euros as its customer base expanded. The Spanish bank’s reported earnings also included the gain on selling its Polish business and charges linked to acquisitions. After completing its Webster purchase, it retained its year-end capital target while reporting a lower quarterly attributable profit.

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Underlying earnings rise over nine months

Banco Santander, the Spanish banking group, announced nine-month underlying profit of 11.176 billion euros on October 28. That measure excludes non-recurring items and increased 16 per cent from the corresponding period a year earlier.[1], [2]

Attributable profit reached 12.405 billion euros, an increase of 20 per cent. It included approximately 1.9 billion euros gained from selling the bank’s Polish business in January, partly offset by 666 million euros in charges. Those charges included costs of integrating the acquired banks TSB and Webster.[1]

Quarterly profit absorbs acquisition charges

Third-quarter underlying profit totalled 3.848 billion euros. Attributable profit fell 2 per cent to 3.432 billion euros after non-recurring charges of 416 million euros. The customer base expanded by 17 million to 189 million; TSB and Webster contributed 8 million customers. Costs excluding the acquisitions declined 1 per cent at actual exchange rates.[1]

Capital target retained after Webster purchase

The Webster acquisition completed on August 20. Santander ended September with a common equity tier one capital ratio of 12.7 per cent, a measure of its core loss-absorbing capital. The bank retained its year-end target of 12.8–13 per cent. Its non-performing loan ratio stood at 2.90 per cent, with provisions covering 64 per cent of those loans.[1]

References

  1. News sourceBanco SantanderSantander underlying profit grows as reported quarterly profit falls↩1↩2↩3↩4
  2. News sourceEuropa PressSantander increases nine-month underlying profit↩
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