Santander trading “steady”
THE euro zone’s largest bank, Santander reported first-half profits in line with forecasts with thriving business in Latin America setting off sluggish income in home market Spain.
Santander, which emerged as one of the best capitalized banks in Europe following stress tests, said first half net profit fell 1.6 per cent to 4.445bn euros (£3.7bn).
Net interest income, what a bank earns on loans minus what it pays on deposits, rose 15 per cent to 14.499bn euros also in line with expectations, driven by record profits at its Brazilian business – an engine of growth for the bank.
A Reuters poll of 10 analysts forecast net interest income of 14.4bn euros.
Santander’s Brazilian bank, which has a market value greater than Germany’s Deutsche Bank, saw profit grow 35 per cent during the period to 1.294 billion euros and lending grow 28 per cent.
Latin America accounts for around 40 per cent of the bank’s group profits.
It raised 7bn euros last year with the flotation of its Brazilian business – the world’s largest initial public offering in 2009.