Santander's Q3 underlying net profit rises despite drop in Brazil
SAN•Santander's underlying third-quarter net profit rose 19% year over year to €3.85 billion, above analysts' average forecast of €3.75 billion. After €416 million in impairment and restructuring charges, reported net profit fell 2% to €3.43 billion.
1. Underlying profit rises
Santander reported underlying third-quarter net profit of €3.85 billion, up 19% year over year and above analysts' average forecast of €3.75 billion. Strong performance in Spain and higher group revenues supported the result.
2. Markets diverge
After €416 million in impairment and restructuring charges, mainly linked to the acquisition of U.S. lender Webster, reported net profit attributable to shareholders fell 2% to €3.43 billion, still above analysts' forecast of €3.23 billion. Quarterly net profit rose 48% in the United States and 40% in Britain, but fell 15% in Brazil due to higher provisions.
3. Expansion plans
Santander said its recent acquisitions of TSB and Webster are expected to help lift profits by more than 40% over the next three years to above €20 billion. Executive Chair Ana Botin said the bank's global businesses and diversification across Europe and the Americas are a source of strength.
