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Santander's Q3 profit rises 36% despite drag from UK

31/10/2018 10:23

(Sharecast News) - Santander met estimates for its Q3 results on Wednesday, reporting a rise in profits in most markets, especially in Spain (+ 27%) and the United States (+ 36%), but not in the where UK they fell by 10%. For the three months to September, the lender posted profit after tax of €1,9bn, 36% more than in the year-ago period (€1.4bn).

According to Reuters, analysts had penciled-in net income of €1.92bn. In Brazil, the bank's most profitable market, attributable profit increased by 2% to €1.9bn, as the number of clients jumped by 1.0m versus the corresponding period of 2017. The lender also did especially well in Spain this quarter, with profits ahead by 27% to €1bn, which management attributed to increased customer revenues (+ 19%) and improved efficiency following the acquisition of Popular. Its performance in the United Kingdom on the other hand underwhelmed, with attributable profit down 10% from a year ago to roughly €1.0bn as Santander ploughed ahead with its digital transformation plans and regulatory projects, two of its strategic priorities. CEO Ana Botín said: "Ordinary profit increases in eight of our markets, which represent 85% of our profit, while the quality of credit also improves.

Brazil, Mexico and Spain maintain the positive trends of the last quarters, and the United Kingdom shows an improvement in inter-quarterly data in an environment that continues to be complicated". As of 1227 GMT on Wednesday, shares in Santander were rising 3.21% and near the top of the leader board on the Ibex 35.

Investors should be aware that past performance is not a reliable indicator of future results and that the price of shares and other investments, may fall as well as rise and the amount realised may be less than the original sum invested.


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