Banco Santander first quarter profit jumps on Spain's recovery and weak euro
Spanish banking giants Banco Santander said its first-quarter profit rose over 30%, on the back of Spain’s economic recovery and the weakening euro.
Banco Santander S.A.
385.50p
16:40 19/04/24
Banks
3,895.51
17:09 19/04/24
In the three months to 31 March, the group’s profit jumped 32% year-on-year to €1.72bn, in line with analysts’ expectations.
In a statement released on Tuesday, Santander said new loan to businesses in Spain rose 24%, while new loans to individuals increased 36% and the bank’s loan portfolio climbed 14% to €813.3bn.
The lender, one of Europe’s biggest banks, wrote down billions of euros in mortgages in 2013, due to widespread weakness in the
Spanish market. However, the country’s improving economic outlook has seen Santander’s bad loan provisions declining last over the last 12 months.
Provisions for delinquent and defaulted loans dropped 4.9% to €2.56bn in the first quarter.
“Santander’s strong increase in lending reflects our commitment to helping our customers grow,” Ana Botín, the bank’s executive chairwoman, said.
“When we raised capital in January, we said our goal was to target organic growth in our core markets forecasted to achieve strong economic recovery.”
The bank added that its operating expenses rose 10.9% to €5.38bn, while its earnings in Spain jumped 42.1% to €357m.
The lender’s profit in the UK rose 27% to €477m, while its Latin America business saw profit increase 28.5% to €914m.
As of 10:54 on Tuesday, Santander shares were down 0.15% to 489.25p in London and were up 0.96% to €6.84 in Madrid.