Banco Santander’s net profit rose more than expected in the first quarter, as higher income offset the increase in bad loans provisions.
The Spanish bank, one of the largest in the eurozone, said it had reported a net profit of 2.54 billion euros, up 58% from the same period last year, while maintaining estimates for the year as a whole.
Analysts expected the bank to show a net profit of 2.53 billion euros. In the first quarter, profits were hit by the emergency restructuring charge of € 530 million.
Total revenues increased to 12.31 billion Euros from 11.39 billion Euros. Net interest income increased 11% to 8.86 billion Euros and net commission income increased 10% to 2.81 billion Euros.
Provisions for losses on bad loans increased by 5.5% to 2.10 billion euros.
Banco Santander expects underlying returns on equity of more than 13% in 2022.
The Tier 1 capital adequacy ratio stood at 12.12% in March, unchanged from December 2021.
Source: Capital
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