{"id":22228,"date":"2023-04-25T08:49:57","date_gmt":"2023-04-25T08:49:57","guid":{"rendered":"https:\/\/lynettelockhart.com\/client\/spains-santander-q1-net\/"},"modified":"2023-04-25T08:53:35","modified_gmt":"2023-04-25T08:53:35","slug":"santander-profit-beat-overshadowed","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/santander-profit-beat-overshadowed\/","title":{"rendered":"Santander profit beat overshadowed by weak quarter in Brazil"},"content":{"rendered":"

By Jes\u00fas Aguado<\/p>\n

MADRID (Reuters) – Spain’s Santander on Tuesday beat forecasts with a 1% rise in first-quarter net profit as a strong performance in Europe offset weaker trade in Brazil and the United States.<\/p>\n

Its net profit rose to 2.57 billion euros helped by higher lending income and despite a hit of 224 million euros from a new tax in Spain. <\/p>\n

That topped the 2.45 billion euros expected by analysts polled by Reuters, while excluding the tax, profit rose 10%.<\/p>\n

Provisions rose 37% to 2.87 billion euros, in line with expectations.<\/p>\n

Santander has relied on Latin America in the past to cope with tough conditions but banks across Europe are now benefiting from higher interest rates. <\/p>\n

Santander’s underlying net interest income rose 15% to 10.19 billion euros.<\/p>\n

However in Brazil, its main market, net profit fell 25% due to a rise in costs driven by inflation and a fall in net interest income.<\/p>\n

Spanish brokerage Renta 4 said the bank’s overall figures were “good” but highlighted a poor performance in Brazil where operating expenses (excluding exchange rate) rose by 11% and provisions were up 16%.<\/p>\n

Underlying net profit in the United States fell 48.5% on higher funding costs in the auto business while provisions more than doubled.<\/p>\n

In the UK, net profit rose 5%, while in Spain it rose 28% on higher lending income.<\/p>\n

Santander shares were down 4% as of 0737 GMT.<\/p>\n

Higher revenue helped Santander’s return on tangible equity ratio (ROTE), a measure of profitability, to rise to 14.4% from 13.37% at the end of 2022. It reiterated its ROTE target of more than 15% by the end of 2023.<\/p>\n

Overall deposits at Santander rose 6% in constant euros year on year despite the banking turmoil triggered by last month’s failure of Silicon Valley Bank. <\/p>\n

Some seasonal drawdowns in its investment bank in January led to a 2% fall in deposits versus end-2022 but the bank said deposit volumes started increasing again from February “reflecting positive business trends”.<\/p>\n

Liquidity coverage ratios remained stable at 152% in March compared to December. <\/p>\n

Santander’s Tier-1 fully loaded capital ratio, the strictest measure of solvency, rose to 12.2% from 12.04% in December.<\/p>\n

($1 = 0.9048 euros)<\/p>\n

\n

(Reporting by Jes\u00fas Aguado; additional reporting by Emma Pinedo; editing by Inti Landauro and Jason Neely)<\/p>\n

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By Jes\u00fas Aguado MADRID (Reuters) – Spain’s Santander on Tuesday beat forecasts with a 1% rise in first-quarter net profit as a strong performance in Europe offset weaker trade in Brazil and the United States. Its net profit rose to 2.57 billion euros helped by higher lending income and despite a hit of 224 million […]<\/p>\n","protected":false},"author":8,"featured_media":22229,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1213],"tags":[1223],"class_list":["post-22228","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-business","tag-updated"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ3O03T-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/22228","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=22228"}],"version-history":[{"count":3,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/22228\/revisions"}],"predecessor-version":[{"id":22409,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/22228\/revisions\/22409"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/22229"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=22228"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=22228"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=22228"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}