Banco Santander Net Profit Up 14.3% in 1st Quarter

By Jeannette Neumann

MADRID--Banco Santander SA (SAN.MC) said Wednesday that net profit rose 14.3% in the first quarter from a year earlier, as the bank made progress boosting its capital ratio.

Santander, one of Europe's largest lenders, said net profit was EUR1.87 billion ($2.05 billion) in the quarter, compared with EUR1.63 billion a year ago. That beat analysts' estimates that the company would report a net profit of EUR1.75 billion in the latest period, according to a poll by data provider FactSet.

The Spanish lender said net interest income in the first quarter was EUR8.4 billion, compared with EUR7.62 billion a year earlier. That beat analysts' estimates for net interest income of EUR8.14 billion, according to FactSet.

Net interest income, a key profit driver for retail banks, is the difference between what lenders earn from loans and pay for deposits.

Santander's capital ratio was 10.66% in March, compared with 10.55% in December, under international regulations known as "fully loaded" Basel III criteria. Santander has among the lowest ratios of major European banks and investors are closely watching how it builds capital.

Write to Jeannette Neumann at [e-mail]

(END) Dow Jones Newswires

April 26, 2017 01:40 ET (05:40 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.