Santander Boosts Profit

MADRID—Banco Santander SA on Thursday said third-quarter net profit rose to €1.68 billion ($1.86 billion) from €1.6 billion reported a year earlier.

Analysts had forecast net profit of €1.7 billion according to a poll by data provider FactSet.

The bank, the eurozone's largest by market value, said net interest income was €7.98 billion compared with €7.5 billion in the third quarter of 2014.

Net interest income, a key driver of revenue for retail banks such as Santander, is the difference between what lenders pay clients for deposits and charge for loans.

Analysts polled by FactSet forecast net interest income of €7.9 billion.

Spanish banks have faced sluggish demand from borrowers and falling yields on the loans they are issuing.

Santander's net interest income also came under pressure from costs related to a new higher interest checking account.

A decline in Brazil's currency against the euro during the past year also hampered Santander's third-quarter earnings. The bank's unit in Brazil contributes around 20% to the lender's profit, second only to its U.K. unit.

Write to Jeannette Neumann at [e-mail]

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October 29, 2015 02:55 ET (06:55 GMT)

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