Santander Posts Higher Third-Quarter Profit -- Update

By Jeannette Neumann 

MADRID-- Banco Santander SA on Thursday reported a 5% rise in third-quarter profit on stronger lending income and slightly lower loan-loss provisions.

The bank said net profit for the quarter came in at EUR1.68 billion, roughly in line with analysts' expectations of EUR1.7 billion, according to a poll by data provider FactSet.

Santander, the eurozone's largest bank by market value, said net interest income was EUR7.98 billion, up from EUR7.5 billion in the same period last year, roughly in line with analysts' forecasts of EUR7.9 billion. Net interest income, a key driver of revenue for retail banks, is the difference between what lenders pay clients for deposits and charge for loans.

Net profit in the U.K., Brazil, Spain--the bank's three largest units--was up in the first nine months of the year compared with the year-ago period.

Santander reported a "fully loaded" capital ratio of 9.85%, a sliver higher than in the second quarter. Investors and analysts are closely watching the pace at which Santander is able to generate capital, given that the lender is below the ratio of European banking peers.

Write to Jeannette Neumann at [e-mail]

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October 29, 2015 02:54 ET (06:54 GMT)

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