Santander 1Q Net Profit Rises 10% -- Earnings Review

   By Pietro Lombardi 
 

Banco Santander SA (SAN.MC) reported first-quarter earnings Tuesday. Santander, the first major Spanish bank to report its first-quarter 2018 results, narrowly beat analysts expectations. Here's what you need to know:

PROFIT: Santander's first-quarter net profit rose 10% to 2.05 billion euros ($2.51 billion), just ahead of the roughly EUR2.03 billion analysts expected, according to a consensus forecast provided by FactSet.

GROSS INCOME: Santander's gross income of EUR12.15 billion is in line with analysts' forecast of about EUR12.19 billion, according to FactSet.

WHAT WE WATCHED:

REVENUE STREAMS: Net Interest income at EUR8.45 billion, rose 0.6% compared with the same period last year. Net fee income grew 3.9% to EUR2.96 billion. "Both net interest income and fees are in line with consensus," Barclays said.

LATIN AMERICA: Santander's performance in Brazil, which makes up more than a quarter of the bank's profits, is among the main positives of the first-quarter results, UBS said. The bank reported a 7% increase in net profit in the country, which stood at EUR677 million. UBS noted that core revenues increased 17% year-on-year, supported by stronger loan growth and fee momentum. Net profit in Mexico also rose 7% to EUR175 million.

CAPITAL RATIO: Santander's fully loaded CET1 ratio, a key measure of capital strength, rose to 11% from 10.84% in December, a strengthening that Barclays saw as "encouraging."

Write to Pietro Lombardi at [e-mail]

(END) Dow Jones Newswires

April 24, 2018 09:58 ET (13:58 GMT)

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