Santander Q1 net profit up on Europe, offsetting weaker Brazil

Spain’s Santander (SAN.MC) on Tuesday reported a 1% rise in first-quarter net profit on higher lending income, especially in Europe, which offset a weaker performance in Brazil.

The euro zone’s second-biggest lender by market value booked a net profit of 2.57 billion euros ($2.84 billion) despite a hit of 224 million euros from a new tax on banks in Spain.

That topped the 2.45 billion euros expected by analysts polled by Reuters while excluding the new tax, profit rose 10%.

Santander in the past has relied on Latin America to cope with tough conditions but banks across Europe are benefiting from higher interest rates.

Net profit in Europe rose 16.8%, while in Brazil, its main market, it fell to 25.2% due to a rise in costs driven by inflation and a fall in net interest income.

Higher revenue also helped Santander’s return on tangible equity ratio (ROTE), a measure of profitability, which rose to 14.4% from 13.37% at the end of 2022.

This report’s information was first seen on REUTERS; to read more, click this link.