MADRID (Reuters) -Santander on Tuesday said its first-quarter net profit rose 11% year-on-year as its solid retail business in Europe benefited from higher interest rates and a diversified business strategy that allowed a steady revenues growth.
The euro zone second-biggest lender in terms of market value booked a net profit of 2.85 billion euros ($3.05 billion), in line with the 2.87 billion euros expected by analysts in a Reuters poll.
Santander has relied on Latin America in the past to cope with tough conditions but banks across Europe have benefited from a steep rise in rates since July 2022.
“It has been a very strong start to the year, with revenues growing 10% (…). This has resulted in a return on tangible equity of 16.2% (after annualizing the impact of the temporary banking levy in Spain),” Santander Executive Chair Ana Botin said in a statement.
The retail business is the bank’s main contributor to earnings of all of its five global units, which the bank started reporting as primary segments under a new business model as of the first quarter. Regions are now accounted as secondary segments.
($1 = 0.9341 euros)
(Reporting by Jesús Aguado, editing by Inti Landauro)
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