Santander: asset sale and restructuring drag profit
(CercleFinance.com) - Santander, one of the largest banks in the euro zone, reported a 10% drop in first-quarter net profit, dragged down by a net charge relating to asset sales and restructuring.
Net profit came in at 1.84 billion euros, hit by a 180 million euro loss from the sale of a portfolio of residential properties in Spain and a 78 million euro charge relating to restructuring costs in the UK and Poland, the bank said.
However, underlying business trends were "solid" in the past quarter, with net interest income - what a bank earns on loans, less what it pays for deposits - up 3% at 8.7 billion euros, as expenses fell by 2%.
Santander also said that the number of customers using Santander as their primary bank ("loyal customers") increased by 1.8 million year-on-year to 20.2 million.
In its statement, Santander said that it is confident that it will achieve its medium-term targets, including a return on equity (RoTE) of 13%-15%.
The Madrid-listed Santander share was down 1.4% after the report.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
Net profit came in at 1.84 billion euros, hit by a 180 million euro loss from the sale of a portfolio of residential properties in Spain and a 78 million euro charge relating to restructuring costs in the UK and Poland, the bank said.
However, underlying business trends were "solid" in the past quarter, with net interest income - what a bank earns on loans, less what it pays for deposits - up 3% at 8.7 billion euros, as expenses fell by 2%.
Santander also said that the number of customers using Santander as their primary bank ("loyal customers") increased by 1.8 million year-on-year to 20.2 million.
In its statement, Santander said that it is confident that it will achieve its medium-term targets, including a return on equity (RoTE) of 13%-15%.
The Madrid-listed Santander share was down 1.4% after the report.
Copyright (c) 2019 CercleFinance.com. All rights reserved.