Strong growth in Brazil helps Banco Santander beat forecasts
The eurozone’s largest bank by market value reports a net profit of almost €1.9bn in first quarter, rewarding its pivot towards Latin America in search of higher returns
Madrid — Strong growth for Banco Santander in its largest market Brazil drove a 14% jump in group profit in the first quarter, rewarding its pivot towards Latin America in search of higher returns. On Wednesday, the eurozone’s largest bank by market value reported a net profit of almost €1.9bn ($2.07bn) in the first three months of the year, well ahead of analysts’ forecasts. In Brazil, whose share of the bank’s profits has jumped to 26% from 21% since the end of 2016, net profit rose for the fifth quarter in a row, up by almost 80% on underlying growth and the appreciation of the real. Net interest income (NII), a measure of earnings on loans minus deposit costs and a key part of the bank’s returns, improved for the fourth consecutive quarter in Brazil as its economy recovers from its worst ever recession. Santander CEO Jose Antonio Alvarez said a growing loan book and falling non-performing loans were among the key influences on its performance in Brazil. Its Latin American busine...
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