Santander's Q1 underlying net profit rises 12.5% thanks to revenues, provisions rise
Q1 Financial Performance Overview
Underlying Net Profit Growth
MADRID, April 29 (Reuters) - Spain's Santander on Wednesday said its underlying net profit rose 12.5% year-on-year in the first quarter supported by higher revenues and fees which offset higher provisions.
Provisions and Impact on Digital Consumer Unit
The lender set aside 207 million euros ($242.27 million) in additional provisions at its digital consumer unit Openbank to compensate motorists for mis-sold motor finance in the UK.
Quarterly Net Profit and Lending Income
The euro zone's biggest lender by market value booked a quarterly underlying record net profit of 3.56 billion euros, slightly below the 3.58 billion euros expected by analysts in a Reuters poll. A rise of 3.6% in lending income also supported earnings.
Executive Commentary
"Our geographic and balance sheet diversification, together with disciplined risk management, remain key strengths amid heightened geopolitical uncertainty, enabling us to deliver resilient and profitable growth," Santander Executive Chair Ana Botin said in a statement.
Reported Net Profit Including Capital Gains
Taking into account capital gains of 1.9 billion euros from the sale of a 49% stake in its Polish unit, the bank's reported net profit rose in the quarter 60% to 5.46 billion euros.
Additional Information
($1 = 0.8669 euros)
($1 = 0.8544 euros)
(Reporting by Jesús Aguado; editing by Aislinn Laing)
