Santander notches up billion euro profit
AFP/The Local · 24 Oct 2013, 17:29
Published: 24 Oct 2013 13:47 GMT+02:00
Updated: 24 Oct 2013 17:29 GMT+02:00
- 'The whole world wants to invest in Spain' (18 Oct 13)
- Santander profits soar but bad loans linger (30 Jul 13)
After recent comments that this was a "fantastic" period for the Spanish economy, Santander chairman Emilio Botin Santander was able to offer up yet more upbeat news on Thursday.
His banks's net profit rose to €1.055 billion ($1.46 billion) in the third quarter, nearly nine times the €122 million profit reported a year earlier.
At this time last year, it had to set aside €1.14 billion in provisions against doubtful property-related assets in Spain.
Santander's net banking income fell 15.5 percent to €6.285 billion over the same period.
"After several years of high levels of write-offs and reinforcement of capital, Banco Santander is prepared for a new period of increased profitability," Santander chairman Emilio Botin said in a statement.
Over the first nine months of 2013, Santander posted a net profit increase of 77 percent from the same period last year to €19.66 billion . Net banking income dropped 13.9 percent to €19.66 billion.
Faced with fragile economies in Spain and the rest of Europe, Santander has focused on emerging markets, especially Latin America, from which it now sources 55 percent of its profits.
Santander said it had boosted the ratio of rock solid core capital on its books to 11.56 of the total capital, up from 10.38 percent a year earlier.
But the ratio of bad loans at risk of not being repaid -- most of them related to the collapsed property market — rose to 5.43 percent of all credit from 4.34 percent a year earlier.