Santander Net Profit Rises as Interest Rates Boost Top Line

By Adria Calatayud

Banco Santander reported a higher net profit for the first quarter, when higher interest rates drove top-line growth and, together with cost control, offset an increase in provisions.

The Spanish bank said Tuesday that it made a quarterly net profit of 2.85 billion euros ($3.06 billion) compared with EUR2.57 billion for the same period last year.

Total income for the quarter rose 8.1% EUR15.045 billion, helped by continued growth in net interest income--the difference between what a bank earns on loans and what it pays clients for deposits. Net interest income jumped 15% to EUR11.98 billion.

Analysts had expected Santander to post a net profit of EUR2.93 billion on revenue of EUR14.97 billion, according to consensus estimates provided by Visible Alpha.

Santander said it is on track to meet its 2024 targets, which call for mid-single-digit revenue growth and a return on tangible equity--a key profitability metric for banks--of 16%.

In the first quarter, the bank's return on tangible equity was 14.9%, it said.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

April 30, 2024 01:36 ET (05:36 GMT)

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