Sunday 18 June 2017

Santander shares slip despite beating first quarter forecasts

Spain's largest lender posted better-than-expected quarterly profits thanks to a strong performance in almost all regions - especially in Brazil, UK and Spain - and a drop in its non-performing loan ratio.

Net profits at Santander jumped 14% during the first three months of the year to reach 1.87bn, edging past the consensus forecast from FACTSET for 1.847bn. Mexico was one weak spot, with results down 3% in comparison to the prior quarter. At 11.3bn top line growth was 5% ahead quarter-on-quarter, with costs just 1.6% higher versus the fourth quarter of 2016 and loan loss provisions stable.

Its net interert income improved 10.2% year-on-year to hit 8.402bn while its non-performing loan ratio dropped from 4.33% one year ago to 3.74%. Together, the above saw it return on tangible equity rise by 100 basis points to 12.1%. driving an 11 basis point improvement in its common equity Tier 1 ratio to 10.66%.

Santander reiterated its commitment to lift its CET1 ratio by roughly 10 basis points per quarter.

Full version: http://www.livecharts.co.uk/share_prices/Santander-shares-slip-despite-beating-first-q-news25853207.html

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