Wednesday, October 26, 2016

Spanish bank Santander has reduced profits in 22,5% News Journal

The Spanish bank Santander had profits of 4606 million euros in the first nine months of 2016, a reduction of 22.5% compared to the same period of 2015

“our results in the first nine months of 2016 are good, with over a million customers linked that trust in us. In addition, we are among the leading banks in profitability”, he pointed out, this Wednesday, the president of the group Santander, Ana Botin.

According to a report sent this morning to the National Commission of the Market of Values (CNMV), the Spanish, the bank underlines that, if the excluded “non-recurring results and the effect of exchange rates”, the benefit of the ordinary grows 8%, up to 4.975 million.

In the third quarter of 2016, the bank obtained a profit of 1,695 million euros, an increase of 1% compared to the same period last year and excluding the impact of the depreciation of the currencies against the euro, the benefit assigned has increased by 7%, according to Santander.

revenues in “commissions” grew 8% compared to the first nine months of the previous year, up 7.543 million euros.

according To the same report, the operating costs increased 4.1%, up to 15,634 million euros, mainly explained by the impact of inflation in some markets.

The profit declined because of “extraordinary operations” in the second quarter, among them are the restructuring costs (-475 million euros), the capital gains from the sale of VISA Europe (+227), and a change in the timing of entry into Resolution Fund European (-120).

In the second quarter, the results had an entry extraordinary of 835 million euros, due to the reversal of provisions in Brazil.

The capital CET1 (fully loaded) has increased, according to Santander, 11 basis points in the third quarter and to 0.42 points in the first nine months, reaching approximately 10.47%, with the objective of reaching 11 % in 2018.

The bank highlights that 56 % of the results of the group come from Europe (United Kingdom, 19%; Spain 14%; Santander Consumer Finance, 13%), and 44% in the Americas (Brazil, 20%; Mexico, 7%).

“we Hope to finish 2016 with the benefit the grow in respect of 2015, which will allow us to increase the dividend per share and the benefit for action”, concluded Ana Botin.

with regard to its operation in Portugal, the gross margin was 917 million euros (+31,5 %); the costs of exploitation of 445 million (+20,6%); the appropriations for bad debts of 44 million (-33,8 %); the benefit assigned before the Resolution Fund European 302 million (+67%); and the benefit assigned (profit) of 293 million (+62,3%).

The bank stresses that the group recorded in Portugal, an increase in benefits, due to increased revenues, lower costs and strong reduction in appropriations, to which must be added the proceeds of the sale of portfolios and the integration of Banif.


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