The Spanish bank posted profits of 1.633 billion euros in the first quarter of the year. The activity in Portugal contributed 121 million, due to the “positive impact” of the merger of Banif.
The profits of the Spanish bank Santander fell 4.9% in the first quarter of the year compared to the same period of 2015 to a total of 1.633 billion euros, mainly affected by the effect of exchange rates.
Still, the results were above expectations of the markets, which had expected profits from the bank Spanish stay around 1.5 billion euros in the first quarter.
the group explained that without the effect of exchange rates, profit would have grown by 8%.
” the results of the first quarter 2016 are very conditioned by the evolution of different currencies with working the bank, which were losing value against the euro over the past year, “said the entity chaired by Ana Patricia Botín.
the interest margin, which reflects the results of basic banking – taking and lending money and respective commissions – fell 5.1% in the quarter to 10.021 billion euros. Also this margin would have increased 6% without taking into account exchange rates.
The gross margin fell 6.2% (+ 4.1% at constant exchange rates) for 10,730 million, while the net margin fell 8.1% to 5,570 million (+ 2.8% excluding the effect of foreign exchange).
“the results exceed the provisions of the plan three years and comply with all marked goals. revenues and loans to customers increased by 4% (excluding the effect of exchange rates). the rate of improvement slow, increase the core capital (+22 basis points to 10, 27%), “said the president of the organization in a statement sent to the market regulator.
These results, he added, give” confidence that the group will meet its objectives, including, as announced a increase in the dividend per share in cash 10% and an increase in the total dividend by 5%. “
the entity’s board of directors indicated the intent to distribute a dividend of 0.21 euros conditioned to results 2016, representing an overall increase of 5% per share compared to 2015.
Santander costs fell 4.1% between January and March, although they have increased 5.6% excluding the effect of exchange rate.
the weight of Spain in the profits of the bank continues to blur gradually, as is already the third most important market for the group. Of total profits, 61% are from Europe and 39% in America.
By country, the largest contributor to profits is the UK, with 23%, followed by Brazil (18%) , Spain (15%), Mexico (7%), Portugal and Chile (6% each), United States (4%), Argentina and Poland (3% each).
Profit Santander in Portugal increases 121% after buying Banif
the Santander group announced today 121 million euros profit in Portugal in the first quarter of the year, over 121% compared to 2015, and said the “positive impact on the whole of the merger of Banif activity.”
in a communication to the Spanish market, the bank points out that “attributable profit for the first quarter is 121 million euros, more than double than obtained until March last year (+ 121%), “and points out” the positive impact throughout the whole of the merger of Banif activity “which Santander bought last year for about 150 million euros.
“All the interest margins and commissions grew 30%, while costs have risen 25%,” stressed Santander, adding another reason for the rise in profits.
“in addition, revenues strengthened with the results of originated financial transactions in the sale of portfolios,” he said.
the loan-loss provisions, despite the larger perimeter, “increased only by 2%, with the cost credit to improve to 0.28%. “
Compared to the fourth quarter of last year,” in which the results obtained in public debt sales were very high, profit increases by 1% ” .
gross margin of Santander in Portugal reached EUR 337 million in the first quarter (41.5% more than last year), while net margin was 183 million (59.6% ). Profit attributable to the group was EUR 121 million (121.4%).
On the evolution of the business in Portugal, with the purchase of Banif, Santander indicates that the credit increased by 24% for 30 billion euros.
“the incorporation of Banif balances represented a change in its structure, increasing the weight of the corporate segment to 35% (31% in March 2015). in terms comparable, without the effect of this merger, the balances decrease by 2% (which is a better performance than the market, “says the bank.
on the other hand, resources increased by 22% to 30.6 billion euros, “mainly due to the incorporation of Banif deposits”.
“in like basis, total funds recorded an increase of 4%, consistent with a very focused management in reducing the cost of deposits, “the Santander.
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