Banco Santander reported a 24% jump net profits to €2.17bn ($2.5bn). Its profits were benefitted by a 12% decrease in loan loss provisions to €2.2bn ($2.6bn) and strong UK and US performance. The Spanish lender’s revenues rose 8% YoY to €11.9bn ($13.8bn). Santander’s net interest income rose 8.8% YoY to €8.46bn ($9.8bn). Santander’s UK mortgage lending saw a sharp jump with underlying profits from the region soaring 3x and its US profits jumped 2x thanks to the economic recovery. The bank said that its balance sheet remains robust with its non-performing loan ratio falling 4bp QoQ to 3.18% and its coverage ratio standing at 74%. Santander said it plans to release up to €1bn ($1.16bn) in provisions in Q4. “Our performance in the US and the UK were particularly strong, underscoring the effectiveness of our strategy in these important markets,” CEO Ana Botin said. Its CET1 ratio stood at 11.85%, up 15bp over the prior quarter.
Santander’s dollar bonds were flat with USD 4.75% Perp at 101.19, yielding 4.48%.
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