Santander, Spain’s largest lender, delivered a near-300% increase in net profit in the third quarter, driven by an overall improvement in business conditions, although it increased its cash buffers to deal with bad loans as the coronavirus pandemic continues to impact households and businesses.
The bank reported net profit of €1.750 billion ($2.07 billion) in the third quarter of the year on Tuesday, up from €501 million ($597 million) in the same quarter last year and comfortably above expectations for a profit of €1.004 billion ($1.187 billion), based on a Bloomberg survey of analysts.
“These results speak to the strength and breadth of our customer relationships and the resilience of our diversified business and markets in which we operate,” Santander chief executive Ana Botin said in a statement.
“This diversification has been a key driver of our recovery, with South America performing well and the UK recovering strongly in the third quarter.”
Lending grew strongly across all the company’s key markets, up 5% year-on-year, and most notably in the UK, where Santander said new mortgage lending in particular had helped drive overall consumer loans activity above pre-pandemic levels.
Lending rose 17% in South America, where Santander has a huge footprint.
In the second quarter of the year, Santander reported a record €11.1 billion loss, as the coronavirus pandemic devastated its consumer business, both at home and abroad. At the time, the bank wrote down nearly €13 billion relating to past acquisitions by its UK business.
Share on your Social Networks