Santander: profit falls on loan-loss provision
(CercleFinance.com) - Spanish lender Santander said on Wednesday that its first-half net profit has been almost halved, mainly due to an increase in loan-loss provisions attributable to the Covid-19 pandemic.
First-half net profit slipped to 1.9 billion euros, from 3.8 billion euros a year earlier.
However, net interest income remained stable year-on-year, at 16.2 billion euros, driven by revenue growth in Latin America, the corporate and investment banking unit, wealth management and insurance.
This performance, combined with strict cost control, resulted in net operating profit rising 2% to 11.9 billion euros, Santander said.
The group pointed out that it is ahead of schedule in its cost saving plan, with its European unit achieving more than 300 million euros in expense cuts over the first half of the year, representing 75% of the bank's 2020 target.
Santander also said that it plans to pay a scrip dividend (payable in new shares) equivalent to 10 cents per share for 2019.
The Madrid-listed shares fell over 3% after this report.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
First-half net profit slipped to 1.9 billion euros, from 3.8 billion euros a year earlier.
However, net interest income remained stable year-on-year, at 16.2 billion euros, driven by revenue growth in Latin America, the corporate and investment banking unit, wealth management and insurance.
This performance, combined with strict cost control, resulted in net operating profit rising 2% to 11.9 billion euros, Santander said.
The group pointed out that it is ahead of schedule in its cost saving plan, with its European unit achieving more than 300 million euros in expense cuts over the first half of the year, representing 75% of the bank's 2020 target.
Santander also said that it plans to pay a scrip dividend (payable in new shares) equivalent to 10 cents per share for 2019.
The Madrid-listed shares fell over 3% after this report.
Copyright (c) 2020 CercleFinance.com. All rights reserved.