Santander to Present New Plan as 4Q Profit Beat Expectations -- Earnings Review
30 Gennaio 2019 - 2:31PM
Dow Jones News
By Pietro Lombardi
Banco Santander SA (SAN.MC), one of Europe's largest banks,
reported results for the final quarter of the year on Wednesday.
Here's what you need to know:
PROFIT: Net profit for the quarter rose 34% to 2.07 billion
euros ($2.37 billion), the bank said. This is above analyst
expectations of EUR1.94 billion, according to a consensus forecast
provided by FactSet.
REVENUE: The bank's gross income grew 4% to EUR12.54 billion,
beating expectations of EUR12.17 billion.
WHAT WE WATCHED:
--THE NEW PLAN: Santander will present a new plan in April. It
will continue with the same strategy, building on its strengths,
such as diversification and scale, Executive Chairman Ana Botin
said, confirming that the bank plans to pay a full-cash dividend
for 2019. The banking giant said it targets a return on tangible
equity--a key measure of profitability--of 13% to 15% and a core
Tier 1 ratio of between 11% and 12% in the medium term. The targets
for 2018, which included a double-digit growth in EPS, a core tier
1 ratio above 11% and a RoTE above 11.5%, have been achieved.
--U.K.: Underlying profit fell 8% last year at Santander's UK
operations. The bank mentioned pressure on revenue as a result of
the competitive environment and growing operating costs. Last week,
the banking giant said it will close 140 U.K. branches as a
consequence of the decline in the number of customers using
physical banking.
--BRAZIL: The country remains the main contributor to the bank's
bottom line. Underlying profit at the bank's Brazilian business
grew 22% last year.
--CAPITAL: Santander's core Tier 1 ratio, a key measure of
capital strength, was 11.3% at the end of December from 11.1% in
September. Credit Suisse analysts had expected a ratio of 11.1% as
of December.
Write to Pietro Lombardi at pietro.lombardi@dowjones.com
(END) Dow Jones Newswires
January 30, 2019 08:16 ET (13:16 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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