Santander reports rise in profit

30 July 2013

Santander has seen its profits jump 29 per cent in the first half of 2013, despite weaker earnings in Spain and Latin America.

Net income climbed to €1.05 billion ($1.39 billion) from €123 million a year ago.

The Spain-based bank said in an earnings statement net profit in Latin America fell by more than 16 per cent between January and June 2013, with Brazil dropping by 17.5 per cent. The company makes half of its money in the region and investors are concerned about the deterioration of this market.

Meanwhile, in Europe and Spain, which contributes about 11 per cent to overall profit, net interest income was reduced by low interest rates across the eurozone. It fell by close to 17 per cent in Spain to €2.2 billion in the first half of the year, but it did improve in the second quarter compared to the first.

This earnings report is the first to be presented by Javier Marin, who was named as the institution's new chief executive officer in April 2013 after Alfredo Saenz left.

By Claire Archer

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