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Investing.com -- Banco Santander (BME:SAN) reported a 19% increase in first-quarter profit and a 26% rise in earnings per share, but shares fell more than 5% Wednesday after net interest income came in flat and revenue growth slowed.
Net profit rose to €3.4 billion in the quarter ended March 31, up from €2.86 billion a year earlier, the bank said. Earnings per share rose to €0.21. Return on tangible equity increased to 15.8% from 14.1%.
Total (EPA:TTEF) income rose 1% to €15.54 billion. In constant euros, revenue rose 5%. Net fee income climbed 4% to €3.37 billion, with a 9% increase in constant terms. Net interest income was flat year over year, excluding a 4% gain in constant euros outside Argentina.
Operating expenses fell 1%, improving the efficiency ratio to 41.8% from 42.6%. Net operating income rose 2% to €9.05 billion.
Loan-loss provisions increased 1% to €3.16 billion. Cost of risk declined to 1.14%, while the non-performing loan ratio improved to 2.99%.
Santander added nine million customers during the quarter, bringing the total to 175 million. Customer funds rose 5% in constant euros, and loans grew 1% to €1.02 trillion.
The bank’s Common Equity Tier 1 capital ratio rose to 12.9%, up 0.1 percentage points from December.
Santander will pay a final dividend of 11 euro cents per share on May 2, resulting in a total dividend of 21 cents for 2024, up 19%. The payout is accompanied by share buybacks totaling about €3.1 billion.
Retail and Commercial Banking profit rose 28% to €1.9 billion, with a lower cost base and higher revenue.
The Digital Consumer Bank posted a 6% profit increase to €492 million. Corporate and Investment Banking delivered record quarterly profit of €806 million, up 18%, supported by fee growth and strong market activity.
Wealth Management and Insurance profit rose 28% to €471 million, with assets under management reaching €511 billion. Payments profit rose 30% to €126 million on higher volumes and card spending.
Santander maintained its full-year targets, including revenue of about €62 billion, a return on tangible equity of around 16.5% post-AT1, a cost of risk near 1.15%, and a CET1 ratio around 13%.