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Banco Santander 3Q profits up 4.4 pct

Banco Santander 3Q profits up 4.4 pct

Banco Santander reported Tuesday a 4.4 percent increase in third-quarter net profits on the back of steep cost cuts as revenue growth was hurt by the financial crisis.
The euro zone's largest bank by market capitalization said net profits rose to 2.205 billion euros ($2.75 billion) in the third quarter from 2.113 billion euros ($2.63 billion) in the same period a year ago.
For the first nine months of 2007, net profit excluding capital gains totalled 6.935 billion euros ($8.64 billion), up 5.5 percent from 6.572 billion euros ($8.19 billion).
Banco Santander said in a statement that the global financial crisis and economic slowdown have resulted in slower growth in activity and an increase in non-performing loans, which required greater provisions.
"These effects have been offset by managing prices to adapt to the situation and by stepped-up cost control, as revenues rose by 13 percent, 4 times higher than the 3 percent rate of growth in costs," the bank said.
In noontime trading, Santander shares were up 1.86 percent at 7.00 euros ($8.72).
The bank said its net profits in Latin America were up 6 percent to 2.167 billion euros ($2.7 billion) in the first nine months of the year.
It noted that, while other banks have struggled during the current financial turmoil, Santander made three major acquisitons recently, buying Alliance & Leicester and the deposits and distribution channels of Bradford and Bingley's, both in Britain, and bidding for the capital it did not already own in Sovereign Bancorp in the United States.


Updated : 2021-04-17 15:50 GMT+08:00