Spanish banking products provider Banco Santander, S.A. (SAN, BNC.L) Thursday reported about 26 percent fall in first-quarter profit, citing mainly slower economic growth and low interest rates.
However, Chairman Emilio Botín said profit in 2013 will be significantly higher than the 2.295 billion euros registered in 2012. The company also sees quarter-to-quarter improvement in 2013.
In the first quarter, net profit attributable to the Group was 1.21 billion euros, down 25.9 percent from 1.63 billion euros in the previous year. On a per share basis, earnings were 0.12 euros, lower than 0.17 euros per share in the prior-year quarter.
In Latin America, attributable profit declined 18 percent, in Continental Europe, attributable profit was down 27 percent, and the UK showed a decrease of 23 percent. In the U.S also, attributable profit decreased 2 percent from last year.
Net Spanish real estate exposure fell 47 percent to 11.94 billion euros.
Net operating income was 5.29 billion euros, down 15.2 percent from a year earlier.
Revenues for the quarter fell 9 percent to 10.29 billion euros. The company attributed the decline in revenues to deceleration in key economies, lower interest rates, which were at lows in euros, pounds, dollars and Brazilian reales, as well as the Group's decision to maintain high levels of liquidity.
Net interest income dropped 14.3 percent to 6.65 billion euros.
Total assets declined 0.1 percent to 1.28 trillion euros, while customer deposits increased 1.6 percent to 653.23 billion euros.
Basel II core capital improved 0.34 percentage point in the quarter to 10.7 percent.
In Madrid, the shares are currently trading at 5.4 euros, down 3.93 percent, on a volume of 38.09 million shares.
Banco Santander shares closed Wednesday's regular trading at $7.33 on the NYSE.
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