STD Banco Santander, S.A. Sponsored Adr (Spain)

Adds earnings details, mid-term targets

   By Pietro Lombardi 

--Banco Santander 4Q net profit beat expectations

--The bank achieved its 2018 targets, including double-digit growth in EPS

--Last year's results benefited from significant growth in customer revenue in markets such as Brazil, Spain, Mexico and the US.

Banco Santander SA (SAN.MC) achieved the targets of its three-year strategic plan and closed 2018 with a profit beat as fourth-quarter net profit topped expectations.

Net profit for the period rose 34% on year to 2.07 billion euros ($2.37 billion), the Spanish lender said Wednesday.

Gross income, Santander's top line, rose 4% to EUR12.54 billion.

Analysts had expected a net profit of EUR1.94 billion on gross income of EUR12.17 billion, according to a consensus forecast provided by FactSet.

For the full year, the bank reported net profit of EUR7.81 billion on gross income of EUR48.42 billion, the latter being the highest on record, the bank said.

Last year's results benefited from significant growth in customers revenue in several markets, such as Brazil, Spain, Mexico and the US.

"2018 has been an excellent year for the group. We have successfully completed our three-year strategic plan," Executive Chairman Ana Botin said.

Santander's core tier 1 ratio, a key measure of balance-sheet strength, rose to 11.3% at the end of December from 11.1% as of September. This "in spite of external and regulatory headwinds," Ms. Botin said.

In the medium term, the bank targets a RoTE of 13% to 15% and core tier 1 ratio of between 11% and 12%.

"Latin America has remained an important engine for growth within the Group, with especially strong progress in Brazil and Mexico," she said.

The bank has achieved its 2018 targets. These included a double-digit growth in EPS, a core tier 1 ratio above 11% and a return on tangible equity--a key measure of profitability--above 11.5%.

Write to Pietro Lombardi at pietro.lombardi@dowjones.com

(END) Dow Jones Newswires

January 30, 2019 03:20 ET (08:20 GMT)

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