Santander books record quarterly profit on retail unit, delays UK results

By Jesús Aguado

MADRID (Reuters) -Santander booked a record net profit in the third quarter thanks to a solid performance at its main retail business in a set of earnings overshadowed by a British court ruling affecting motor finance brokers.

Overall, the group's net profit in the third quarter rose 12% year-on-year to 3.25 billion euros ($3.5 billion), slightly above the 3.1 billion euros expected by analysts in a Reuters poll.

Results at the euro zone's third-biggest lender were helped by a decline of 9% in net loan-loss provisions in the quarter and a 17.5% rise in profit at its main retail unit.

On Monday, Santander (BME:SAN )'s UK unit, which usually publishes its results separately, said it postponed the release of its earnings following a London court ruling last week that ordered motor finance brokers to fully inform customers about commissions when taking out car loans.

Santander UK, which is one of a number of key providers of motor finance in Britain, said it was "not practicable to reliably estimate at this point in time the extent of any potential financial impact" and that it was taking time to assess it.

A spokesperson for Santander said on Monday the bank did not expect any material impact on the group's financial position from a review by the Financial Conduct Authority related to the London court decision on motor finance.

Santander, however, included the results of its British unit in group earnings.



Net profit in Britain fell 18.6% year-on-year in the third quarter, while lending income was down 6.6% amid fierce competition in the mortgage market.

($1 = 0.9251 euros)

Source: Investing.com