Santander profits rise as Abbey sheds more jobs

10th May 2005, Comments 0 comments

10 May 2005, MADRID — Santander Central Hispano, the leading Spanish bank reported a 38.52-percent rise in first-quarter net profit, boosted by the inclusion of British bank Abbey National on its books.

10 May 2005

MADRID — Santander Central Hispano, the leading Spanish bank reported a 38.52-percent rise in first-quarter net profit, boosted by the inclusion of British bank Abbey National on its books.

Net profit in the first three months stood at EUR 1.18 billion, SCH said.

But the news came on the same day Abbey National announced it would make 1,000 more workers redundant, bringing the total to be laid off to 4,000.

The overall profit figure for SCH was in line with expectations by analysts who, nevertheless, showed some unease at the figures.

SCH said the results consolidated for the first time figures from subsidiary Abbey National, the sixth-biggest British bank, which SCH acquired last year.

The takeover propelled SCH to the top rank of eurozone banks by capitalisation.
 
Abbey National contributed EUR 153m to SCH net profit. Excluding this, net profit rose by 20.6 percent.

Net banking income, the difference between the cost of taking in deposits and money earned from loans, rose by 27.9 percent to EUR 2.35 bn euros from EUR 1.84 bn in the first quarter of last year.

Excluding the contribution from Abbey National, it grew by 6.6 percent.

However, analysts had expected this figure to be higher, in a range of EUR 2.39-2.52 bn.
 
Total loans increased by 101.7 percent to EUR 370.06 bn euros from a year earlier. Excluding Abbey National, they rose 15.8 percent.
 
Total deposits stood at EUR 607.82 bn euros by end-March, a jump of 70 percent; excluding Abbey National, they rose 9.8 percent.

The price of shares in SCH fell slightly in early trading amid disappointment over the bank's core business activities in the first quarter, with margins under pressure, dealers said.

SCH shares were down 0.54 percent to 9.19 euros in Madrid trading, while the Ibex-35 index was up a scant 0.02 percent.

"We don't like these results," a dealer at a leading US brokerage said.

"Overall, the quality of these results is poor."
 
[Copyright EFE with Expatica]

Subject: Spanish news

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