Santander Battles Cost Headwinds as Rate Hikes Boost Revenue
- Lender beat consensus after posting net interest income gains
- Spanish giant is also grappling with higher costs, provisions
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Banco Santander SA said rising costs linked to inflation could leave it short of its efficiency goal for the year while worsening credit quality trends in Brazil were also in focus, even as the lender’s earnings beat analysts’ expectations.
The Spanish retail-banking giant posted net income of 2.42 billion euros ($2.4 billion) in the third quarter, exceeding the consensus analyst forecast of 2.2 billion euros, according to a statement. Shares fell as much as 5% as the lender said it would now get “close” to a cost-to-income target announced early this year amid inflationary pressure.