Spanish banking giant Santander has posted a net profit of €1.54bn for the fourth quarter of 2017, a fall of 4% over the corresponding period a year ago.
The profit was hit by a €752m charge related mainly to the impairment of goodwill in the US business. This was offset by a €297m capital gain from the sale of AllFunds Bank and a €73m gain owing to US fiscal reforms.
The bank’s overall net charge during the quarter was €382m for capital gains and provisions. Net interest income stood at €8.6bn, an increase of 6% compared with €8.09bn a year ago.
Compared to last year, the group’s net fee income increased 12% to €2.95bn and net operating income rose 4% to €6.1bn.
The bank’s CET1 capital ratio as at 31 December 2017 was 10.84% as against 10.55% a year earlier.
Banco Santander Group executive chairman Ana Botin said: “Our recurrent profitability allows us to lend more to customers, increase dividend per share, while generating more than €3bn in capital through organic growth alone.
“Throughout the year we have seen strong growth in Latin America, with our businesses in Brazil and Mexico performing exceptionally well. But it has also been a year of great progress in Europe, and particularly in Spain where the acquisition of Popular has helped accelerate our strategy while providing important certainty and stability for Popular’s customers.”