Q2 net profit rises to 2.35 bln euros vs forecasts 2.38 bln
Net loan loss provisions rise almost 50 yearonyear in Q2
Brazil shows some pressure in lending income in Q2
Botin warns of difficult environment

MADRID, July 28 Reuters Santander on Thursday said its second quarter net profit rose 14 from the same period a year ago boosted by higher revenues in Europe and the Americas.

But the results also showed some ongoing deterioration in its asset quality, higher costs and higher provisions, especially in Brazil, its main market.

The euro zone secondbiggest bank by market value booked a net profit of 2.35 billion euros up from 2.07 billion euros in the same quarter a year ago.

Analysts polled by Reuters expected net profit of 2.38 billion euros.

Overall, net loan loss provisions rose 49.5 in the second quarter compared with the same quarter a year ago, while the cost of risk, which measures the cost of managing credit risks and potential losses for the bank, rose to 83 basis points from a previous 77 points in March.

Looking ahead, the economic context will likely be difficult for governments, central banks, businesses and individuals, Santander Chairman Ana Botin said in a statement.

Santander39;s diversification, especially in Latin America, has helped the bank cope with tough conditions for lenders in Europe since the financial crisis, where it has been cutting costs to cope with ultra low interest rates.

The efficiency measures in Europe coupled with…