Quarterly net profit rises to 2.28 bln euros
Bank reports fullyear 2021 net profit after 2020 loss
Results are in line with analysts39; forecasts
ROTE target of 13, efficiency ratio of about 45 in 2022
MADRID, Feb 2 Reuters Spain39;s Santander released 750 million euros 846 million in pandemicrelated provisions in the fourth quarter, betting on an economic recovery in its main markets and helping boost net profit eightfold compared to a year earlier.
The coronavirus crisis forced banks in Europe to set aside costly provisions to protect their books from any potential fallout. But banks, mainly in the United States and Britain, are starting to reduce them due to improved economic conditions.
Santander39;s release in provisions came in at the lower end of its previously guided writeback of 700 million to 1 billion euros for the last quarter of 2021.
Net profit of 2.28 billion in the October to December period, a 4.6 rise over the third quarter, while the bank reported a profit of 8.12 billion euros for fullyear 2021 after a record annual loss of 8.77 billion euros in 2020.
Quarterly and fullyear profit matched analysts39; forecasts.
With an improved economic outlook, Santander forecast a return on equity ratio ROTE, a measure of profitability, of over 13 in 2022, up from 12.73 by the end of 2021.
Santander39;s tier1 fully loaded capital ratio, the strictest measures of solvency, rose to 12.12 from 11.85 in September. The ratio would be 11.96 when already…