Santander upgraded its full-year forecast as lenders returned to third-quarter profits.
Santander’s net profit rose to 1.755 billion euros. This is three times the profit of the year. Underlying profits rose 18% in the second quarter.
The Spanish lender raised its profit forecast for the year to 5 billion euros.
“These results speak to the strength and breadth of our customer relationships and the resilience of the diverse businesses and markets we operate in,” said CEO Anna Botin.
“This diversification is a key driver of our recovery, with South America performing well and the UK is recovering strongly in the third quarter,” she added.
“Given the group’s current performance, balance sheet strength, liquidity profile and business combination, we are confident that we can resume cash dividends after the regulatory terms are permitted. Therefore, we are seeking shareholder approval today as shareholders were allowed to pay 0.10 euros in 2021.
“While our outlook for 2021 relies on the evolution of the pandemic, our strategy and business model prove that our goal is to continue to support our customers and provide results to our shareholders.”
Santander has set aside 2.5 billion euros to address the expected loans in the third quarter.
By the end of 2020, the bank expects to meet its 2019 cost-cutting target of 1 billion euros in Europe, and cut costs by another 1 billion euros over the next two years.
The group’s stock (LON: BNC) is trading +4.97% at 162,70 (0844GMT).
