The largest bank in the euro zone, Spain's Santander, reported a 6% rise in first-quarter profits today as strong growth in Brazil and Britain offset a sluggish home market.
Net profit came in at €2.215 billion, above forecasts of €2.096 billion. Net interest income came in at €7.122 billion, against a forecast of €6.837 billion. Its non-performing loan ratio rose to 3.34%, up from 3.24% at the end of December.
The results came a day after credit rating agency Standard & Poor's cut its ratings on Spain by one notch, sending Spanish and European banking stocks sharply lower and Santander to a near-three-month low.
Hedge funds often use Santander and rival BBVA shares as a proxy for Spain even though Santander is one of the world's most profitable banks and aggressive investment abroad has left just 26% of its business in Spain.
