Spain's Santander has today beaten forecasts with an 11% rise in third-quarter net profit as rising banking revenues offset higher provisions in some of its main markets, such as Brazil and the US.
The euro zone's second-biggest lender by market value booked a net profit of €2.42 billion, up from €2.17 billion in the same quarter last year.
Analysts polled by Reuters had expected a net profit of €2.19 billion.
"We expect the macroeconomic environment to remain challenging as markets across Europe and North America adapt to levels of inflation not experienced in decades," Santander's Chairman Ana Botin said in a statement.
Net loan-loss provisions rose 24% year-on-year to €2.76 billion against an uncertain macroeconomic backdrop, mirroring the picture at lenders in the US.
JP Morgan, for example, set aside more cash in preparation for a hit from a potential economic slowdown.
Santander's diversification, especially in Latin America, has helped it cope with tough conditions for lenders in Europe since the financial crisis.
The bank benefited from local currency swings in Latin America, but results in this region were also marked by rising inflation.
Overall, costs rose 8.5% from a year ago in constant currencies at a group level.
Revenues climbed 13% year-on-year to €13.51 billion, more than the €13.15 billion analysts had forecast.
Net interest income, a measure of earnings made on loans minus deposit costs, rose 18.8% year-on-year to €10.05 billion, beating forecasts for €9.78 billion on the back of higher interest rates in emerging and developed markets.
