Spain’s Banco Santander has announced its second-quarter financial results, revealing a rise in net profit that surpassed expectations. The bank reported a net profit of €2.67 billion ($2.95 billion) for the period of April-June, compared to €2.35 billion during the same period last year.
Total revenue for the quarter also saw an impressive growth, reaching €14.09 billion, up from €12.815 billion in the previous year. This increase was primarily driven by higher interest rates, which resulted in a boost in the bank’s net interest income. Santander reported net interest income of €10.52 billion, compared to €9.55 billion in the previous year.
Analysts had projected Santander’s net profit to be around €2.54 billion, with a revenue estimate of €13.975 billion.
The bank’s fully-loaded core equity Tier 1 ratio, a measure of its financial strength, remained steady at 12.2% at the end of the June quarter, consistent with the ratio reported as of March 31.
Banco Santander expressed confidence in achieving its targets for the full year, as the positive momentum continues.