(Bloomberg) -- Banco Santander SA said it’s on track to outperform a key profitability metric for the year with earnings from the U.S. and U.K. fueling the Spanish lender’s bounce-back from historic losses linked to the pandemic.
The bank posted net income of 2.1 billion euros ($2.5 billion) in the second quarter, topping analyst estimates as its U.S. consumer-lending business and lower provisioning charges helped power the recovery. The rebound follows an 11.1 billion-euro quarterly loss last year after impairments booked at the height of the health emergency.
“Our team has delivered another very strong quarter,” Chairman Ana Botin said in a statement on Wednesday. “We are on track to outperform our profitability target for the year.”
She’d told shareholders in March that a strong first-quarter performance by the bank would drive the business to an underlying return on tangible equity of about 10% for 2021.
Botin is predicting economic expansion in Spain and around the world will be “off the charts,” while piloting the lender’s growth in areas such as U.S. fixed-income trading. With capital levels above its target, the bank is accruing 50% of underlying profit this year to distribute to shareholders after the European Central Bank said it will remove the restrictions put in place during the health crisis.
Santander shares are up 25% this year, compared with a 23% gain for the STOXX 600 Banks Index.
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