Santander Slides 4% as Q3 Profit Dips on Impairments, Webster Integration Costs
SAN sits 21% above its 52-week low of $9.85.
Summary
Q3 attributable profit fell 2.4% from the prior quarter to €3.43B, in line with consensus, but the quality of the print disappointed. Net interest income of €11.83B missed the €12.03B consensus and net fee income of €3.50B came in under the €3.55B estimate, while loan-loss provisions rose 4.1% to €3.49B versus the €3.39B expected. Charges for intangible asset impairments and integration costs tied to M&A — Webster's results are now included from August 20 — weighed on the quarter. EPS of €0.23 still beat the €0.22 consensus, and the 6-K filed this morning showed nine-month underlying profit up 16% to €11.2B on 8% revenue growth with costs down 1%. Shares were 4.17% lower at $11.95 pre-market, a modest reaction for a large-cap bank and one that reads as disappointment over the revenue lines rather than the bottom line.
At the time of this announcement, SAN was trading at $11.96 on NYSE in the Finance sector, with a market capitalization of approximately $182.3B. The 52-week trading range was $9.85 to $15.05. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.