By Xavier Fontdegloria


Banco Santander SA reported an increase in second-quarter net profit and backed its targets for 2022 as a double-digit rise in revenue more than offset higher loan-loss provisions and costs.

The Spanish lender--one of the eurozone's largest banks--said Thursday that it posted a net profit of 2.35 billion euros ($2.40 billion) from April to June, a 14% increase compared with EUR2.07 billion in the same period a year earlier. The figure matches a consensus from analysts provided by FactSet.

Total revenue rose 13% to EUR12.81 billion from April to June. Net interest income--the difference between what banks earn on loans and pay clients for deposits--increased 16% to EUR9.55 billion.

Net loan-loss provisions increased 50% to EUR2.63 billion, due in part to the release of provisions in the second quarter of 2021 as well as the expected normalization in provisions in the U.S., the bank said.

Banco Santander backed its financial targets for the full year, based on an underlying return on tangible equity--a key measure of profitability--of more than 13% and revenue growth at around the mid-single digit.


Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com


(END) Dow Jones Newswires

07-28-22 0213ET