Santander Q3 net profit falls 75% as UK charges offset Brazil strength
Adds breakdown of Q3 figures
MADRID, Oct 30 (Reuters) - Santander SAN.MC posted on Wednesday a 75% decline in third-quarter net profit from a year earlier due mainly to one-off charges in the UK, offseting a solid performance in Brazil, its main market.
The euro zone's biggest lender in terms of market value booked one-off charges of around 1.5 billion euros($1.67 billion) as a result of a review of the goodwill ascribed to Santander UK, with tough competition for lending and uncertainty around Brexit.
On top of that impairment, Santander also set aside 103 million euros for a payment protection insurance compensation in the UK and other charges of 40 million euros.
Santander reported net profit of 501 million euros in the period July to September. Analysts had expected net profit to come in at 445 million euros, according to a Reuters poll.
Without taking into account the impairments, underlying profit rose 7% in the third quarter.
Santander's diversification overseas, especially in Latin America, has helped the bank cope with tough conditions for banks in Europe in the years since the financial crisis.
In Brazil, net profit for the quarter rose 24.7%.
Overall, net interest income, a measure of earnings on loans minus deposit costs, was 8.8 billion euros, up 5.5% from the third quarter of last year but down 1.7% against the previous quarter. Analysts had forecast a net interest income of 8.85 billion euros.
($1 = 0.9000 euros)
(Reporting By Jesús Aguado; editing by Jose Elías Rodríguez and Ingrid Melander)
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