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(Sharecast News) - Banco Santander said on Tuesday that profits jumped in the first quarter, boosted by higher interest rates.
The Spanish banking group said revenues rose 10% in the three months to March end to a record €15.38bn. Analysts had expected revenues closer to €15.06bn.
Net interest income jumped 18% to €11.98bn, on the back of increased customer activity as well as higher interest rates.
Attributable profit sparked 11% to €2.85bn on a constant currency basis.
Ana Botin, executive chair, said: "It has been a very strong start to the year.
"We are starting to hit our stride, with retail increasing profit contribution by over 20% supported by good growth in NII in Europe and the Americas, and both corporate and investment banking (CIB) and wealth accelerating fee growth."
Santander's retail division accounts for more than half of the bank's income.
Botin added that the bank remained "well on track" to meet all its targets for the year, including a return on tangible equity of 16%. First-quarter RoTE was 14.9%, or 16.2% once the impact of the Spanish bank levy was annualised.
Last month Santander, which has 166m customers worldwide, confirmed plans to return €6bn to shareholders in dividends and buybacks this year.
Jefferies, which has a 'buy' rating on the Madrid-listed stock, said: "Revenue dynamic [is] trending well, with Spain particularly strong. Brazil NII and asset quality trends also supportive, alongside good performance in fees in the US."
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