- Banco Santander
- 29 October 2024 10:05:00
Source: Sharecast
The Court of Appeal on Monday set a higher bar for motor dealers acting as credit brokers, requiring them to disclose commissions paid by lenders more comprehensively to customers.
Late on Monday, Santander UK said it was delaying its third-quarter results, adding: "It is not practicable to reliably estimate at this point in time the extent of any potential financial impact."
In an interview with Bloomberg TV, Banco Santander chief financial officer Jose Garcia Cantera said the impact of the motor financial ruling would not be material, estimating less than €600m in net income. However, other analysts, such as those at RBC Capital, expect the hit to be closer to €1.3bn.
Shares were down 3.2% at €4.48 by 1047 in Madrid, while London-listed shares were 3.1% lower at 371.62p.
The development was overshadowing results from the parent group on Tuesday, which reported a 12% year-on-year increase in net profit to €3.25bn in the third quarter, comfortably ahead of the €3.1bn consensus forecast.
Total income improved by 2% to €15.14bn, with the company hailing strong revenue growth across all global businesses and regions, as well as the addition of 5m new customers.
Also helping the bottom line was a 9% fall in net loan-loss provisions to €2.98bn, and a 2% drop in operating expenses to €6.35bn.
