Banco Santander posted a considerably lower profit in the third quarter. The Spanish financial group, as previously announced, wrote off more than 1.6 billion euros on its activities in the United Kingdom. In the same country, the bank had to set millions apart for claims related to a scandal of incorrectly sold products.
On the British market, Santander is faced with stricter rules regarding the separation of investment banking activities and services to consumers. The Brexit also creates uncertainty. In addition, just like other financial service providers in Great Britain, Santander is involved in the long-term sale of a type of credit insurance to consumers who were not always aware of it.
The net result amounted to 501 million euros, a decrease of 75 percent on an annual basis. The underlying profit, which does not include the British problems, rose by 4 percent on an annual basis to more than 2.1 billion euros. Santander achieved this growth mainly in Latin America, where Brazil in particular is an important growth market.