Santander said it remained on target to generate
earnings growth in 2008 of 20 percent after reporting third quarter
net profit of €2.2 billion ($2.8 billion), and said it was
comfortable with a core Tier 1 ratio of around 6
percent.
Its earnings growth for the year-to-date of 16 percent, on a
nine month net profit (excluding capital gains) of €6.94 billion
compared to €6.52 billion the year earlier, means it needs to make
€2.8 billion in the final quarter to hit its 20 percent target.
Chairman Emilio Botín maintained the bank had adequate capital,
with core Tier 1 at 6.31 percent, despite the much higher levels
taken by other European banks, mainly through government capital
injections.
He said: “Having 6 percent to 6.3 percent for our assets in our
business is more than enough, it is very comfortable. It has
nothing to do what other banks have, with completely different
businesses and toxic assets…
“We have to judge 6 percent in its context.”
BBVA, which has core Tier 1 capital of 6.4 percent, reported
third quarter net attributable profit, excluding one-off items, of
€1.39 billion, compared to €1.34 billion the year before. On the
same measure, its nine-month net profit for the year-to-date was
€4.32 billion, up 9.1 percent.
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