Santander Sees First-Half Profit Rising as Bank Sells Stock
- Earnings were about $4.1 billion for the period, bank says
- Lender to sell 1.5 billion shares at 4.85 euros apiece
Pedestrians pass a Banco Santander SA bank branch in Madrid, Spain, on Wednesday, Jan 25, 2017. Santander said fourth-quarter profit rose to 1.6 billion euros ($1.72 billion) on lower provisions for bad loans and higher income from fees and from its business in Brazil.
Photographer: Angel Navarrete/BloombergBanco Santander SA said its takeover of failing Banco Popular Espanol SA will have a minimal impact on first-half earnings, with the bank set to post a profit of about 3.6 billion euros ($4.1 billion).
Spain’s largest lender also set the price of its 7.07 billion-euro capital increase at 4.85 euros each, or 19 percent below Monday’s close of 6 euros, according to statements issued late Monday. The Madrid-based bank is selling 1.5 billion shares to shore up its balance sheet after taking over Banco Popular for 1 euro in a deal brokered by European regulators.