28/10/2011
Profits down for asset management at Santander
In the first nine months of 2011, net profits for investment funds from the Santander group fell 58.6% compared with January-September, to EUR23m, while pension fund profits fell by 14.3% to EUR7m. Total assets as of the end of September were EUR114bn, 8% less than in June, and 4% less than one year previously. This contraction is largely due to falling markets and a recent depreciation of Latin American currencies. Assets under traditional management totalled EUR111bn (-2% year on year). Of this total, 90% came from the four major markets of Brazil, the United Kingdom, Spain and Mexico. The Santander group overall in January-September earned net profits down 12.8% to slightly over EUR5.3bn. This amount includes EUR620m in a fund created in second quarter to cover potential claims related to sales of payment protection insurance in the United Kingdom. In the first nine months of the year, the cost/income ratio deteriorated to 44.3% from 42.9%.
