Santander H1 net profit in line with f/casts

The euro zone's largest bank, Santander, reported first-half profits in line with forecasts on Thursday with thriving business in Latin America setting off sluggish income in home market Spain.
Santander, which emerged as one of the best capitalized banks in Europe following Friday's stress tests, said first half net profit fell 1.6% to 4.445 bln euros, against a Reuters polled forecast of 4.48 bln euros.
Net interest income, what a bank earns on loans minus what it pays on deposits, rose 15% to 14.499 bln euros also in line with expectations, driven by record profits at its Brazilian business — an engine of growth for the bank.
A Reuters poll of 10 analysts forecast net interest income of 14.4 bln euros.
Santander's Brazilian bank, which has a market value greater than Germany's Deutsche Bank, saw profit grow 35% during the period to 1.294 bln euros and lending grow 28%.
Latin America accounts for around 40% of the bank's group profits. It raised 7 bln euros last year with the floation of its Brazilian business — the world's largest initial public offering in 2009.
Santander's shares have outperformed European peers by around 14% since shares hit a 12-month low in early June when fears about the Spanish economy peaked. Santander and peer BBVA are often used as trading proxies for Spain by hedge funds.