Santander Profit Beats Estimates on Rate Boost as Costs Jump

  • Higher interest rates are boosting Spanish lender’s margins
  • Cost burden is growing as inflation-linked increases kick in
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Banco Santander SA’s earnings beat estimates as a revenue boost stemming from central-bank rate hikes offsets the impact of higher expenses and the cost of covering souring loans.

The Spanish retail-banking giant posted net income of €2.29 billion ($2.52 billion) in the fourth quarter, exceeding the consensus analyst forecast of €2.1 billion, according to a statement.