Banco Santander second-quarter net profits drop by 18% to €1.4bn primarily related to restructuring charges in Spain and the UK.
The Spanish bank said on Tuesday that its net earnings had fallen to €1.4bn over the three months to June, down from €1.7bn over the same period one year earlier.
The bank took an additional charge of €706m during the quarter, added to the €108m taken in the first, largely related to restructuring costs in the UK in Spain. In the Iberian country, the lender is working on the integration of its 2017 acquisition Banco Popular.
The bank has delivered its strongest underlying quarterly performance in eight years, reflecting the progress we have made in our commercial and digital transformation," Botín said.
However, when excluding those charges, underlying profit increased to €2m in the second quarter alone, up 5% compared to the same period last year. The figure is the strongest underlying quarterly performance since 2011.
Santander's non-performing loan ratio fell 11 basis points in the quarter to 3.51%, and the CET 1 ratio rose seven points during the quarter to 11.3%.
Brazil and the US are among the countries where Santander's net profits have grown more over the first half of the year, rising 18% to €1.5bn in Brazil and 30% in the US to €465m.
Ana Botín, Banco Santander Group executive chairman, said: "The bank has delivered its strongest underlying quarterly performance in eight years, reflecting the progress we have made in our commercial and digital transformation.
"All our businesses continue to deliver solid results, with particularly good growth in North America, which now represents 17% of Group profits (vs. 14% at 30 June 2018)."