Underlying net profit increased to €3.77 billion ($4.3 billion), slightly above the €3.75 billion expected by analysts in a Reuters poll. A year-on-year rise of 12% in fees and of 10% in lending income in the second quarter also supported earnings.
Santander's diversification has insulated the bank from economic downturns in individual regions but left it vulnerable to currency depreciations, particularly in Latin America. It is now expanding further in developed markets such as Britain.
"The successful completion of the TSB acquisition ... marks another important milestone in the execution of our strategy. It strengthens our position in one of our core markets", Santander Executive Chair Ana Botin said in a statement.
Taking into account restructuring charges of €250 million related to the acquisition of TSB, which was closed at the end of April, attributable net profit just rose 3% year-on-year in the quarter to €3.52 billion.
($1 = 0.8767 euros)
