SAN - Banco Santander stock slumps after Q1 earnings as inflation weighs ono outlook

Banco Santander (NYSE:SAN) stock is dropping 9.7% in midday trading even after the bank posted Q1 a 9.4% Y/Y increase in underlying profit before tax. "Looking ahead, while inflation will affect the pace of global economic growth, with specific impacts varying across our regions and businesses, we are reiterating our 2022 targets, illustrating the benefits of our business model," Executive Chair Ana Botin said in a statement. 2022 financial targets: Revenue growth in mid-single digits, efficiency ratio at 45%, return on tangible equity of more than 13%, and fully loaded common equity tier 1 ratio of 12%. It also reaffirmed its capital return policy to pay out 40% of it its underlying to shareholders, evenly split between cash dividends and stock buybacks. Q1 net interest income of €8.86B  ($9.45B) rose 1.6% Q/Q and 11.3% Y/Y. Q1 net fee income of €2.81B rose 4.5% Q/Q and 10.4% Y/Y. Total revenue of €12.3B rose 4.5%

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Banco Santander stock slumps after Q1 earnings as inflation weighs ono outlook