Spain's Santander reports a 20% increase in net profit due to the success of its retail business.

• The company's net profit attributable to the parent group was 3.207 billion euros ($3.48 million), in line with analysts' predictions.
• The bank's solvency improved, as its fully-loaded CET1 ratio increased from 12.3% in the March quarter to 12.5% in the three months to June.

The company experienced a 20% increase in second-quarter net profit due to growth in its retail, wealth, and consumer activities, despite challenges in Europe and Brazil.

The company's net profit attributable to the parent group was 3.207 billion euros ($3.48 million), in line with analysts' predictions.

The bank's solvency improved, as its fully-loaded CET1 ratio increased from 12.3% in the March quarter to 12.5% in the three months to June.

The bank's return-on-tangible-equity ratio increased to 16.8% in the June quarter, surpassing its previous guidance of 16% for full-year 2024.

Santander has revised its revenue growth forecast from mid-single digit expansion to high-single digit growth.

Other highlights included:

• In the second quarter, the company's pre-tax profit was 4.925 billion euros, compared to 4.258 billion euros in the same period of the previous year.

• In the June quarter, net interest income was 11.47 billion euros, lower than the 11.96% forecast for the second quarter of 2024, despite being higher than the same three-month period in the previous year at 10.52 billion euros.

The bank identified a "negative impact from hyperinflation adjustment" in Argentina, where President Javier Milei is focused on controlling price increases.

Despite the unstable political climate, we are optimistic about achieving our more challenging goals due to our diverse portfolio, robust business model, and skilled workforce - whom I thank again for their hard work.

This breaking news story is being updated.