Santander reports 4% rise in annual profit despite weak British performance

Spain's largest bank, Banco Santander, kicked off the country's earnings season on Wednesday by reporting a 4% increase in annual profit, despite lower profit through its operations in Britain.

Total net profit for 2016 was €6.2bn, boosted by an improvement in credit concession and strong growth of 9.5% in its Brazilian business.

The results of the final quarter of 2016 were also released by the Spanish entity, in which it surpassed analysts' estimates and its shares shot up 5% on the Ibex 35.

A profit of €1.6bn was announced for the fourth quarter of the year, massively outperforming the same quarter in 2015, when it was €25m following a mis-selling compensation bill in Britain.

The positive results from Santander come despite various obstacles in the last fiscal year, including doubts surrounding PPI in Britain, as well as its exposure to debt from an oil deal in the US. It will not be affected, however, by the so-called "floor clause" mortgage scandal which is likely to plague other Spanish banks in this results season.

"In 2016 Santander achieved very positive results and fulfilled our strategic objectives," said Santander executive chairman Ana Botín.

"Santander is one of the most profitable and efficient banks, thanks to the talent and work of our teams, which have contributed to excellent results, doing things in a simple, personal and fair way."