Banco Santander expects rise in profits in 2008

By Robert Hetz

SANTANDER, Spain (Reuters) - Spain's biggest bank, Banco Santander (SAN.MC) said on Saturday it would significantly boost profits in 2008, buoyed by growth in Latin America just as many of its international peers suffer credit crunch woes.

Attributable net profit should come in at over 10 billion euros in 2008, following recurrent net profit of 8.11 billion euros in 2007, up 23 percent from a year earlier, Chairman Emilio Botin said on Saturday.

"It will be practically all recurrent profit," Botin told a shareholders' assembly in Santander, reaffirming the bank's target of boosting earnings per share by 15 percent.

He said the worst of the credit crunch, which has slashed earnings at many big banks, was now over.

"In terms of risk premiums and liquidity tensions, the worst has now passed and normality should be gradually restored in world markets," Botin said in a speech.

Santander, which has risen to be the world's seventh-largest bank in terms of stock market capitalization from eleventh three years ago, will pay a first dividend on 2008 results of 0.135234 euros per share, 10 percent more than the equivalent dividend last year.

"Our aim is to use 50 percent of our ordinary profits for dividends," Botin said.

The global financial shakeout, which has hit bank valuations, could present takeover opportunities, Botin said, but any possible buy would have to add value and add to earnings per share as quickly as possible.