Spain's Banco Santander posts 1 pct profit rise ahead of forecasts

MADRID, Oct (HKSE: 3366-OL.HK - news) 26 (Reuters) - Spain's Banco Santander (Amsterdam: 817651.AS - news) on Wednesday posted a 1 percent rise in third-quarter net profit from a year earlier, above analysts' forecasts and helped by strong business in its key Brazilian market.

Santander, the euro zone's second biggest bank by market value, reported net profit of 1.7 billion euros ($1.85 billion) beating analysts' estimates of 1.5 billion euros in a Reuters poll.

Net (LSE: 0LN0.L - news) interest income, a measure of earnings on loans minus deposit costs, was 7.8 billion euros in the third quarter, down 2.3 percent from a year ago, mirroring pressure on margins experienced by other Spanish banks.

Last month Santander warned investors that it would be less profitable than expected in the years ahead, citing poorer prospects in Britain and Spain, its first and third biggest markets respectively. ($1 = 0.9186 euros) (Reporting by Angus Berwick and Jesus Aguado)