UPDATE 2-Santander's profits hit by Brazilian currency fall

jueves 29 de octubre de 2015 04:23 GYT

* Q3 net profit up 4.7 pct year-on-year

* Meets forecasts, though falling currencies drag

* Brazil in focus amid recession, falling real

* Shares fall (Adds comments by management, analyst; comparison with BBVA, details on Spain, returns)

By Sarah White and Jesús Aguado

MADRID, Oct 29 (Reuters) - The drop in the Brazilian real and other Latin American currencies weighed on Santander's third-quarter earnings which it reported on Thursday, highlighting potential pitfalls ahead for the euro zone's biggest bank as it aims to increase returns.

Income from other key markets, including the United Kingdom, helped Santander counter the currency hit to an extent, and group net profit rose nearly 5 percent on the same period last year, though it fell quarter-on-quarter.

Santander relies on Brazil for about a fifth of its earnings, but the country's economy has slumped into its worst recession in nearly three decades.

Once Santander's biggest earnings motor, which helped it withstand a severe downturn in its Spanish home market, Brazil's contribution to the bank's profits has dropped below that of its UK business.   Continuación...