Wholesale banking profits at Spain's Santander rose by a fifth last year to €1.35bn ($1.76bn), as investment banking revenues climbed by a third to more than offset higher loan loss provisions and compensation expenses.

Operating profits improved 40% in the wholesale banking division compared to the same period a year ago, but pre-tax profits were dragged back by higher compensation costs and loan loss provisions that grew more than fourfold to €298m.