Madrid (AFP) - Spanish banking giant Banco Santander on Wednesday announced an 11-percent increase in net profits year-on-year in the third quarter.

The company posted a net profit of 2.42 billion euros ($2.41 billion) between July and September, thanks to strong commercial performance in Poland and Argentina.

It surpassed forecasts of analysts who expected a profit of 2.15 billion euros.

In the year to date profits climbed 25 percent to 7.32 billion euros.

Ana Botin, the executive chair of Banco Santander, said the group had delivered a “strong quarter with revenues increasing and profitability remaining above target… supported by our rock-solid balance sheet”.

She said that they expected the “macroeconomic environment to remain challenging as markets across Europe and North America adapt to levels of inflation not experienced in decades”.

The Spanish bank has 159 million customers worldwide, and said it saw revenues grow fastest in Argentina, Poland and Mexico.

The growth comes despite more pressures at home. Earlier this year the Spanish government said it would slap temporary taxes on banks and energy firms to cover the cost of state measures put in place to help Spaniards grapple with soaring inflation.

Socialist Prime Minister Pedro Sanchez told parliament that the new taxes on lenders should generate around 1.5 billion euros per year and will remain in place for two years.