Banco Santander SA’s earnings beat estimates as higher interest rates in Europe boosted revenue, offsetting the impact of provisions in Poland and a weaker Brazilian business.

The Madrid-based retail-banking giant posted net income of €2.67 billion ($2.95 billion) in the second quarter, exceeding the consensus analyst forecast of €2.58 billion, according to a regulatory filing Wednesday. It recorded provisions in Poland linked to mortgages and recorded weaker banking activity in the Americas.

Santander has been relying on factors such as higher rates in Europe, client growth in Mexico and higher fees in Spain to help meet Chairman Ana Botin’s target of increasing profitability and boosting payouts to investors. The lender is also trying to improve the quality of its assets in the US and Brazil, it’s second-largest market.

As part of its expansion drive, Santander is also doubling down on investment banking in the US, where it’s seeking to become a large Tier 2 player. It’s seeking to do this via primary broker services and financial advisory in specific sectors such as infrastructure and energy transition where it has a track record.

The lender has in recent months hired several executives from Credit Suisse and has been in talks to hire dozens more, people familiar with the matter have said. Investment banking currently represents about a third of group profit.

At home, Santander and other banks have come under government criticism for not increasing remuneration to clients for their deposits even as interest rates rise. Lenders have argued that clients aren’t requesting payments as they have other better options for remuneration, even though some smaller lenders are starting to pay.

Business at the corporate and investment banking unit grew 28% to €1.88 billion.