Santanders 2nd Qt Profits down

Banco Santander yesterday released its second-quarter figures, showing how their net profit fell by 8% - with strong revenue growth in Latin America being offset by higher loan losses due to the on-going recession in Europe.

Santander, Spain's biggest bank and the eurozone's largest by market capitalization, reported how net profit fell to 2.23 billion Euros between April and June compared to 2.42 billion Euros for the same period last year. However, gross income increase 5% to 10.61 billion Euros from 10.14 billion Euros, Santander said.

Net profit for the entire first half stood at 4.45 billion Euros, down 1.6% from 4.52 billion Euros in 2009.

Santander said the non-performing loan rate was 3.37% for the first half, Increasing from 2.83% for the same period in 2009.

Second quarter loan loss provisions increased 2% at 2.48 billion Euros from 2.42 billion Euros for the same period last year. The bank said that figure and coverage of 73% "compare very well by international standards."

By region, net profit rose by 19.6% in Latin America to 2.16 billion Euros in the first half whereas it dropped in Europe by 5.6% to 2.55 billion Euros.

Shares in Santander on the Ibex35 were trading down 1.39% at 10.28 Euros.