Blogs and advice from Industry leading Specialists
Valuable Opinions, Comments & Gossip
Financial related News & Articles relating to Spain
Latest News, Stories
& Hot Topics
Various Tools & Widgets to help with your financial needs
Tools & Widgets to
help with finances
Polls, Surveys and Opinions featured throughout Tumbit
Featured Polls, Surveys & Stats
Discussions, Advice & Topical Chat
Discussions, Advice & Topical Chat

Santander 2011 net profit down 35 pct on provisions

Source: Reuters - Tue 31st Jan 2012
Santander 2011 net profit down 35 pct on provisions

Spain's Santander reported on Tuesday 2011 net profit of 5.35 billion euros, down 35% after the group took extra provisions against deteriorating real estate assets.

The euro zone's biggest bank became the latest Spanish lender to announce it would set aside capital to cover its exposure to the property sector ahead of expected government demands for banks to ramp up provisions.

The bank said it would set aside 3.2 billion euros in extraordinary provisions - of which 1.8 billion euros would allow the lender to raise its coverage for foreclosed Spanish property assets to 50% from 31%.

Recurring net profit was 7.02 billion euros, 14% less than in 2010 and in line with analysts' expectations, Santander reported. Net interest income, what a bank makes on loans minus what it pays out on deposits, rose 5.5% to 30.8 billion euros.

Unlike weaker domestic players, Santander can absorb greater provisions thanks to thriving businesses outside Spain. Spain accounts for less than 10% of group profit. Latin America, led by Brazil, contributed more than half of group profit for the first time in 2011.

Bad loans as a percentage of total loans rose to 3.89% from 3.86% at end September.

Comment on this Story

Be the first to comment on this Story !!

Related Partners

Recommended Items

Related Articles

Related Blogs