Santander's profits plunge 98 per cent

Santander's profits plunge 98 per cent

Banco Santander’s fourth-quarter profit last year plummeted 98 per cent, as ‘extraordinary’ provisions were made for Spanish property losses.

The Spanish banking giant’s net profit over the year fell to €47 million (£39 million) from €2.1 billion in the fourth quarter of 2010. 

Over 2011 as a whole, annual profits for the group fell 35 per cent to €5.35 billion, as €1.81 billion was put aside to absorb property losses.

Meanwhile, total revenue at the banking group grew by 5 per cent to €44.3 billion last year, due to new branch openings and new business in the emerging markets.

With regards to its UK operations, pre-tax profit for 2011 fell 42 per cent to €1.57 billion, with Santander blaming provisions made for payment protection insurance (PPI) for the drop.

Banco Santander chairman Emilio Botín comments: ‘Banco Santander has shown it is able to generate a profit and, at the same time, meet the capital requirements set out by the European Banking Authority, significantly increase provisions for property exposure and maintain shareholder remuneration at €0.60 per share for the third consecutive year.’

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