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.’

Subscribe to Money Observer Magazine

Be the first to receive expert investment news and analysis of shares, funds, regions and strategies we expect to deliver top returns, plus free access to the digital issues on your desktop or via the Money Observer App.

Subscribe now

Add new comment