Santander Q2 profits down by 92%
Spain’s Banco Santander reported today a 93% decrease in Q2 net profit, as during the quarter the bank set aside almost all of its earnings as provisions against real-estate losses.
Santander, which is the largest bank in the eurozone by market value, reported €100m net profits for the quarter, a significant decrease compared to €1.39bn last year.
In the second quarter, Santander set aside €1.304bn to cover losses on its Spanish real-estate exposure, on top of €1.6bn in the fourth quarter last year.
In the first half, profit fell 51% on the year to €1.7bn and profit from Latin America weakened as the bank sold its Colombian unit for €884m.
Emilio Botín, chairman at the bank said: “The first half results make us one of the most solid and efficient banks in the world and show we are able to increase revenues and keep costs under control even in a difficult environment. The provisions we are making will allow us to put real estate write-offs in Spain behind us by the end of this year.”