BANKING

Santander's earnings fall 21 percent on provisions

Bank tapped ECB for 35 billion euros in long-term funds

Banco Santander's net income in the first quarter declined 23.9 percent to 1.604 billion euros after it increased its provisions for non-performing loans by 51 percent to 3.127 billion.

Without the provisions, earnings increased 9.2 percent to a quarterly record of 6.280 billion euros. The bank's net interest income rose 10.6 percent to 7.821 billion euros.

The group's non-performing loan ratio rose to 3.98 percent from 3.61 percent a year earlier. Santander said its core capital ratio at the end of March was 9.11 percent, meeting the European Banking Authority's requirement of 9 percent ahead of time.

Attributable earnings in Spain and Portugal fell 72.8 and 63.8 percent respectively. Earnings were also lower elsewhere, falling 39.5 percent in Britain, 17.2 percent in the United States and a more modest 4.1 percent in Latin America.

"I value Santander's diversification, but then again their home market is a real worry," Bloomberg quoted Peter Braendle of Swisscanto Asset Management as saying. Santander's share price closed down 3.4 percent.

The bank said it had borrowed 35 billion euros in long-term funds from the European Central Bank and had deposits with the ECB of 37 billion. It said it increased its exposure to Spanish public debt by 6-7 billion euros.

Chief Executive Alfredo Sáenz said Santander plans to speed up the sale of foreclosed properties this year and increase provisions for possible losses on its real estate assets.

Para poder comentar debes estar registrado en Eskup y haber iniciado sesión

Darse de alta ¿Por qué darse de alta?

Otras noticias

Avatar
Journalist at El País English Edition

LATIN AMERICA

Mexico’s Supreme Court quashes referendums on energy reform

Leftist forces vow to keep fighting and will take their case to a regional tribunal

“We can’t negotiate over suffering; we want our children back alive”

Parents of missing Iguala students call on Mexican president to find their loved ones

Falling oil price puts Mexico on alert

Jan Martínez Ahrens Mexico City

Lower profit margins making expensive projects less desirable for foreign investors

“We are not a populist government”

In this exclusive interview with EL PAÍS, Chilean president Michelle Bachelet discusses her far-reaching reforms

Lo más visto en...

» Top 50

Webs de PRISA

cerrar ventana