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

Brazil presidential hopefuls remain silent on abortion

With the election just days away, the tragedy of illegal procedures is failing to trigger public debate

Mexican army detains soldiers over massacre

Government had previously claimed Tlatlaya casualties were the result of skirmishes between military and criminals

The new Brazilian middle class: a decisive demographic in elections

Voters who climbed out of poverty will hold the key to the October 5 poll

Mexican drug gangs kidnapping bus passengers to turn them into hitmen

Cartels in Tamaulipas state are growing their ranks through forced recruitment

Lo más visto en...

» Top 50

Webs de PRISA

cerrar ventana