Spanish banking giant Santander has seen its profits tumble by more than 90% in the third quarter after bad property loans in Spain battered its books.
The group's net income fell to €100m (£81m) in the third quarter, well below consensus and down from €1.8bn in 2011. In the UK, where the bank has replaced Abbey National, profits also dropped sharply, down 21% to €337m in the three months to end of September. The bank said it has now fulfilled 95% of the real estate provisions imposed upon it by the Spanish government after an additional €5bn provision this quarter. The bursting of the Spanish property bubble is still taking its toll in a country struggling with a shrinking economy and 25% unemployment. The bank's shares dipped...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
