Santander's 2012 net profit down 59% on 2011

1 February 2013

Santander saw its net profit decline markedly in 2012 when compared to one year previously, new figures have shown.

Official statistics published by the large Spanish bank yesterday (31 January) showed that the group registered a net profit of €2.2 billion ($2.9 billion) for last year.

This represents a fall of some 59 per cent on the figure recorded in 2011 and the financier attributed this contraction primarily to the ongoing economic problems both domestically and overseas.

While unveiling the results in Madrid, Santander chairman Emilio Botin said the "extraordinarily high special provisions and write-downs carried out in Spain" - which totaled some €6.1 billion - were to blame.

The bank's ordinary profit level stood at €5.2 billion for the year, while its capital gains sum of €1.06 billion was mainly due to the reinsurance of its Spanish and Portuguese life insurance portfolios and the sale of its Colombian unit, Mr Botin explained.

By Tony Aynsley

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