Santander profits collapse after assets write-down

Net profits at Banco Santander tumbled 94 per cent in the third quarter as Spain’s largest bank by assets wrote down more bad property assets at home, and earnings slowed in several key markets abroad.

Santander said it had now fulfilled 90 per cent of the total amount of real estate provisions imposed by the Spanish government on its lenders, with new provisions totalling €5 billion, taking its total coverage of problematic property loans to 65 per cent.

As Spain’s government considers requesting a European bailout, Alfredo Sáenz, chief executive, said a Spanish rescue request would be “viewed positively” by the bank.

Santander’s credit rating is at two notches above junk by Moody’s.

– Copyright The Financial Times Limited 2012