Santander profits fall, weighed down by loan provisions
Santander, Spain's biggest bank, said Thursday its third quarter net profit fell 26.4 percent to 1.635 billion euros as provisions for bad loans impacted on results.
The bank booked one-off provisions, or a precautionary reserve for loans turning sour, during the quarter of 472 million euros after taxes, as a result of changes in Bank of Spain regulations. it said.
Before these changes, profit for the third quarter was 2.107 billion euros (2.914 billion dollars), down 5.1 percent from the previous year.
Net interest income rose 8.4 percent to 7.40 billion euros.
BBVA, Spain's second-biggest bank, reported on Wednesday a 17.4-percent drop in quarterly net profit, also weighed down by loans provisions.
Spanish banks are struggling with an economic downturn in Spain, brought about by a collapse of the country's once booming property market which has led many developers and homeowners struggling to meet their loan payments.
Santander shares on the Madrid stock market rose 1.62 percent after the opening to 9.301 euros in a market that was down 0.12 percent.
© 2010 AFP