Spain's Santander bank expects 'magnificent' profits
The head of the biggest Spanish bank Santander said on Monday that he expected to report "magnificent" results for 2008.
MADRID—Bank president Emilio Botin told an extraordinary meeting of shareholders to approve a capital increase to finance the acquisition of US bank Sovereign that the results would be among the best in the world.
Until now, Santander bank has forecast a record net profit of 10 billion euros (12.9 billion dollars) for 2008 but Botin did not mention this figure.
At a time when many top banks around the world are in deep trouble and worth only a fraction of their capitalisation two years ago, Botin said that Santander was "optimistic" about the years ahead.
Its shareholders met to approve an increase in capital of 2.2 percent to buy Sovereign Corp. bank, as announced in October.
Since the financial crisis began, Santander appeared to be a rock within the banking sector and it made several takeovers.
But its image was tarnished by the Madoff financial fraud scandal in the United States when it revealed that its customers were exposed to the extent of 2.3 billion euros.