Santander reports 21.2% profit slump on British provision

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Spanish banking giant Santander on Wednesday reported a 21.2-percent slump in first-half net profits to 3.501 billion euros ($5.075 ) after setting up a special 620-million-euro

fund in Britain

The fund is to cover any eventual claims over payment protection insurance wrongly sold in Britain, the bank said.

For the second quarter alone, net profits were 1.393 billion euros, a sharp fall of 37.5 percent from the figure 12 months earlier.

The figures were far lower than market expections. Five analysts polled by DowJones Newswires had predicted 2.07 billion, having clearly not anticipated the effect of the exceptional measure.

Growth continued to be driven by activities in Latin America where net profit for the first half rose by 16.0 percent to 2.457 billion euros and accounted for 44 percent of the overall outcome of which 25 percent alone came from businesss in Brazil.

© 2011 AFP

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