The numbers of Santander, which ended 2012 with net profit of 2,205 billion euros, down by 59% compared to 2011. I revenues instead they rose to 30,1 billion euros, +3,6% on an annual basis. In the fourth quarter, profit increased to 401 million, against 47 million recorded in the same period of the previous year. However, market estimates were for a profit of 801,6 million.
The leading Spanish banking group (number one in the Eurozone by capitalization) explains that the decline in profitability in 2012 was caused by provisions of 18,8 billion for potential losses on the Iberian real estate mortgage sector.
“We expect a sharp increase in earnings in 2013, given that the extraordinary measures on non-performing items will have been completed,” said the Bank's president, Emilio Botin.
Excluding the provisions recorded to cover assets at risk, the net result would have improved by 2% to 23,56 billion. Santander's bad debt rate recorded in 2012 was 4,54%, against 3,89% the previous year. In Spain this ratio is higher on average: 6,74% and 5,49% respectively.
All projects Madrid Stock Exchange Banco Santander shares slip 2% mid-morning.
