Thursday, January 31, 2013
Santander writes off â‚¬19bn as profits plunge
"The bank added that it had halved its net Spanish real estate exposure to 12.5 billion euros, after a push to sell a record 33,500 properties in the country which is in its second recession in five years". "Total provisions, which include the writedowns on real-estate, rose to 18.8 billion, with a 28 percent increase in money set aside for loans in arrears across the group" (= dodgy property loans). Telegraph says: "Spain last year won agreement for a rescue loan of up to â‚¬100bn from the eurozone to finance a banking sector clean-up. Four Spanish banks and a so-called bad bank that has taken over many risky loans have received â‚¬39.5bn so far from the European Union credit.