Net attributable profit for the first six month declined by 51% to €1.7bn compared to a net profit of €3.5bn during the same period last year, mainly attributed by a €1.3bn in provisions against real estate loans in its domestic market.
Net interest income grew by 8.4% over the period to €15.5bn, while revenues rose by 5.3% to €22.5bn and absorbed costs of €10.bn, up by 5.1% compared to the same period last year.
Banco Santander Chairman Emilio BotÃn said, "The first half results make us one of the most solid and efficient banks in the world and show we are able to increase revenues and keep costs under control even in a difficult environment. The provisions we are making will allow us to put real estate write-offs in Spain behind us by the end of this year."
The bank’s Latin America and Continental Europe operations yielded strong revenue growth and the performance in Spain stood out.
For the first six months ended 30 June, Santander’s posted net operating income of €12.5bn, up by 10.2% more than the second half of 2011.
Latin America contributes 50% of profits – Brazil makes up 26%, Mexico 12% and Chile 6%. Continental Europe accounts for 27%, of which Spain represents 14%, Germany 5% and Poland 4%, while the UK brings in 13% and the US 10%.
The Spanish government has been forced to accept a €100bn eurozone financial aid to keep floating its troubled banks, although the bank denied to accept bailout and said that it can meet all the regulatory compliance and financial needs from its own sources.
