Santander, Spain's biggest bank, said today that its third quarter net profit fell 26.4% to €1.635 billion as provisions for bad loans impacted on results.
The bank booked one-off provisions, or a precautionary reserve for loans turning sour, during the quarter of €472m after taxes, as a result of changes in Bank of Spain regulations.
Before these changes, profit for the third quarter was €2.107 billion, down 5.1% from the previous year. Net interest income rose 8.4% to €7.40 billion.
BBVA, Spain's second-biggest bank, yesterday reported a 17.4% drop in quarterly net profit, also weighed down by loans provisions.
Spanish banks are struggling with an economic downturn in Spain, brought about by a collapse of the country's once booming property market which has led many developers and homeowners struggling to meet their loan payments.
