Spain's Banco Santander said its net profit for the second quarter jumped to €1.1 billion from €123m for the same time last year thanks mainly to lower provisions for bad property loans.

Santander, like many Spanish banks, had to write off huge amounts from the value of loans following the 2008 collapse of Spain's property market.

The largest bank in the euro zone by market value said, however, the ratio of non-performing loans to its overall portfolio rose slightly, to 5.18% from 4.76% in March.

The bank's net profit for the first six months of the year was €2.26 billion, up 29% on the same time in 2012.