Spanish bank sees profits decline

Spain's Banco Santander saw its profit plunge 98% in the fourth quarter after the bank took a €1.8bn charge to protect its Spanish property portfolio, and set aside cash to cover bad loans.

Europe’s largest bank by market capitalisation said today that it earned €47m for the quarter that ended in December, down from €2.1bn in the same period a year earlier.

Without the provision, the bank said it would have made a profit of €1.7bn in the fourth quarter.

Revenue for the quarter came in at €11bn, up from €10.6bn a year earlier.

Loans were up 4% for all of 2011 as Banco Santander boosted business in Latin America which helped buffer decreasing European operations.