First half net profits at Santander’s Spanish
retail subsidiary, Banesto, fell 6.8% to €381.7m ($484.9m) from
€409.5m in the year-ago period, slightly ahead of analyst
forecasts.
Banesto said that despite “adverse conditions
for the banking business,” it had retuned a “quality “ set of
results.
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Banesto made extraordinary provisions of
€84.8m in the first half, up 57% from the first half of fiscal
2009, while the ratio of bad loans to total loans rose to 3.48%
from 2.32% over the same period.
Banesto said its efforts to strengthen its
capital position had paid off: its tier one capital ratio increased
to 8.99% of risk-weighted assets, up 74 basis points from a year
earlier.
Despite an increasingly competitive market for
retail deposits, Banesto succeeded in growing total retail
deposits, up 5.9% from a year ago to €58.6bn.
Banesto’s soccer-themed deposit account,
Depósito Selección, which offered customers an interest rate of 4%
in the event of Spain winning the FIFA World Cup – see Spanish World Cup win costs Banesto €10m –
attracted 80,300 new customers.
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