By Matthew Roscoe • 03 February 2021 • 11:14
Banco Santander Lost €8,771m in 2020 Impacted by Goodwill Adjustments.
BANCO SANTANDER has reported an €8,771 million loss for 2020, a figure highly impacted by the adjustments to the goodwill of its historical investments and deferred tax assets, which amounted to 12.6 billion in the second quarter. Added to the restructuring costs of the last period of the year.
However, without these extraordinary circumstances, the bank would have actually been 5,081 million up, although 38 per cent down year-on-year, due to the provisions derived from the pandemic.
The banking industry has suffered the biggest crisis in 85 years due to the pandemic and has seen the profitability of the banking union brought down even more and has forced banks to hedge against the crisis. And, the bigger the size, the bigger the endowments.
For example, this past year the group made provisions for bad debts of €12,173 million, which represents an increase of 31 per cent in year-on-year terms.
Likewise, beyond the goodwill adjustments, Santander halted its particular recovery of profits in the fourth quarter due to restructuring costs of 1,146 million, which led to profits falling to 277 million, compared to 1,750 million in the immediately preceding period.
Despite the loss, the bank’s president Ana Botín has shown her satisfaction with “the resilience and strength” shown by the business model and structure of the entity, stating: “Although the crisis is global, our geographic and business diversification has worked once again and highlights the strength of our team and our model. The results in America have been good and global businesses have grown at a good pace, which has allowed us to face a more difficult environment in Europe,” she explained in a statement.
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Originally from the UK, Matthew is based on the Costa Blanca and is a web reporter for The Euro Weekly News covering international and Spanish national news. Got a news story you want to share? Then get in touch at firstname.lastname@example.org.
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