Additional needs -New rules on real estate assets-

RNS Number : 9268W

Banco Santander S.A.

07 February 2012

 

Press Release                                      

Santander must set aside EUR 2,300 million more due to the new rules on real estate assets

§ The rule requires EUR 4,100 million in additional provisions - of which EUR 1,800 million were charged against the 2011 results - and the maintenance of a EUR 2,000 capital buffer, which is already covered by existing capital.

Madrid, Feb. 7, 2012 -Regarding the new requirements approved by the government for the Spanish financial sector to boost provisions for real estate assets, Banco Santander announced that the amount Grupo Santander in Spain (including Banesto) needs to meet these requirements is EUR 6,100 million.

These additional needs will be entirely met in 2012 as follows:

-     EUR 1,800 million already charged against the Group's fourth quarter 2011 results.

-     EUR 2,000 million are a capital buffer required by the rules and which are covered by capital already held by the Group.

-     The remaining EUR 2,300 million will be covered through capital gains which may be obtained during the year - including EUR 900 million from the capital gain on the sale of Banco Santander Colombia - and through ordinary contributions to provisions during 2012.

AMOUNT OF PROVISIONS	EUR mln
Additional provisions for the new rules as of 31/12/2011	6,100
Charged to 2011 results	-1,800
Buffer covered by existing capital	-2,000
To be provisioned	=2,300
FUNDING THE NEW PROVISIONS	2,300
To be charged against capital gains from the sale of Santander Colombia	900
To be charged against other capital gains and ordinary provisions in 2012	1,400

 

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