Provisions of real estate assets

RNS Number : 2303D

Banco Santander S.A.

13 May 2012

 

Press Release                                      

                                              

Santander will set aside

EUR 2.700 billion to comply

with decree-law 18/2012 on provisioning of real estate assets

■    These provisions, along with the EUR 2.300 billion pending under the decree-law passed in February, come to EUR 5.000 billion before tax, which will be fully absorbed in the 2012 results.

■    The after-tax impact on results of applying the two decree-laws passed in February and May will be EUR 2.900 billion, after taking into account the provisions of EUR 900 million which will be made with the capital gains from the sale of Santander Colombia.

■    These provisions will not affect Santander's current capital ratios and Santander maintains its commitment to remunerate shareholders EUR 0.60 a share for 2012.

Madrid, May 13, 2012 - Banco Santander announces that the amount required for Grupo Santander in Spain (including Banesto) to comply with royal decree-law 18/2012 of May 11 will be EUR 2.700 billion before taxes, according to the bank's initial assessments.

These charges are in addition to the provisions already required by the decree-law 2/2012 of February, of which EUR 2.300 billion of provisions before taxes are still pending, as stated in a filing sent to the CNMV on February 7. The provisions still pending, plus those required by the latest decree-law, amount to a total of EUR 5.000 billion in provisions before tax. These will be fully covered in 2012 and charged against capital gains and profits this year.

Last December, Santander agreed to sell its Colombian unit, and the capital gains generated by this sale will allow making provisions amounting to EUR 900 million. Moreover, after taking into account the tax impact of the charges, net outstanding provisions pending against the P&L account are EUR 2.900 billion. These charges will not affect the Group's current capital ratios.  

Santander maintains its commitment to remunerate shareholders EUR 0.60 a share for 2012.

 

END

 

 

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