{"id":54462,"date":"2020-07-30T08:47:37","date_gmt":"2020-07-30T13:47:37","guid":{"rendered":"https:\/\/olduvai.ca\/?p=54462"},"modified":"2020-07-30T08:47:42","modified_gmt":"2020-07-30T13:47:42","slug":"confession-time-for-big-banks-in-europe-banco-santander-reports-12-7-billion-loss","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=54462","title":{"rendered":"Confession Time for Big Banks in Europe: Banco Santander Reports $12.7 Billion Loss"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/wolfstreet.com\/2020\/07\/29\/confession-time-for-big-banks-in-europe-banco-santander-reports-12-7-billion-loss\/\">Confession Time for Big Banks in Europe: Banco Santander Reports $12.7 Billion Loss<\/a><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Too-Big-To-Fail Santander is also&nbsp;<\/strong><strong>one of the Eurozone\u2019s worst capitalized banks.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Banco Santander, Spain\u2019s largest lender and one of the Eurozone\u2019s eight global systemically important banks (G-SIBs),&nbsp;<a href=\"https:\/\/www.santander.com\/content\/dam\/santander-com\/en\/documentos\/resultados-trimestrales\/2020\/2q\/rt-2t-2020-presentacion-resultados-en.pdf\">has posted<\/a>&nbsp;its first ever loss in 163 years of operations. And it was gargantuan. During the first half of the year, the bank racked up a loss of \u20ac10.8 billion ($12.7 billion).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The loss was caused by heavy provisions for expected loan losses. This quarter wiped out the equivalent of one-and-a-half years of the bank\u2019s global profits \u2014 in 2019, it posted total global profits of \u20ac6.5 billion, and in 2018 of \u20ac7.8 billion.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The losses were the result of a \u20ac2.5 billion charge related to the recoverability of tax deferred assets as well a \u20ac10.1 billion write-down on assets across a number of key overseas markets:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>In the UK<\/strong>: \u20ac6.1 billion write-down of \u201cgoodwill\u201d \u2014 amount overpaid for prior acquisitions, which included Abbey National and Alliance and Leicester. Santander already took a \u20ac1.5 billion write-down on the value of its UK business last year, blaming new regulations and the expected economic fallout from Brexit.<\/li><li><strong>In the US<\/strong>: \u20ac2.3 billion write-down for Santander Consumer USA, which specializes in consumer lending, particularly subprime lending, and these consumer loans are now particularly at risk.<\/li><li><strong>In Poland<\/strong>, its largest market in Eastern Europe: \u20ac1.2 billion goodwill impairments charge.<\/li><li><strong>In its consumer finance division<\/strong>, which is present in 15 markets: \u20ac477 million hit.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Santander\u2019s shares initially reacted to the news by slumping 5.8%. They then staged a partial recovery, only to slump again, ending the day down nearly 5%. Shares are down an eye-watering 45% this year, making it one of the continent\u2019s worst-performing large financial institutions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe past six months have been among the most challenging in our history,\u201d Santander\u2019s Chairwoman Ana Botin said in a statement. \u201cThe impact of the pandemic has tested us all.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Confession Time for Big Banks in Europe: Banco Santander Reports $12.7 Billion Loss Too-Big-To-Fail Santander is also&nbsp;one of the Eurozone\u2019s worst capitalized banks. Banco Santander, Spain\u2019s largest lender and one of the Eurozone\u2019s eight global systemically important banks (G-SIBs),&nbsp;has posted&nbsp;its first ever loss in 163 years of operations. And it was gargantuan. During the first [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[8814,27230,802,4255],"class_list":["post-54462","post","type-post","status-publish","format-standard","hentry","category-economics","tag-european-banks","tag-nick-corbishley","tag-too-big-to-fail","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54462","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=54462"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54462\/revisions"}],"predecessor-version":[{"id":54463,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54462\/revisions\/54463"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=54462"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=54462"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=54462"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}