santander profits

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This topic contains 4 replies, has 3 voices, and was last updated by Profile photo of Anonymous Anonymous 4 years, 10 months ago.

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  • #56510
    Profile photo of Anonymous
    Anonymous
    Participant

    in Q4 of 2011 profits down 98% in order to protect themselves from spainish property.Is this a sign of things to come right across the spainish banking sector abit of truth of the real picture

  • #107779
    Profile photo of logan
    logan
    Participant

    At long last Spanish banks are being forced by the new government to reveal the true extent of their catastrophic property losses.
    I predict more mergers and fewer banks as a result.
    Some banks will require recapitalisation and the figure is estimated at up to €100bn.
    What does this mean for the future of the Spanish property market? Very little until recap takes place. Banks cannot afford to lend money at the moment and that’s a log jam preventing the market from moving forward.
    The other major obstacle is the government simply does not have the cash to do it.

  • #107781
    Profile photo of Anonymous
    Anonymous
    Participant

    i think this will start the slide of prices to the bottom then as cash ready buyers return to pick up the bargins then we may see some signs of a recovery in 2015,not of rising prices but of properties actually selling in larger numbers rather than the dribs and drabs we see at the moment

  • #107800
    Profile photo of logan
    logan
    Participant

    Welcome restructuring of Spanish banks announced yesterday by the finance minister will likely now accelerate mergers in the sector considerably. €50bn is a lot of money for the sector to raise and will likely burden them with further debt.
    I think this move is also an attempt to force the banks into selling off their massive property assets way below their current unrealistic levels. It will also have a useful knock on effect to the rest of the market depressing prices even further. In my view a further 20% devaluation is overdue to get the sector off it’s knees.
    Details here:
    http://www.ft.com/intl/cms/s/0/34a3a576-4dc7-11e1-a66e-00144feabdc0.html#axzz1lJ8qtlvS

    http://www.telegraph.co.uk/finance/financialcrisis/8993950/Spanish-banks-need-extra-50bn-to-cover-toxic-property.html

  • #107802
    Profile photo of Anonymous
    Anonymous
    Participant

    @logan wrote:

    In my view a further 20% devaluation is overdue to get the sector off it’s knees.
    l

    20% is just a good start.

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