Banco Santander’s second-quarter profit sharply undershoots expectations Thursday as the Spanish banking giant sets aside almost all of its earnings as provisions against real-estate losses in its home market.
Santander’s shares closed Wednesday at €4.08 and are down 34% over the past year. Bank stocks tumbled in the months before Spain asked for €100 billion in aid to recapitalize its most troubled banks and have continued to fall in recent weeks on investor concerns that the country could need a full-scale bailout.
Pleased I bought a few last month and sold them. Obviously the dividend has to be demolished. What are the shares worth -well earnings are still from other sources and some time these losses will wither -but how long. Will BVVA be similarly affected ? Banco Popular is up to its neck in this -even so they have a lot of hard assets(land and part completed development ) on their books that one day will cease to be toxic -but time will say when ! The prospects for dividend income are under threat I think in Spain where there is dependancy on the domestic economy. How much the utilities will be able to pay will be affected by reduced demand and maybe some losses although they do get this this wretched potencia charge as long perhaps there are not squatters !
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