MADRID, Jan 14 (Reuters) - Spanish retail bank Banesto posted a 28.2 percent drop in 2009 net profit on Thursday, missing forecasts, as it ramped up provisions against bad loans during a prolonged recession.
Banesto, 88 percent-owned by the euro zone's largest bank Santander said it set aside for provisions all capital gains booked in 2009, as well as an additional 377 million euros ($548.2 million), primarily to offset sliding property values.
Spain's property sector is in a steep downturn after a decade-long boom and many of the country's banks have accepted property from struggling real estate developers who would otherwise have gone bankrupt.
Banesto said it also boosted its provision cushion by a further 100 million euros in the fourth quarter.
Net profit dropped to 559.8 mln euros in 2009, missing a Reuters forecast for 577.2 million, while net interest revenue rose 9.6 percent to 1.73 billion.
Bad loans as a percentage of total lending rose to 2.94 percent at end-December from 2.59 percent at end-September, in line with analysts forecasts for between 2.89 and 3.0 percent.
($1=.6877 Euro)
(Reporting by Judy MacInnes; Editing by Hans Peters) Keywords: BANESTO RESULTS/ (judith.macinnes@thomsonreuters.com; 34 91 585 8340; Reuters Messaging: judith.macinnes.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Banesto, 88 percent-owned by the euro zone's largest bank Santander said it set aside for provisions all capital gains booked in 2009, as well as an additional 377 million euros ($548.2 million), primarily to offset sliding property values.
Spain's property sector is in a steep downturn after a decade-long boom and many of the country's banks have accepted property from struggling real estate developers who would otherwise have gone bankrupt.
Banesto said it also boosted its provision cushion by a further 100 million euros in the fourth quarter.
Net profit dropped to 559.8 mln euros in 2009, missing a Reuters forecast for 577.2 million, while net interest revenue rose 9.6 percent to 1.73 billion.
Bad loans as a percentage of total lending rose to 2.94 percent at end-December from 2.59 percent at end-September, in line with analysts forecasts for between 2.89 and 3.0 percent.
($1=.6877 Euro)
(Reporting by Judy MacInnes; Editing by Hans Peters) Keywords: BANESTO RESULTS/ (judith.macinnes@thomsonreuters.com; 34 91 585 8340; Reuters Messaging: judith.macinnes.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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