Three Spanish banks put aside billions for new property losses
SPAIN’S banks will put aside at least €10bn (£8bn) to absorb new losses on a legacy of toxic real estate loans, three of the country’s largest lenders have said.
Santander, CaixaBank and Bankia, which is set to be nationalised, all said yesterday that they will make provisions worth billions in response to tougher requirements unveiled by Spain’s government on Friday.
Santander will put aside €2.7bn, the bank said, in addition to the €2.3bn it has already earmarked to take losses. It said the move would not affect its capital cushion.
CaixaBank said it will save €2.1bn for losses, while Bankia is making the largest provision at €4.7bn. The new rules on provisioning for losses are meant to shore up confidence in the country’s banks.