Santander: We won't need extra cash to meet EU demands

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Santander, the eurozone's biggest bank, said a significant charge for mis-selling payment protection insurance(PPI) hit profits in Q3, but its capital cushion would lift it out of danger territory.

The bank insisted its 9.2% ratio of Tier 1 capital meant it would not need to raise extra money to meet European Banking Authority demands, the Times reports. It is now seeking to raise this to 10% next year. The European regulator has said Santander needs €15bn to protect its operations in the case of a credit freeze, but the bank argues it can manage with €6.5bn. Santander also warned it expected bad loans in Spain to grow as unemployment and mortgage debt forced Spaniards to fall behind on repayments. "We see bad loans on the rise," Alfredo Sáenz, the chief executive, said. "I s...

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