Santander profits tumble 94%

Spanish banking giant Santander has seen its profits tumble by more than 90% in the third quarter after bad property loans in Spain battered its books.

The group's net income fell to €100m (£81m) in the third quarter, well below consensus and down from €1.8bn in 2011. In the UK, where the bank has replaced Abbey National, profits also dropped sharply, down 21% to €337m in the three months to end of September. The bank said it has now fulfilled 95% of the real estate provisions imposed upon it by the Spanish government after an additional €5bn provision this quarter. The bursting of the Spanish property bubble is still taking its toll in a country struggling with a shrinking economy and 25% unemployment. The bank's shares dipped...