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Santander Q4 Underlying Profit Down - Quick Facts

Spanish Financial Group Banco Santander S.A. (BNC.L,BSBR,SAN) reported that its fourth quarter underlying profit was 1.42 billion euros, down 18% year-on-year in constant euros due primarily to the increase in loan-loss provisions.

Attributable profit for the fourth quarter was 277 million euros, heavily impacted by restructuring costs, mainly in Spain.

Following the 12.600 billion euros non-cash goodwill/deferred tax asset impairment announced in the second quarter, the bank took on further charges of 1.15 billion euros in the fourth quarter mainly due to restructuring in Europe.

The company reported a loss attributable to the parent was 8.77 billion euros or 0.538 euros per share in 2020, compared to a profit of 6.52 billion euros or 0.346 euros per share in 2019.

In the year, Grupo Santander's results were affected by the health crisis caused by the spread of covid-19, which is reflected in a weaker economic environment, lower interest rates and a sharp depreciation of some currencies.

Revenue was 44.28 billion euros in 2020, down 10%. If the FX impact is taken out, total income remained resilient, in line with last year, due to the strength that our geographical and business diversification provides.

The company plans to pay a further €2.75 cents per share in cash to shareholders against 2020, following the distribution of new shares equivalent to 0.10 euros per share made in November.

The company said its intention is to restore a payout of 40-50% of the underlying profit, in cash, in the medium term. With respect to the remuneration against the 2021 earnings, the intention is to resume payments once the European Central Bank recommendations so allow, in line with the announcement of April 2020.

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