Santander Takes Europe’s Biggest Provisions for Coronavirus

  • Expected virus credit losses alone total 1.6 billion euros
  • Bank’s total provisions jump to a record 3.9 billion euros
Watch: Jose Garcia Cantera, chief financial officer at Banco Santander SA, discusses provisioning for the coronavirus pandemic and the survival rate of Spain’s small and medium-sized businesses. (Source: Bloomberg)
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Banco Santander SA reported the highest provisions by a bank in continental Europe so far this quarter as it attempted to put a number on potential loan losses caused by the coronavirus outbreak.

Santander is holding back 1.6 billion euros ($1.7 billion) specifically for losses linked to the virus. Total provisions jumped to a record 3.9 billion euros in the first quarter, causing net income to plunge 82% to 331 million euros, the bank said in a statement.