The Spaniard bank part of the Santander Group, the Santander Bank, the largest bank in the Euro Zone presented its earnings report for the first semester of the current year, and the result was shocking.
The earnings of the Santander Bank drop 51% in comparison with the same period of the last year. This was due to the absorbing of mortgage loses and bad debts, completing the 70% of the depreciations required by the new laws designed by the European regulators for the financial system.
According to the bank statement this effort in provisions will allow the bank to leave behind the real state risk restructuring in Spain this year. The analysts on the other hand were taken by surprise because they did not expect this decision for part of the bank so early in the year.
After this statement and the announcement of the ECB that they would do whatever it takes to preserve the Euro the share of the Santander Bank increased 10% at 4.48 Euros per share, recovering part of the loses of the value of the share in the last month, when the share lost 13% of its market value.