Banco Santander SA (SAN)

[Huggy Bear]

The explanation for the drop, from my reading of the 6-K, was bottom line dismal earnings, at least in the eyes of the general market that does not, in general, do much DD and tends to go with general market movement.

Grupo Santander registered net attributable profit of EUR 2,205 million in 2012, 59% less than in 2011. Ordinary profit was EUR 5,251 million, while capital gains came to EUR 1,065 million, mainly from the sale of the Colombian unit and the reinsurance of the Spanish and Portuguese life insurance portfolios. Profit for the year would have been EUR 6,315 million, but after setting aside a net EUR 4,110 million to cover real estate exposure in Spain, fell to EUR 2,205 million.

Banco Santander’s Chairman Emilio Botín said: “Profits reached a turning point in 2012. In 2013, with the exceptional write-offs behind us, we should see a marked increase in earnings, based on the group’s recurrent revenues and cost control.”