MADRID, April 8 Spain's Santander on
Monday said its 2012 net profit, hammered by rotten property
assets, would have been marginally higher than previously stated
when factoring in changes in accounting methodology to take
effect this year.
The bank, the biggest in the euro zone, will have to include
some employee-related costs upfront in its 2013 accounts under
the new rules rather than deferring some as it did previously.
It will also change how it presents results for its Spanish
business to account for the full integration of subsidiary
Banesto, creating a Spanish section which previously did not
Santander on Monday adjusted its 2012 and 2011 accounts to
reflect the changes.
It said last year's profit would have been 2.295 billion
euros ($2.99 billion), up from a previously reported 2.205
billion euros reported Jan. 31.
Santander's 2011 net profit would have dropped slightly from
5.351 billion euros to 5.33 billion euros.
The changes soften the blow from steep government-enforced
provisions on property assets in 2012, five years after a real
estate market crash which pushed Santander's net profit down 59
percent from 2011 to 2012.
Under the accounting changes, the drop would have been
closer to 57 percent.
Santander said it would have had 3 billion euros less equity
- taking net equity down to 81.3 billion euros - at the end of
2012 under the new rules. ($1 = 0.7679 euros)