Barclays Bank’s profits have slumped 25% to a mere £793 million mainly due to a drop in revenue from its investment banking business.
But never fear, Santander’s profits are roaring ahead, mainly due to the deal it did when buying Banif for less than the value of the bank’s tax credits.
In a communication to the Spanish regulator, Santander pointed out that "the assigned first-quarter profit is €121 million, more than double that obtained to March 2015” and points out "the positive impact over the whole of the merger of Banif’s" which Santander bought last year for about €150 million, significantly less than Banif’s tax credits which accompanied the failed lender.
Santander in Portugal made a gross profit of €337 million in the first quarter (41.5% up on last year) with a net profit of €183 million (up 59.6%).
Santander’s overall deposits increased too, up 22% to €30.6 billion, "mainly due to the incorporation of Banif’s deposits".
Portugal accounted for 6% of Santander’s €1.630 billion profits in the first quarter the year.
The Banif fiasco, one of many hastily agreed deals by Bank of Portugal governor Carlos Costa in 2015, leaves the taxpayer exposed to a maximum of €4 billion in unquantifiable liabilities.
