Profits slump for Sabadell

Spanish bank Sabadell has reported 2011 net profit down 39 per cent on the year after taking €1bn (£835m) in provisions against deteriorating property assets.

Sabadell, which bought troubled savings bank CAM in December, said net profit was €232m, slightly lower than analysts’ forecasts. More loans fell into arrears as Spaniards, battling high unemployment and lacklustre economic growth, struggled to keep up with payments. Bad loans as a percentage of total lending rose to 5.95 per cent against 5.72 per cent at the end of September.