Santander and Deutsche Bank post losses as coronavirus bites Europe's top banks

Two of Europe's largest lenders clocked up losses today as the full affect of coronavirus was exposed across the sector.

Santander suffered a record loss of €11.1 billion (£10 billion) after the bank was forced into taking large writedowns. Santander’s core markets include Brazil and Spain, where the pandemic has hit the hardest.

The bank's UK arm was also hurt with the division posting a 74% slump in profit over the past six months. Profit fell to £147 million after the bank was forced to book £376 million in impairment charges.

Despite going through what chairwoman Ana Botin said was the “most challenging” six months in Santander’s history, the bank is still promising a dividend to its shareholders, around two million of which are in the UK, once the European Central Bank had lifted its ban.

She said: “The board is committed to applying a 100% cash dividend policy as soon as market conditions normalise, subject to regulatory approvals and guidance, and we have accrued capital this quarter to reflect this commitment.”

Germany's Deutsche Bank faired little better, recording a £69.9 million loss.