Spanish banking giant Santander reported on Wednesday a net loss of over €8.7 billion for 2020 due to restructuring costs and provisions set aside to cope with the coronavirus crisis. The results were in line with forecasts for a loss of around €8.65 billion from analysts polled by Factset.

In the fourth quarter alone, the bank achieved a profit of €277 million, well below the €526m expected by analysts.

In the fourth quarter alone, the bank achieved a profit of €277m, well below the €526m expected by analysts

Santander had recorded the first net loss of its history – €11.13 billion – during the first wave of the coronavirus pandemic in the second quarter of last year.

The dire outlook for the global economy forced the company to downgrade the value of several of its subsidiaries, particularly in the United Kingdom.

In addition, Banco Santander set aside more than €12 billion in 2020 in provisions to cover the risk of unpaid loans due to the virus crisis, up 47 per cent over the previous year.

“Although the crisis is global, our geographic and business diversification have once again served us well and underscored the strength of our team and mode,” executive chairman Ana Botin said in a statement.

Given the pandemic, she said vaccination was “the most important economic policy for 2021. “We will not let down our guard, but I define my view as one of realistic optimism. A successful roll out of the vaccine will act as a strong catalyst for economic recovery.”