Chemistry Board

Spain's largest bank Santander expects profits to recover in 2013 after its non-performing loans ratio peaks in the first half of the year, Chairman Emilio Botin told UK financial magazine The Banker.

"In 2012, our profits will be down because we have made large extraordinary provisions for Spanish real estate loans," Botin said in an interview with The Banker this month.

"Santander will finish the extraordinary provisioning in 2012, ahead of most other banks, and we expect our Spanish non-performing loans to peak at about 7 percent in the first half of 2013. Profits will then start to rebound," he said.

Santander's Spanish bad loans ratio stood at 6.38 percent in the third quarter of 2012, well below the national average.

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