Coronavirus crisis sours €8bn of Santander’s loans
Loans moved into IFRS 9 stage two to reflect significant increase in credit risks
Banco Santander said the economic downturn unleashed by the coronavirus pandemic caused €8 billion ($9.4 billion) of loans to deteriorate in credit quality over the three months to end-June.
The Spanish lender said credit exposures subject to IFRS 9 loan-loss accounting rules amounted to €972 billion in Q2. Of these, €61 billion were classified as stage two, meaning they had experienced a significant increase in credit risk since initial recognition, up from €53 billion in Q1.
Stage three
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