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Banco Santander recorded an attributable loss of 10,798 million euros in the first half of this year after registering an update of the goodwill of its historical investments and deferred tax assets (DTAs), which generates an extraordinary charge without effect on box of 12.6 billion euros . Until now the bank had not recorded losses.

This adjustment is due to the deterioration of the economic outlook as a consequence of the Covid-19 crisis and does not affect liquidity, credit risk or the CET1 capital ratio, as reported by the entity, which intends that a dividend corresponding to 2019 is paid in new shares equivalent to 0.10 euros per share.

Specifically, the CET1 capital ratio increased 26 basis points in the second quarter, to 11.84%, and is already at the high end of the 11-12% target.

"Although the attributable profit has been affected by the non-cash accounting update of goodwill and DTAs due to the impact of the pandemic on economic forecasts, this revision does not affect the strength of our balance sheet", The president of Banco Santander, Ana Botín, has stated.

Banco Santander obtained an ordinary profit of 1,908 million euros in the first half of 2020, 48% less than in the same period of the previous year, due to higher provisions related to the covid-19 pandemic.

Although the pandemic has affected activity, the entity has highlighted that it maintains a good ordinary result thanks to customer revenues , a reduction in costs above expectations, a "solid" credit quality and organic capital generation. "The last six months have presented us with one of the greatest challenges in our history.

"The impact of the pandemic has put us all to the test and I am very proud of the response that the bank has given ," said Botín, who stressed that the strength of the entity's model allows it to obtain "a good result, with capital increase, cost reduction faster than expected and good credit quality ".

He also added that the bank's business foundations are "solid, with a capital level at the top of its target."

Based on the "strength" of ordinary results, the board of directors plans to propose the payment of a dividend corresponding to 2019 in 'scrip' equivalent to 0.10 euros per share that would be paid this year.

"The board intends to apply a 100% cash dividend policy as soon as market conditions are normalized, subject to recommendation and regulatory approvals, and we have reserved capital this quarter to be able to do so," he explained.

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