Impairment losses on financial assets, at a cumulative €3,267m in the first half of 2012, include a charge owed to the impairment of assets related to the real estate business in Spain. Thus, at the close of the first semester of 2012, the Group has booked provisions for €1,434m, approximately one third of the required amount by Royal Decree Laws 02/2012 and 18/2012.
Provisions, which basically cover early retirement, other allocations to pension funds and provisions for contingent liabilities, amounted to €230m, a year-on-year decrease of 1.8%.
Finally, the heading other gains (losses) reported a negative €533m and includes part of the provisions made for real estate and foreclosed or acquired assets in Spain.
This quarter shows a low tax charge due basically to lower NTI from markets, revenue with a low or no tax rate (mainly dividends and income by the equity method) and the growing weight of earnings from Mexico, South America and Turkey, where effective tax rates are low.
