Banco Espanol de Credito (Banesto), said that it has recorded 95 per cent fall in its net profit for fourth quarter previous fiscal.

Banesto, Spain's fourth-biggest bank by market capitalization and managed by global giant Banco Santander, posted a net profit of only EUR6.2 million in the last three months of 2009, which is nowhere near to the net profit of EUR126 million in 2008. However, analysts had estimated EUR12.5 million net profits.

The bank has put aside funds of EUR100 million for supposed voluntary provisions during the period to cover potential loan losses over the next two years.

In addition, bank’s net interest income lifted 6.7% to EUR425.6 million. Net interest income is the difference of bank’s earning on loans and its payment for deposits.

Market observers watched Banesto's results very closely as it provided the first indication about the health of listed banks working in Spain.