In the year, Grupo Santander's results were affected by the health crisis caused by the spread of covid-19, which is reflected in a weaker economic environment, lower interest rates and a sharp depreciation of some currencies.
As a result of the worsening economic outlook, adjustments to the goodwill ascribed to some units and to deferred tax assets were made in the second quarter totalling EUR 12,600 million. As a result, the Group's attributable profit in 2020 was negative EUR 8,771 million.
Excluding the above adjustments and restructuring costs, underlying attributable profit was EUR 5,081 million, 38% lower than in 2019 (-29% excluding the exchange rate impact), with net operating income of EUR 23,633 million, 2% more without exchange rate impact than in 2019.
Total income was broadly stable, excluding the exchange rate impact, as the decrease in activity and lower interest rates were offset by higher volumes and the lower cost of deposits.
Cost reduction through productivity improvement in recent years, along with additional savings measures adopted since the start of the crisis. This was reflected in the fall in real terms in the majority of our markets.
Greater loan-loss provisions due to credit growth and additional provisions made relating to the pandemic. Cost of credit ended the year at 1.28%, in line with our expectations.
