Sabadell agrees with optimism: sees no recession or real estate bubble

“This year flew by. It’s been a full year. bad macro news, but good news for the bank”, pointed out the CEO, César González-Buenoin assessing the evolution of the asset since it took the reins in early 2021, accompanied by new chief financial officer Leopoldo Alvear.

Both one and the other were responsible for highlighting Sabadell’s return during this time, and among other things, recurring margin growth 20.9% in business volume, thanks to improvement in revenue and 5.6% reduction in costs efficiency plan launch that it hopes to reach some this year 110 million savings euro. And then cut the template by 22% in the last year and a half. In this regard, the executive has not made any further workforce regulation in the near future.

However, beyond the specific situation of the bank, those responsible for Sabadell do not take into account the deterioration in the economic situation created by the bank. ukraine war and inflation It can be worrying. So they insisted “contextualize” We reminded that the impact of the conflict and the predictions show nonetheless. Spain’s economy will grow between 4.5% and 5% this year, which is still a very significant number, so they don’t see a significant increase in delinquency.

head and tail winds

González-Bueno insisted that inflation would cause “headwinds and tailwinds” for the side. In other words, besides some negative consequences such as cooling of demand, interest increases. Realizing this, Sabadell’s CEO of the bank said, “We don’t want extreme rates, but we don’t want negative rates like we’ve had in recent years, because that disrupts the practice of borrowing and lending in banking.” is one of the organizations that previously transferred this increase in money cost to their offers.

Along the same lines, the financial director of the organization stated that as prices improve, the ECB’s rate hikes will come sooner or later, They are already discounting that there will be one during the summer and another before the end of the year.

as for the results mortgagedAlvear sees no major risks that this rise will result in a substantial increase in defaults. On the one hand, most of the portfolio old mortgages – before the bubble burst – these are already in an advanced stage of amortization, and on the other hand, because a lot has happened in loans in recent years. with stricter risk criteria. In this way, Sabadell’s CEO has insisted on ruling out a potential real estate bubble, despite the Bank of Spain’s warnings a few days ago that more vigilance is needed on the sector. “No bubbles, “prices are also not skyrocketing, and the level of indebtedness has nothing to do with what existed before,” he said.

González-Bueno also evaluated positively measures adopted by different governments Even if they don’t want to make any assessments to deal with inflation as they did in the face of the Covid crisis. With regard to ICOs, the bank points out that only 8% of the portfolio is classified as suspicious, and over 80% of that figure is subjectively in this state, meaning there have been no incidents.

job in Alicante

On the other hand, the entity also reported on the evolution of its business in the province of Alicante in the first quarter of the year. mortgage. The bank approved 945 operations in the first half of the year for 99.3 million euros, representing a 19% increase. Also, as a whole, new financing to companies and individuals in the region totaled €1,140 million, 12% more.

business is growing insureris closely linked to the increase in mortgage contracts. The business closed the quarter with 178,963 customers paying premiums of €200.2 million, up 23.2% year-on-year.

On the other hand, the intake new customers it was also on the rise, with 1,353 companies opening accounts at 7,218 new individuals and organizations. Turnover – sum of customer deposits and loans