Home Latest News Big bank earning 10.295 million by June

Big bank earning 10.295 million by June


this major Spanish banks -Santander, BBVA, CaixaBank, Sabadell and Bankinter and Unicaja- In the first half of the year, a joint profit of 10,295 million Euros was achieved.Overcome the coronavirus pandemic, but there are new clouds on the horizon in the form of taxes on banks.

If Unicaja, which is currently the fifth Spanish institution by asset volume after the merger with Liberbank, is excluded from the calculation, the benefit obtained does not exceed the one year ago, 11.127 million Euros, as the industry celebrates refocusing on dividend distribution, leaving the impact of COVID-19 behind.

The new tax will apply at a rate of 4.8% to their commissions and net interest, as outlined in the bill passed this Thursday by the PSOE and United We Can Congress, which says it will affect the results for 2022 and 2023.

The news, though not unexpected, shocked the industry, He said he was harshly critical of the measure and made no secret that he would use all the means at his disposal to avoid it.

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José Antonio Álvarez, CEO of Santander, made this clear. The industry already pays enough taxes and the benefits of a rise in interest rates are nothing ‘extraordinary’.and less years later zero and negative rates.

Santander posted a profit of 4,894 million euros between January and June 2022, 33% more than last year, thanks to revenue growth and reductions in provisions offsetting the impact of inflation.

However, Álvarez said during the presentation of the accounts for the period, “it is difficult to combat inflation with taxes”, “regardless of whom they affect”; The banker also expressed concern about the new “stigma” that all this entails for banking.

During the presentation of Bankinter’s results, CEO, María Dolores Dancausa, called the tax “ridiculous” as the sector is the one that pays the most for corporate tax.

Dancausa appealed to “common sense”without warning of the uncertainty created by such disclosures, which causes investors to turn their backs on the industry; Separation of investors – “not gentlemen with bowler hats and cigars” – could happen within minutes, but “takes years to recover,” he warned.

Between January and June, Bankinter earned 271 million euros, 11% more than the previous year, although it was unable to account for four months’ revenue from Direct Line in the first half of the year as in 2021, nor did it receive any capital gains from the insurance company’s IPO.

The bank is already paying taxes.

BBVA chairman Carlos Torres Vila was also very critical of the initiative, warning in an interview that in case of “uncertainty” it could “generate less consumption, investment and collections”; He said financial institutions already have “30 percent compared to 25 percent for the rest.”

Presenting its accounts this Friday, BBVA posted a net attributable profit of 3,001 million euros between January and June of this year, up 57.1% year-on-year due to higher revenue from business activity and lower provisions recorded.

Sabadell also referred to the ratio in the presentation of his accounts for the period, which he achieved with a return of 393 million euros, 78% more and 7%, and which he expects to maintain or even exceed at the end of the period. Without considering the impact of the new banking tax prepared by the government

CEO, César González-Bueno, spoke about the new tax, demanding it be “neutral” to competition and tax all corporations equally, regardless of size.

Same way, Pablo González, Unicaja’s financial director, spoke of the tax and the call for common sense, “The banking sector is one of the highest taxpayers in Spain, it is highly taxed and should be remembered when considering new taxes,” he said.

Unicaja Banco recorded a net profit of 165 million euros in the first half of the year, representing a 62% increase compared to the same period of 2021.

Also, announcing its semi-annual accounts this Friday, CaixaBank – net profit of 1,573 million euros, 62.4% less than the same period last year – will be affected by the new rate, though not yet clear. IT.

Source: Informacion



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