This Spanish banks last January higher profitability your customers individuals because there are records, especially since the European Central Bank (AMB) And Bank of Spain they started measuring it January 2003. And what’s more, the profitability of Spanish businesses families it’s never been like this raised according to the average eurozone in the intervening twenty years. The Spanish financial sector, therefore, more benefits Because it takes advantage of the ECB’s rate hike, while delaying as much as possible to significantly increase the amount it pays for deposits strong increase what you claim for the mortgage.
In banking it is known as: customer difference whatever in between an average man is charged for this lend me and the average man reward your savings. It is always positive, because otherwise the work will be damaged and impracticable, but the more extensive, make more money presence of the customer. The ECB tightens its monetary policy. loan installments already given variables go up as stipulated in the contracts, as well as new loan prices It is also increasing as a reflection of the increase in Euribor (the rate at which banks lend to each other). Instead, the industry slow down increase repayment of deposittaking advantage of its extensive location, liquidity.
Considering the two rates that the central bank uses as a reference, difference between the average interest mortgage portfolio From Spanish banks to individuals (2.35%) and balance deposit term (0.23%) rose in January 2.12 points percentage, all-time high and the highest level since the ECB began measuring in January 2003 (2.03 points). If you just take new mortgage and deposit if hired in the first month of the year, the difference is even greater, another maximum 2.6 pointsbecause the type of these loans have risen 3.19% (highest level since August 2012), not only did the increase in deposit fall for the first time in a year, from 0.64% to 0.59%.
Spanish organizations, therefore, use especially above the European average Regarding the ECB rate hike. Profitability from household (2.12 points) practically twice from what they’ve accomplished In July (1.31 points), when the monetary authority started making money more expensive to combat the inflationary spiral. In the same period, differential average customer of banks eurozone barely rose from 0.51 to 0.63 until reaching 3.3 floors down Spanish level.
For this reason, the country’s institutions charge slightly more than Europeans for their loan portfolios. mortgages (2.35% – 1.97%)while paying the balance, deposit a significantly smaller species: approx. six times lower (0.23% – 1.34%). Same thing new operationsboth for housing purchases (3.19% – 3.1%) As with time deposits (0.59% – 1.64%). The result is that difference between profitability than banks Spaniards And Europeans take from homes never been this highneither in balance (1.49 points) nor in new production (1.14 points).
In the case of companiesin its place, it’s not the same. Average rate applied by Spanish banks loan portfolio companies in January. 2.93%only slightly higher than average currency union (2.8%). However, unlike households, deposit balance corporate in Spain (1.53%) was only slightly lower. eurozone (1.65%). This cost effectiveness Spanish banks obtained from companies 1.4 points only slightly higher than the rates. eurozone (1.15 points), This is below the all-time high (1.85 points in October 2014) and well below the level reached by families in January (2.12 points mentioned above).
HE differential element The Spanish bank therefore took longer than the European bank to increase the amount it pays for household deposits. This big bankers The majority of the country showed during the presentation of their annual results a few weeks ago that They will delay as much as possible. payment for the deposit and that in no case will be rise your species important or common. assets, therefore, when ECB rates were negative, they did not pass this on to their retail customers (which would force them to charge for the deposit). According to them this it was a loss they are now trying to compensate for this by increasing their profitability for their customers.
The problem with this argument is that carries the comparison badly with average behavior eurozone banking. In years when ECB ratios are negative ( June 2014 – July 2022), average type of new deposit to families in the eurozone 0.46% compared to 0.17% in spain. Well, European banks paid more more than the Spaniards at that time, and therefore they may now argue that they will have to. make up for a greater losshowever, it has increased deposit rates faster since the ECB began raising rates in July.
Moreover, the average interest of the new mortgage negative rates were higher in those years Spanish banking (1.93%) is in the middle eurozone (1.8%). As a result, the profitability of the Spanish sector from households (1.75 points) was higher than that of sectors in the eurozone (1.34), where it currently has less room to improve.
Spanish banking in a nutshell can afford not to pay for deposits high liquidity who provided ECB injections Pandemic and weight gain loan deposit After the housing bubble burst. But he chose one unpopular strategy and with little comparison in Europe, no matter how hard it tries to get around it by placing its customers mutual funds on public debt (theoretically more profitable than deposits, but also with higher commissions).