Their payout is equivalent to what they’ll pay during the year, but these companies paid in full in the first quarter. The European Central Bank’s increase in interest rates allowed banks to extend the loan they requested for their loans. However, some organizations, such as Unicaja or Banco Sabadell, which record most of their activities in Spain, found that their results for the first quarter of the year suffered more than those that were more internationalized and other countries such as Santander or BBVA operate. The banks themselves estimated last February that they would face around 1,100 million euros in tax in 2023.
“In the case of Unicaja and Sabadell, The impact of the extraordinary tax is very clear, and it has impressed them even more as they do most of their activities in Spain.“, XTB house analyst Joaquín Robles says. Unicaja earned 34 million euros in the first three months of the year, which is 43.3% less than the same period last year. The government paid its tax and assured that it would pocket 98 million if it were not for the tax. Banco Sabadell for his part, he had a profit of 205 million between January and March, which corresponds to a decrease of 4% compared to the previous year. After paying 157 million in this concept, his profit would have been 69.4% more, or 361 million, if this were not taken into account.
“The results of the main banks are positive and went as expected by the market given the current rate hike environment. But the bank tax put a dent on these results by consuming some of the net profits generated,” says IG analyst Diego Morín. 800 million. “Banco Santander, who made 2,571 million profits, had to pay 224 million taxes, which is something similar to BBVA. . Banco Sabadell paid about 150 million”, explains Diego Morín.
In the case of BBVA, first-quarter profit reached 1,846 million to March, thanks to higher interest income in Mexico and Spain, which was 39.4% higher than in the same period last year. 225 million for the government’s extraordinary tax. Bankinter, on the other hand, earned 184.7 million by March.It paid 19.7% more than the same period of the previous year and 77 million for the extraordinary state tax.
banking turmoil
The financial turmoil in the USA after the bankruptcy of three banks and the acquisition of Credit Suisse in Switzerland by UBS They messed with the whole European bank to save him. Diego Morín says, “The uneasiness is an obstacle for the industry in general. We cannot ignore the fact that there will be no more bankruptcies due to the problems in the balance sheets of some organizations in the USA.” .
The bailout of First Republic Bank by JP Morgan following the bankruptcy of Silicon Valley Bank and Signature Bank in March brought fears of a contagion effect on the markets. “The results of the bank were good and generally expected.Joaquín Robles, also referring to the slowdown in the economy, says, “However, banking crises hinder adherence to these values.” “Lending has declined and banks will have to make provisions to face potential increases in defaults,” said analyst Joaquín Robles.
Despite everything, banks’ outlook for the coming months is positive. “Intermediary margins have increased and will increase further with the latest rate hikes. Also, corporations have already paid the extraordinary tax, so we are getting very good impressions in the coming months despite the volatility of banking problems. Óscar Martínez, Deputy Director of Portfolios at Norbolsa, is a value we love.” is finishing.