six main Spanish banks Included in Ibex 35 (Santander, BBVA, CaixaBank, Sabadell, Bankinter and Unicaja Banco) In the first nine months of the year they earned a total of 19 billion 761 million euros, which is 23.4% more compared to the same period of the previous year (16,014.1 million euros). The ongoing rise of official interest rates in the euro area to 4.5% has inflated the accounts of banking institutions since this year. The big banks’ retained earnings came a week after PSOE and Sumar agreed to convert the banking tax from a temporary to a permanent tax. According to the banks’ own estimates, the six firms will pay more than 1.1 billion euros for the concept this year.
“The banking sector continues to increase its profits” increase in interest margin and higher commission income. This has led to most Spanish institutions returning to trading above pre-pandemic levels, and some even achieved the best results in their history,” says Joaquín Robles, analyst at brokerage XTB. But these conditions are not taken into account anyway. Therefore, the upside path may be increasingly limited: “Banking “The industry is one of the most vulnerable to uncertainty and we may see an increase in volatility in the coming months due to the evolution of geopolitical conflicts, inflation and central bank decisions, bond yields, oil prices or economic data,” he adds.
The slowdown in loan demand due to increased interest rates due to economic conditions in recent months may also affect the potential increase in defaults. At the same time, Deposits are falling due to low profitability offered and impacts on mitigating price increases. It is also necessary to take into account that the end of interest rate increases is approaching. The European Central Bank suspended official interest rate increases a week ago, following the footsteps of the US Federal Reserve, which halted the rise at the last monetary meeting. Therefore, increases in interest rates at banking institutions may stall as “banking institutions are forced to offer higher fees on deposits to avoid runs.”
Santander Recorded attributable net profit of 8.143 million TL11.3% more than in the same period of the previous year. This is the best result achieved in the first three quarters of the year since its founding in 1857, thanks to central banks’ increase in interest rates. Spain remains the top profit-making market, where profits rose 68% to 1,854 million. The financial institution, led by Ana Botín, said that the result would have improved by 14% had it not been for the banking tax in Spain, which cost it $224 million. Its CEO, Héctor Grisi, stated during the presentation of quarterly accounts that he rejected the tax on the grounds that it was “discriminatory” and stigmatized the industry compared to other types of companies that did not have to pay it. The Mexican businessman took the opportunity to offer new customers the introduction of charging for current accounts to compete with the strategy of Sabadell, who relaunched his online account with an unspecified fee of 2%.
happened at the same timeThe best result of the first nine months of the year Bankinter excludes 2021, when the organization earned €1,250 million from the €900 million capital gain recorded after the sale of Línea Directa. The organization achieved attributable net profit of €685 million between January and September 2023; This was an increase of 59.2% compared to the same period in the previous year. In this case, Bankinter paid 77.5 million euros in banking tax; This dispute was taken to court by the company and taken to the National Court. “The institution’s greater activity and the higher interest rate environment have brought improvements in all account margins and all ratios (profitability, capital and financial),” the bank said in a note to the National Securities Market Commission (CNMV).
In parallel with its competitors, Sabadell Bank Earned 1 billion 28 million euros in the first nine months of 202344.9% and an amount greater than the total annual profit of any year since its founding in 1881. The company’s CEO, César González Bueno, argued that “these are not excessive profits because they do not adequately compensate for the capital.” and showed his opposition to the agreement between PSOE and Sumar to extend the Code of Good Practice to help mortgage holders in distress: “Very clear guidelines are only needed when our interests and those of customers differ, but this case”.
For your part, CaixaBank He earned 3 billion 659 million euros between January and September, 48.2% more than 2.469 million in the same period last year. The organization earned 16.3% more revenue in nine months compared to the whole of 2022, when it earned 3.145 million in revenue. The fact that CaixaBank paid 373 million euros for banking tax caused the increase in total income to decrease to 28.9%. “Financial soundness and reasonable profitability will allow CaixaBank to offer adequate remuneration to its shareholders, especially the La Caixa Foundation and the State, through FROB, to maintain its commitment to supporting the economy, families and companies, and to develop its social activities.” function”, he defended the asset owned by the State.
BBVA earned 5 billion 961 million euros in revenue in the January-September period of this yearA record profit was achieved, exceeding the figure achieved in 2022 by 24.3%, thanks to the power of permanent income due to the increase in interest rates. The bank also announced its third quarter result; While its net profit increased by 13.4%, reaching 2 billion 83 million, earnings per share increased by 17.8%, thanks to its securities repurchase programs.
Unicaja Banco, the last institution to join Ibex 35 Net profit of 282 million euros between January and September 20234.9% more than in 2022. The bank paid 63.8 million for the impact of the banking tax; If this had not happened, its net profit would have reached 349 million (28.4% more than in the same period in the previous year). Unicaja Banco’s result is explained by a 25.4% increase in annual interest margin and a 1.6% increase in net commissions, as well as other factors such as an increase in normal income and a decrease in personnel expenses (4.9%). 12.8% decrease in lower credit losses.
Record results in 2023
Related news
Considering the latest figures submitted by banks between January and September, banking institutions New snow record for the end of the year. HE SantanderFor example, it predicts that it will close in 2023 15% or higher return on tangible capital, unless a new source of instability emerges that will negatively change their calculations. In this way, its annual results will be between 10,900 and 11,000 million euros, compared to the 9,605 million euros recorded in 2022.
SabadellIf it continues like this, it estimates that it will close the year 2023 with a record. 11.5% return on tangible capital and a profit of nearly 1,300 million, well above the 859 million in 2022 and the highest result to date (908.39 million was achieved in 2006 in the middle of the real estate bubble). AND CaixaBank I think you can Approaching the historical maximum of 5.226 million reached in 2021 It was achieved by purchasing Bankia at a price lower than its book value (without this factor the recurring result for the year would have been 2,359 million).