In 2023 Abanca delivered a record profit of 711.3 million euros, tripling the 217 million euros earned the previous year. The result underscored a year marked by strong momentum in retail banking and a robust overall financial profile that allowed the lender to navigate a dynamic economic environment with confidence.
During a press briefing, Abanca’s president spoke about the solid governance framework and the resilience that economic conditions showed across the year. He noted that the favorable inflation trajectory and a stronger than expected GDP growth contributed to a stable operating climate, which in turn supported profitability and opportunities for sustainable employment across the bank’s markets.
Return on tangible equity stood at 16 percent, a level that signals that the bank’s capitalization could support ongoing business expansion even as funding costs rose due to market dynamics. The 16 percent ROTE also positioned Abanca favorably against its main peers in the sector, reinforcing the Bank’s competitive stance on profitability.
The group highlighted its disciplined risk management and sound asset quality as core strengths. Key indicators showed a healthy asset quality profile with a Texas-like risk rating around 27.5 percent, a controlled default rate near 2.4 percent, and a high level of coverage for doubtful assets at approximately 73.9 percent. The total capital ratio surpassed regulatory requirements at 16.9 percent, with a substantial capital buffer that supports ongoing lending and strategic investments. The retail loan-to-deposit ratio reached 84.9 percent, reflecting a balance that supports customer growth while maintaining resilience in funding streams.
Lending activity to households and businesses expanded in both Spain and Portugal, with loan growth of 14 percent in Spain and 15.3 percent in Portugal. The bank supported nearly 9.7 billion euros in new financing, reinforcing its role as a key financial partner for families and firms across southern Europe.
Abanca also emphasized its broader contribution to public finances through tax payments and other fiscal contributions, totaling around 400 million euros. This reflects the bank’s role as a critical partner to the communities it serves, supporting public services and local development through a diversified revenue footprint.
In 2023 Abanca completed a notable strategic acquisition, integrating Portugal’s EuroBic, which positioned the group as the seventh-largest bank operating in both Spain and Portugal. The integration reinforced cross border capabilities and broadened the bank’s footprint in Iberia. The prior year’s purchase of Targobank further sharpened the bank’s focus on retail banking, enabling a stronger presence in key regional markets such as Andalusia, the Levante, and the Balearic Islands. This expansion supported the bank’s retail strategy and enabled greater access to a wide customer base across diverse geographic areas, helping to diversify revenue streams and strengthen brand presence in core markets.
Throughout 2023 the organization maintained a clear emphasis on sustainable growth and prudent risk discipline, ensuring that the bank remains well-positioned to meet evolving customer needs while maintaining resilience in the face of macroeconomic headwinds. The results reflect a combination of steady customer activity, a favorable macro backdrop, and a disciplined approach to capital and risk management that supports long term financial strength. The company continues to pursue a balanced mix of prudent lending, responsible funding, and targeted geographic expansion to build enduring value for shareholders and clients alike.
Notes on performance and strategy are reported in the year end communications published by Abanca and are supported by independent market analyses and regulatory disclosures. The 2023 results illustrate the bank’s ongoing commitment to delivering value through a steady, well managed growth trajectory and a focus on the core retail business that remains central to its competitive advantage.
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