Whether it marks the end of a long adjustment phase or stands as a milestone on the road ahead, the reality is clear: for the first time since the real estate crisis, the province has closed the first half of this year with the same number of bank branches as at the midpoint of last year. This represents a notable shift for an industry that saw more than two-thirds of its network disappear over the past years, and it arrives alongside other encouraging signals: finance is reinventing its business model and employment in Alicante is rising, with close to 200 new jobs added in the last year alone.
This interpretation rests on the latest official data published by the Bank of Spain and Social Security statistics. It reflects a period of relief after rapid interest rate hikes expanded trading margins for institutions, boosting profits in the process.
In Alicante, the most recent census shows 592 bank branches still in operation, a figure released at the end of June. On an annual basis, this is 16 fewer than on the same date last year, marking the lowest number of closures since 2008. What stands out is that nearly all of these reductions occurred in the latter half of 2022, while the first half of this year has exhibited stability — a continuity not seen since the real estate crisis began.
To be precise, there were still closures in the recent period—for example, CaixaBank reduced its number of offices by three as part of the final steps of the Bankia integration. Yet new openings, especially from La Mancha and Eurocaja, managed to offset those reductions.
In any case, there is a clear sense of stability on the horizon. By now, 1,178 closures have been recorded in the region, meaning that 66.5% of the network has adapted and that banks across Alicante have begun to rely on a leaner footprint.
Alicante retains only a third of its bank branches
The second positive sign is that, for the first time since the crisis began, the Spanish financial system has embarked on a privatization cycle that has helped to restore employment within the sector. By the end of the first period, several institutions had resumed hiring. In Alicante, 4,676 workers were employed directly, up 190 from the previous year. When auxiliary activities are considered, the figure rises to 4,929.
Although the number may appear modest, it stands in sharp contrast to the more than 4,200 jobs the sector has shed in the region since 2012, according to the latest Social Security data compiled by the Generalitat’s Statistics Portal in Valencia.
Strengthening
According to Victoriano Miravete, head of the Financial Sector at UGT, the employment recovery in banking is driven largely by new technical profiles that institutions are hiring to strengthen services. This includes upgrading office equipment and facilities, as well as adding specialized managers and more commercial staff to support growth in core activities.
Bank of Spain Governor calls for “strong consensus” to fix budget deficit and face new structural reforms
The union leader argues that networks can no longer sustain major new regulations without retreating from larger towns; such a move could trigger social unrest and a backlash that the industry does not want to invite.
By contrast, Joaquin Maudos, deputy director and industry expert at the Valencian Institute for Economic Research (Ivie), contends that Spanish banking remains one of the busiest in the EU in terms of the population it serves. He predicts that the network reduction will continue, albeit at a slower pace, in the coming years.
Sabadell broke the profit record due to the interest rate increase
From another angle, increasing margins are easing cost-cutting pressure and the necessity to close more offices, though profitability remains a challenge as the sector navigates capital costs. Maudos notes that demand is shifting toward online banking, and boosting the population’s digital skills will further reduce the need for in-person attention. The emergence of new providers offering financial services beyond traditional banks is also pressuring incumbents to trim costs.
Sabadell continues to set the pace in network optimization.
Despite notable reductions in recent years, Sabadell remains the leading bank in terms of branches in Alicante, totaling 134 offices as of the end of June, according to Bank of Spain data. The group, under Josep Oliu, has pursued network adjustments since absorbing CAM in 2012, with only a brief pause during the 2021 merger period. CaixaBank briefly ceded the top spot to Bankia during that time. After the consolidation, CaixaBank trailed Sabadell in second place with 104 offices, while BBVA followed with 76 branches. Cajamar manages around 70 locations, including offices in Altea, Callosa, and Petrer. Together these four groups account for a large share of the province’s network, explaining the concentration seen over the last decade and a half. Behind them, Santander runs 58 offices, and Central Village Bank maintains about 50 branches in the region.