Whether it marks the end of an adjustment or stands as a standalone pause, the truth is that 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 start. It is a notable shift for an industry that lost more than two thirds of its network during that period, accompanied by encouraging signs: finance is redefining business models, and employment in Alicante is rising, with nearly 200 new jobs added in the past year.
These insights come from the latest official figures published by the Bank of Spain and Social Security statistics. They reflect a favorable moment for the sector as higher interest rates have expanded trading margins and boosted profits for many institutions.
In Alicante, the current census shows there are 592 branches still operating, a figure reported at the end of June. Compared with the same date last year, there are 16 fewer branches, the smallest decline since 2008. What stands out is that the reductions occurred mainly in late 2022, while the first half of this year has shown stability, a stability not seen since the real estate crisis began.
There were some closures in the recent period, such as CaixaBank reducing three offices as part of the post-integration realignment with Bankia. Yet openings, especially by La Mancha and Eurocaja, managed to offset these closures.
Overall, there is a sense of stability, with 1,178 closures recorded to date, representing about 66.5% of the region’s network. The banks in Alicante are increasingly relying on a leaner footprint while maintaining service levels for customers.
Alicante retains only a third of its bank branches
The second bright spot is that the Spanish financial system is beginning to privatize more efficiently after years of consolidation. The sector has started to hire again, contributing to local employment. By the end of the first period, Alicante reported 4,676 workers directly employed by banks, up 190 from the previous year. When auxiliary activities are included, the total reaches 253 more workers.
This is a sharp contrast to the more than 4,200 jobs the sector has destroyed in the region since 2012, according to the latest Social Security data from the Generalitat’s Statistics Portal in Valencia.
Strengthening
According to Victoriano Miravete, head of the Financial Sector unit at UGT, the rebound in employment in banking is driven largely by new technological roles. Banks are recruiting to strengthen services and upgrade office equipment, while adding specialist managers and more commercial staff to support growth.
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On similar grounds, the union leader argues that networks will not bear major new regulations unless larger towns are retained. He cautions this could trigger social tensions and pushback that the industry prefers to avoid.
Joaquin Maudos, deputy director and industry expert at the Valencian Institute for Economic Research, offers a different view. He notes that Spanish banking remains one of the busiest systems in the European Union in terms of the population served and predicts continued, though slower, reductions in the branch network over time.
Sabadell broke the profit record due to the interest rate increase
Maudos adds that improved banking margins reduce the pressure to cut costs, though profitability remains a challenge as the sector bears the cost of capital. He also points out that demand is shifting toward online banking and that improving digital skills will lessen the need for personal attention. The emergence of new operators offering financial services beyond traditional banks adds pressure to cut costs further.
Sabadell maintains leadership in network planning. Despite recent outages, Sabadell remains the largest operator in Alicante with 134 offices as of the end of June. The bank, led by its executive team, has continued its consolidation efforts since absorbing CAM in 2012, save for a brief period in 2021 during the merger. CaixaBank briefly paused its lead position after Bankia, but eventually reclaimed top status.
Following network adjustments tied to the consolidation, Caixabank’s leadership placed it behind Sabadell with 104 offices. BBVA follows with 76 locations, Cajamar reaches 70 in the province, including offices in Altea, Callosa and Petrer. These four groups alone concentrate 65% of the province’s total network, underscoring the sector’s long-term concentration trend over the past decade and a half.
Behind them Santander operates 58 offices throughout the province, while Central Village Bank maintains 50 branches, completing the landscape of the local banking network.