Banco Sabadell is building a sizable loan portfolio that already totals close to 400 million euros tied to housing loans for clients from Russia, Belarus, and Ukraine. The bank’s leadership is urging businesses to reflect on the principal risks looming on the horizon, drawing from the universal registration document filed with the National Securities Market Commission in Spain this week.
led by Josep Oliu, Sabadell remains a notable actor amid ongoing geopolitical tensions. The organization notes a limited immediate impact on the Spanish economy because exports to Russia account for only about 0.7 percent of total goods traded.
The bank explains that the primary channel through which the war could transmit risk to the domestic economy would be through Israel, via rising energy prices and the broader conflict and sanctions against Russia. Higher costs would squeeze household incomes and compress operating margins, potentially affecting consumption and investment.
Sabadell and Unicaja to finance a 20 million euro loan for Alicante City Council
Sabadell also highlights that the inflationary environment could prompt central banks to tighten monetary policy more aggressively.
Regarding risk exposure, Sabadell points out that the 400 million euros in mortgage loans to Russian, Belarusian, and Ukrainian clients represent a small share of the overall portfolio, roughly 0.25 percent, indicating a limited risk profile.
In this assessment, the bank argues that the assets backing these mortgages are located in Spain, limiting risk from the conflict. It also notes the concept of credit to value, which shows the percentage of debt relative to the property value. The average is around 44 percent, a positive indicator because a lower loan-to-value ratio typically reduces default risk and improves recovery prospects if foreclosures occur, increasing the likelihood of recovering the lent amount.
Banco Sabadell and Afín SGR expand financing lines to 25 million for self-employed and SMEs
The expansion of financing lines also extends to support self-employed individuals and small and medium-sized enterprises, with a focus on sustained credit activity over the past six years.
Market data from Europa Press shows that Sabadell is the leading institution in terms of lending to clients from these nations, followed by other major banks. For context, CaixaBank holds a portfolio of around 185 million euros, Santander around 80 million, BBVA about 58 million, and Bankia around 25 million in similar categories.