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During the first half of the year, major Spanish banks including Santander, BBVA, CaixaBank, Sabadell, Bankinter, and Unicaja reported a combined net profit of 10.295 billion euros. The sector managed to move past the worst of the COVID-19 disruption, yet new challenges loom in the form of a forthcoming banking tax that could weigh on results for the near future.
When Unicaja is excluded from the tally, given its recent merger with Liberbank that reshaped its asset base, the year’s interim profit does not surpass the previous year’s figure of 11.127 billion euros. Industry observers note a shift toward higher dividend distributions as banks refocus on rewarding shareholders while the pandemic era recedes into memory.
The new tax would apply at a rate of 4.8% to commissions and net interest income, as detailed in the bill approved by the Congress with support from the PSOE and United We Can. The measure is slated to affect results for 2022 and 2023, prompting immediate concern across the sector.
The market reaction was sharp, with industry executives openly criticizing the move and signaling they would deploy all available channels to contest or mitigate its impact.
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José Antonio Álvarez, chief executive of Santander, spoke plainly about the tax. He noted that the sector already bears substantial levies and that the benefits of rising interest rates are not extraordinary, especially after a period of zero and negative rates that many lenders endured in recent years.
Santander reported a first-half profit of 4.894 billion euros, up 33% from the previous year, driven by revenue growth and lower credit provisions that helped offset inflationary pressures.
Álvarez cautioned during the results presentation that inflation is tough to counter with taxes, and the impact would be felt regardless of which institutions pay them. He also voiced concern about the longer-term stigma the sector could face as a result of such measures.
Bankinter’s results were presented by CEO María Dolores Dancausa, who labeled the tax as ridiculous, arguing that the sector already shoulders a heavy corporate tax burden. She urged stakeholders to consider common sense amid the uncertainty created by these disclosures, warning that investor hesitation could erode confidence quickly even if the market recovery seems slow to rebound.
Bankinter reported a net profit of 271 million euros for the first half, up 11% from a year earlier. The bank noted the absence of four months of revenue from Direct Line in the current period compared with 2021, and no capital gains from the IPO of the insurance company.
The bank is already paying taxes.
BBVA chairman Carlos Torres Vila echoed concerns about potential uncertainty chilling consumption, investment, and tax collections if the tax goes ahead. He pointed out that financial institutions already contribute a larger share of taxes, citing a rate of around 30% versus 25% for other sectors.
BBVA posted a net attributable profit of 3.001 billion euros for the first half, rising 57.1% year over year thanks to stronger activity and lower provisions.
Sabadell also discussed its half-year figures, reporting a net profit of 393 million euros, up 78% from the previous period and showing positive momentum. The bank stressed that its performance could be maintained or improved even without factoring in the new banking tax under consideration.
Chief Executive César González-Bueno called for tax neutrality in terms of competition and insisted that all corporations should bear taxes fairly, regardless of size. Pablo González, Unicaja’s finance director, echoed the call for common sense, emphasizing that the banking sector remains among the top taxpayers in Spain and should be considered accordingly when contemplating new levies.
Unicaja Banco posted a first-half net profit of 165 million euros, up 62% from the same period last year. CaixaBank announced semi-annual results showing a net profit of 1.573 billion euros, down 62.4% compared with the prior year, indicating that the new tax will affect the bank’s bottom line, though some details remained to be clarified as the period progressed.