Spanish banking sector

Moody’s focuses on the Spanish banking sector and its rate of reduction of NPLs

Link Securities | The ratings agency Moody´s downgraded its rating outlook for the Spanish banking sector as a whole from “positive” to “stable”, as a consequence of the banks´ slowing reduction of non-performing loans (NPLs).
The agency expects fewer disinvestments in 2019 than registered in 2018, when banks accelerated the sanitisation of their balance sheets.

ECB moves damaging the banks: big companies seek fewer loans

The banking sector has more than one reason to complain about the ECB’s latest moves. In addition to the fact that zero interest rates are burying their margins, their lending business is now suffering the damaging effects of the central bank’s corporate sector purchase programme. This new measure has meant that many big companies are substituting bank financing with bond issues.

Bank of Spain

The “Abrasive” Banking Regulation In Spain

In the last six years, the Spanish banking sector’s return on equity (ROE) has fallen by 6.8 percentage points from 12.1% to 5.3%, mainly due to increased capital requirements. But the drop would have been even greater if it had not been for the ECB’s policies. This ROE data coincides with a complaint from Banco Popular chairman, Angel Ron, who said the regulation affecting the financial industry is “abrasive.”

Economy at a glance: the bank of Spain forecasts

Spanish Banking Sector Reform: A Second Round On The Cards

Despite the fact that many of the banking sector ratios are improving, the Bank of Spain in its November bulletin has once again called on the industry to adjust its business model and even adapt its corporate strategy to a demanding economic and regulatory environment.

Caixabank has very efficient cost structures

Conditioning Factors For Spain’s Banks In 2016

Last week the Spanish banking sector began its third quarter results presentations, but analysts are going one step further and are already looking for indications ahead of 2016. The outlook is not wholly favourable if we take into account the factors affecting it on the downside.

No Picture

NPLs continue to decline in Spanish banking sector

MADRID, February 20, 2015 | The Corner | Non-performing loans in Spain continue to decline, with the total ratio of bad debts now standing at 12.5% of total outstanding loans. The figures represent the fourth consecutive decline in non-performing loans and now stand at the lowest level since September 2013. The figure is over 100bps less than the 13.6% recorded in December 2013, in spite of overall lending falling by -4.6%.

No Picture

Spanish Banking Sector Smiles Again Thanks to 2013 Business Results

MADRID | By Francisco López | The new season for presenting results starts this week with much better expectations than in previous years. After two years recording negative results in Spain, most market watchers consider that 2013 allowed the return to positive figures thanks to cost reductions, the increase in financial operations, the low interest margin and a lower impact on the accounts of the harsh restructuring process started in 2009.

No Picture

Investors See Spain As No-Brainer, Juicy Risk

THE CORNER TEAM | As the euro zone crisis shakes off a recession, investment opportunities are mushrooming across the South of Europe. In Spain, banking and media sector as well as infrastructure are the preferred bets. “As maximum exposure recovery in Europe’s periphery, FCC is ideal. Just don’t think about the downside,” the Financial Times’ Lex argued on Friday, after millionaires George Soros and Bill Gates have both bought stakes in the indebted construction company in less than three months.