Spanish banks

Spanish banks 's 2Q18 results season will start on July 25th

Spanish Banks Will Present Results Amidst Concerns Of Potential Bank Tax

Spain was a well-liked region within European banks until the new government came into place. As Morgan Stanley points in a note to investors, “the negative noise around a potential bank tax and the doubts on the fiscal plans have hit the sector.” Santander will kick off the 2Q18 results season on July 25th with all the eyes on its capital position and headwinds from Latam currencies. Issues like Turkey in BBVA and TSB in Sabadell have provided more downside to some of these names.


ECB financing Spanish banks

Spanish banks’ need for ECB financing 2nd in EZ

BS Markets | Spanish banks’ recourse to Eurosystem financing stood at almost 170 billion euros in May. Second only to Italy’s in Eurozone, whose needs amount to around 250 billion euros. In both cases these volumes represent  15% of GDP and between 6 and 7% of the size of the sector.


Spanish banks and housing market

Mortgage Credit in Spain Continues To Fall: What Can Be Done?

Raimundo Poveda | Spanish banks must find somewhere to invest. Their retail credit, for now with a low level bad debts, has been growing at an accelerated rhythm for the last couple of years. But that is where the good news ends. Credit for house purchases, by far the most important component in household credit, and in all private sector credit, continues to fall (2.5% in 2017).


Spanish banks posted after-tax losses of €3.92 billion for last year

Spanish Banks Still Reducing Their Balance Sheet, To 224% of GDP from 234% Last Year

Adjustments to the number of employees and branches in the sector continue, despite the fact that the deleveraging of the private sector seems to be coming to an end. Spanish banks are feeling the effects of the resolution and sale of Banco Popular in June 2017 and posted after-tax losses of €3.92 billion for the year, although it achieved further improvements in solvency and asset quality.


Sabadell

Sabadell is starting to stabilise

Société Générale |The situation seems to be calming down in TSB and there is more visibility. The IT problems and the negative PR will have an impact on the UK franchise, which we hope will be profitable this year. It looks like Sabadell is beginning to stabilise now, we expect a more limited impact from 2019 and reiterate our Neutral stance.

 



Caixabank has very efficient cost structures

Spain And Italy Will Dominate Net Interest Income Growth in 2019

Morgan Stanley believes Spain and Italy are going to dominate Net Interest Income growth in 2019. They flag that Unicaja, Bankinter and Caixabank are amongst the banks which improve their ROTE more with every 50 bp rise in the Euribor. Furthermore, they have very efficient cost structures.


Spain banks in 2018

October marks a new low level of NPLs in Spain

Spanish banks NPLs ratio fell to 8.22% in October, over one percentage point lower than a year earlier. Recently published figures from the Bank of Spain show that the pace of the decline in NPLs accelerated in October, registering an anual 12.52% drop (-11.64% in September).



Spanish banks return 37% of floor clauses demands

Spanish Banks Return 37% Of Floor Clauses Demands, Reject 20%

Spanish banks have returned 1.5 billion euros in cash to more than 350.000 people affected by the floor clause, with whom the lenders reached an agreement after they filed a claim. This is according to figures presented by the banks at September 30, via the Commission which was set up last April to monitor the issue.