The Spanish state has collected 54.749 billion euros up to March, almost 10 billion more than in the same period last year. This is despite the fact that GDP then grew by 2.2% compared to the previous quarter, while this year it has barely grown by three tenths of a percentage point. The historic rise in inflation is filling the public coffers thanks to the fact that tax revenues in…
Fernando González Urbaneja | The relationship between bond and share prices is well known; when bond yields fall, shares are likely to rise. And the opposite is true, the lower the bond yield, the higher the share price. This is the general thesis that admits exceptions and variants. Bond prices are closely linked to the interest rate determined by central banks as well as the risk premium applied to each…
Francis Ghiles (Vía Fair Observer*) | The Ukraine-Russia crisis has laid bare Europe’s dangerous reliance on Russian energy. But it has also opened up new opportunities for the exporting of Libyan and Algerian gas. Never has the question of where Europe’s foreign gas supplies come from, and whether there are alternatives to the continent’s dependence on Russia, been so much debated as in recent weeks. A subject that is usually…
Renta 4 | After an internal audit by KPMG of Grifols affiliate Biomat, it has been deemed necessary to reclassify the firm’s balance sheet, considering (Singapore Sovereign Fund) GIC’s capital injection in the subsidiary as debt. This means that at end-2021, the company’s financial debt will rise to 6.480 billion euros from 5.828 billion, after including GIC’s 800 million euros investment in Biomat. Following this reclassification, Grifols capital has been…
Fernando González Urbaneja | Several ministers in conversations with journalists have complained about the excessive, extraordinary, abusive… profits of the electricity companies. These adjectives have been heard in Parliament from the mouths of more than a few dubiously documented parliamentarians. It would be desirable for such descriptions to be followed by explanations and figures, because where there are no accounts, stories dominate. To begin with, it would be useful to…
According to a study carried out by the PwC Foundation and the CEOE Foundation amongst 64 companies, Spanish firms have raised more than 250 M€ abroad, which has benefited 38 million people. The study also shows that Spanish companies tend to concentrate their social action in certain geographies: 51% of the projects analyzed are present in Latin America, which is the region most covered, followed by sub-Saharan Africa, which accounts…
Bankinter : Main Q1 2022 figures compared to Bloomberg consensus expectations: Net Interest Income: €4.158bn (+20.5% vs €3.920bn e); Gross Margin: €5.939bn (+15.2% vs €5.418bn e); Net Margin: €3.525bn (+23.7% vs €2.983bn e); Ordinary NAB: €1.651bn (+59.8%); Published NAB: €1.651bn (+36.4% vs €1.235bn e). Analyst’s view: We expect a positive share price reaction to the results which surprise positively in the most important metrics (activity, revenues and cost of risk/CoR)…
The growth was underpinned by the bank’s business in loans and long-term savings products and lower expenses due to synergies from the merger with Bankia. This led to a rise in operating profit (+5.4%), and a reduction in loan-loss provisions (-23.2%) and other provisions (-37.7%). The NPL ratio declined to 3.5% in the fourth quarter and the coverage ratio rose to 65%, following the fall of EUR 272 million in…
Bankinter | Inditex’s 2021 results (closed at 31 January 2022) have not met expectations and the outlook is deteriorating. The model is showing resilience, with strong cash flow generation. However, forecasts for 2022 are getting complicated. On the revenues side: activites in Russia and Ukraine suspended (9% of stores), outbreaks of Covid-19 in China (5% of stores) and the deterioration in confidence and purchasing power of consumers in Europe and…
Adjusted net income, which measures the performance of the businesses, was €1.056 billion, 69% of which came from the Exploration and Production division that carries out all its activities outside Spain. The invasion of Ukraine, which is affecting the international environment in 2022, has led to a significant increase in the prices of raw materials, with a clear impact on fuel prices. The Exploration and Production business was supported by…