The Social Security allocated a record 10.81 billion euros to the payment of contributory pensions this May, 4.8% more than in the same month of 2021, the Ministry of Inclusion, Social Security and Migration said on Friday. The Department headed by José Luis Escrivá estimates that spending on pensions stood at 11.8% of GDP in the fifth month of the year, a lower percentage than in 2020 (12.4% of GDP),…
Spain’s public spending breaks records and settles above 50% of Gross Domestic Product (GDP). The country has thus accumulated two consecutive years – 2020 and 2021 – in which the average disbursement reaches 51.5%, after surpassing all historical spending milestones. However, the revenue figures do not match the expenditure figures and the public deficit is widening. In 2021, with record tax pressure and state revenue, revenue has not managed to…
Bankinter | The Q1 2022 results reflect a greater impact from inflation on costs. For that reason we are lowering our estimates (-6% at EBIDTA level) and target price -5% to 7,76 euros/share. That said, we believe that the share price has over-reacted (down 10% since the publication of results). So it’s a good opportunity to take positions in the stock. The news flow will improve in the coming months….
Santander Corporate & Investment | Fitch announced this week that it has affirmed its ratings for BBVA (A3e, Ae, BBB+e). This includes its long-term issuer default rating of BBB+. According to Fitch’s note, the confirmation of the ratings reflects the capacity for resistance of BBVA’s profits through the economic cycles. This is thanks to its geographic diversification, strong retails franchises in its key markets (Spain, Mexico, Turkey and various Latin…
BME | Revenues of large listed companies rebounded by 17.4% in 2021 from 2020 to €477.778 billion euros. The figure was still 8.3% lower than that achieved by IBEX 35 companies in 2019. A positive indicator for this group of leading companies in Spain is that, with less revenue than before the pandemic, they have achieved the highest aggregate profit figure in their history. IBEX 35 companies generated close to…
Bankinter | Before revising its estimates, Aena is looking at whether the strong acceleration in the recovery of the airline sector this summer is a flash in the pan. The study has arisen after ACI Europe improved its forecasts. It now estimates a recovery of 78% of traffic levels prior to the Covid virus on average in Europe vs 68% previously. These are the forecasts Aena used as a basis…
Link Securities | The consortia led by Spanish infrastructure and services groups ACS and Ferrovial have been selected, along with a third alliance, by the authorities of the city of Ingelwood, in Los Angeles, to present their final bids for a the Inglewood Transit Connector contract. This contract is for the design, construction, financing, operating and maintenance of the automated transit connector, according to yesterday’s elEconomista.es. The project consists of…
Abengoa has submitted to the State Industrial Ownership Corporation (SEPI) all the documentation and information required to obtain new financing for a total amount of 249 million euros from the Solvency Support Fund for Strategic Companies. “The application for this SEPI Financing continues to be processed, having submitted all the documentation and information required by SEPI”, the Andalusian company said in a statement sent to the Spanish National Securities Market…
Aristóbulo de Juan | The fifth anniversary of the so-called resolution of Banco Popular has just passed. A historic event where the new European mechanisms and the FROB were the protagonists. I believe that what happened deserves a reflection based on a recap of the events over the ten long years that put an end to a bank that had been a model until the end of the last century….
Link Securities | In a Relevant Fact sent to the CNMV, Mapfre has communicated to the General Directorate of Insurance and Pension Funds the quarterly recalculation of its solvency position. This is to comply with the European Central Bank (ECB)’s requirement in the context of financial stability. It also follows the Insurance Supervisor’s recommendation based on good practices for Internationally Active Insurance Groups. According to the calculations which have been…