Spain’s Big Banks Earned 7.8 Billion In Q1’21, Half Due To Caixabank-Bankia Merger

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T.C. | The five big Spanish banks posted net profit of 7.825 billion euros in the first quarter of this year, compared with a loss of 1.053 billion in the first quarter of 2020, when they made provisions of 3.9 billion to deal with the coronavirus crisis.

It should be noted, however, that without the effect of the Caixabank / Bankia merger, the Q1’21 profit would be considerably lower at 3.6 billion euros.

Banco Santander recorded a profit of 1.600 billion euros in Q1’21, a figure on a par with that allocated to provisions in the first quarter of last year, when it earned just 331 million euros.

BBVA obtained a profit of 1.210 billion euros in Q1’21. However, in Q1’20 it posted a loss of 1.792 billion euros, after provisioning 1.4 billion for the coronavirus crisis.

Caixabank, now merged with Bankia, reported a profit of 4.786 billion euros, of which 4.3 billion is due to the merger. Without these extraordinary results, profit stood at 580 million euros (vs 184 million in Q1’20: 90 million for Caixabank and 94 million for Bankia, which made provisions of 400 million and 125 million respectively).

Meanwhile, Banc Sabadell, saw its results fall from 94 million euros in Q1’20 (after provisions of 213 million) to 73 million in Q1’21.

Bankinter, for its part, recorded a profit of 148 million in Q1’21 compared to 130 million in Q1’20, when it made provisions of 113 million to deal with the pandemic.

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The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.