Morgan Stanley | The Spanish Banking Association (AEB) has reached an agreement with trade unions to raise salaries by 4.5% in 2023. This figure compares with the 5% increase in costs which analysts had in their models for 2023-2024. It also compares with the estimates for a 25% growth in NII in Spain in 2023. Although this agreement only applies to Santander, BBVA, Sabadell and Bankinter, Álvaro Serrano believes that a…
Santander Corporate & Research | On Friday, S&P changed their ratings for several of the mid-sized Spanish banks. On the one hand, the ratings agency revised its view on resolution strategies for the mid-sized lenders. It indicated that it now thinks the authorities’ preferred means of resolution for banks of this size is the sale of its entire activity. S&P indicates it “has gained visibility on this means of resolution…
Morgan Stanley | Spanish banks have underperformed 8% since their results, despite having beat NII estimates by 4%. The market is pricing in a slowdown in NII due to the increase in the costs of deposits with the end of the TLTRO and the start of competition anticipating what we are seeing in the US. Alvaro Serrano considers this to be an inaccurate analysis, given that the situation in the…
The opinion of the European Central Bank (ECB) on the new bank tax, which is currently before Congress, is already public. The banking supervisor has issued a tough and detailed opinion in which it warns of the negative effects that the tax, as it is designed, could have on the banking sector, such as damage to profitability, competition, solvency and the granting of credit, while warning of the risks of…
Warinca Arce | At the presentation of the new temporary and extraordinary taxes on large energy companies and the country’s big banks, Patxi López, spokesman for the socialist parliamentary group in Congress said: “Those who are protesting are the same people who, when they, the financial institutions, had problems, knocked on the door of ‘papa Estado’ to fix their problems. And ‘daddy state’ put in 60 billion euros…”…. “So far,…
The Government plans to hold a meeting this Friday with representatives of the banking sector in which it will address, among other issues, the new temporary tax on the sector announced by the President of the Government, Pedro Sánchez, which will last for two years and will seek to raise a total of 3,000 million. Although the meeting does not revolve around this extraordinary tax, the details of which are…
CdM | Despite adhering to international initiatives, since 2016, the top 60 banks worldwide have dedicated a total amount of $3.8 trillion to fossil fuels. The financing of fossil fuel projects and companies results in GHG emissions incompatible with the economic decarbonisation needed to limit global warming to around 1.5ºC. In the case of Spanish banks, Bankia, Bankinter, BBVA, CaixaBank, Banco Sabadell and Banco Santander have signed up to this…
The return on equity (RoE) of Spanish banks in the second quarter of 2021 was the highest in the euro area at 11.49% annualised, according to the ECB Thus, the profitability of Spanish banks was well above the average of 6.92% annualised for the aggregate of the 114 banks directly supervised by the central bank, of which eleven are Spanish institutions. At the opposite end of the spectrum to Spanish banks, Greek banks recorded an annualised RoE of -34.28%.
A total of 13 banks operating in Spain posted net losses in the first half of 2021. This is compared to 15 entities that recorded ‘red numbers’ in the same period of the previous year, according to the financial statements of banks published on Friday by the Bank of Spain. In the first half of the year, ten banks associated with the Spanish Banking Association (AEB), one of the Spanish…
Funcas believes that the Spanish banking sector would still have to make provisions amounting to 12,000 million euros in the income statements of 2021 and 2022, and expects an increase in doubtful credit between the end of 2022 and early 2023.Specifically, Funcas estimates that the “peak” of doubtful credit will be reached between the end of 2022 and the beginning of 2023, with a subsequent recovery, so that NPLs will be close to, but slightly above, pre-Covid-19 pandemic levels in 2024.