CdM | The annualised return on equity of Spanish banks rose to 14.43% in the first quarter, compared to 13.72% in the previous quarter. Furthermore, compared to the first quarter of 2024 (12.28%), the increase was 2.15 percentage points, according to statistics published by the Bank of Spain. The capital ratios of all credit institutions increased in the first quarter of 2025. The Common Equity Tier 1 (CET1) ratio stood…
Bankinter : The Bank of Spain (BdE) is to establish a countercyclical capital buffer (CCB) to strengthen the solvency of the sector. The CCB will be 0.5% of Risk Weighted Assets (RWAs) from 4Q 2024 and may reach 1.0% in 4Q 2025 (standard level for systemic risks). Bankinter’s research team’s opinion: Increasing capital requirements is not good news for the sector, but the impact is limited because: (1) The BdE…
Renta 4 : The National Court overturns the fine imposed by the CNMC (National Markets and Competition Commission) on Santander, BBVA, Caixabank and Sabadell for price-fixing. In 2018, the CNMC imposed a fine of €91 million on Santander, BBVA, Caixabank and Sabadell for violating market practices by agreeing on swap prices. At the time, the banks assumed payment of the fine and made the corresponding provisions for litigation. The distribution…
Santander Corporate & Investment| July’s issuance already exceeds that of the whole of July 2022, as the latter was an atypically inactive month, particularly on the corporate issuers’ side. In the first two weeks of July, €18 billion has been issued, surpassing the €16 billion for the entire month of July 2022, which was a record low in recent years and well below the €42 billion average for the months…
Morgan Stanley : The banking sector’s earnings release was again very successful with PBT beating consensus by 10%, up 20% on last year. Revenues were +9% year on year (+13% eurozone banks), 3% better than consensus, thanks to the strength of NII which offset the fall in fees and commissions. Costs rose 3-4% and were slightly worse than expected. NII was up on average +13% year-on-year and 3% better than…
Divacons / Norbolsa | A total of five Spanish banks are in the ECB’s top 20 in terms of assuming lower capital requirements in what is known as Pillar 2 by 2023, according to supervisory data published yesterday by the ECB. According to Alphavale-Divacons, these are Kutxabank, Bankinter, Santander, Caixabank and BBVA. Kutxabank is the Spanish institution that has received the lowest capital ratio for this year in Pillar 2,…
The Fund for Orderly Bank Restructuring (FROB) made an offer to the rest of the entities that have shares in the Asset Management Company from Bank Restructuring (Sareb) to take 100% of the company for a symbolic price close to €200, according to Europa Press. Sareb’s shareholder banks must decide whether to sell their stake in the FROB, which they have already fully provisioned.
Akira Horiguchi (Capital Group) | 2020 was a rather eventful year for Japan following a series of headline-grabbing events, including COVID-19, a delay of the Tokyo Summer Olympics and a surprise change in leadership in September. Yoshihide Suga’s succession of his ally Shinzo Abe as prime minister, in particular, has provided investors plenty to think about in terms of what Suga’s leadership could mean for Japanese stocks heading into the new year.
J.L.M. Campuzano (AEB) | The total assets of the Spanish financial system amounted to 4.7 trillion euros at the end of 2017, almost four times GDP. In 2012 it exceeded 5.2 trillion euros.
Ofelia Marín-Lozano | The Spanish financial sector has made an unprecedented effort to sanitise its books: since the beginning of the crisis in 2008, sanitising and provisions (amounting to some 260 billion euros) have reduced profit margins by two thirds, according to figures from the latest annual meeting of the financial sector. The role of digitilisation replacing branches was one of the recurrent themes of the meeting.