spanish banks profitability

Ibex 35 closes 2018 with an increase in net profits of 4.3%

Santander | The publication of the 2018 results have practically finished, and Europe´s company profits have shown their resilience in a global scenario dominated by the uncertainty generated by the fear of a “trade war”, volatility in emerging markets, currency weakness, Brexit, the increase in populism in the South of Europe…


Spain banks studying charge for deposits; but they are afraid to do so

F. Barciela / F.G. Ljubetic |The news that a UK bank and a German lender are going to start charging clients for their deposits has raised the question of whether Spanish banks are thinking of doing the same. For the time being this deposits’ charge will generally apply to very specific segments of client business. The continued decline in margins at the Spanish banks is worrying; a consequence of the fact that interest rates on loans are increasingly lower while the remuneration costs on liabilities are maintained. In the end, the Spanish banks may not have any option but to bite the bullet…and charge for deposits.



Spanish Banks’ Profitability Is Starting To Pick Up

It looks as if 2016 will be the first year to bring some normality to Spain’s banking sector in terms of capital requirements since the start of the deep financial crisis. The most important consquence of this crisis has been the sharp drop in the industry’s profitability – a 6.8% decline in return on equity (ROE) to 5.3% in six years. But AFI analysts estimate that the Spanish banking sector’s profitability will be around 6-7% over the next few years.