2023-04-17 18:06:41
The consolidated profit of the banks of the Spanish Banking Association (AEB) stood at 12,524 million euros, 12.5% more than in the previous year, and their ROE profitability stood at 11%, reaching “for the first once in many years” the range that would cover the cost of capital.
This was stated by the president of the AEB, Alejandra Kindelanin a press conference after holding the General Assembly of the association.
Kindelán highlighted that last year’s result was “healthy growth” for the sector. He indicated that the share of loans and deposits on the total balance was 58%, ten points more than the European average. In total, deposits grew 10% last year and exceeded 1.7 trillion, and loans advanced 5.5%. “The entire loan portfolio is financed with customer deposits,” said Kindelán.
This argument, as well as the geographical diversification of the sector, contributed to defending that a case like that of Silicon Valley Bank (SVB) “could not happen in Spain”. He also indicated that 66% of the deposit balances of companies and families are guaranteed by the Deposit Guarantee Fund.
He also pointed out that “today there are no relevant sectors with worrying defaults” and that defaults closed last year at 3.4%, the lowest in 2008.
The entities’ own funds exceeded 220,000 million, they have 60,000 million excess capital compared to the minimum requirements and ROE profitability reached 11%, the highest since the financial crisis, and above the European average of 8%. This profitability allowed the sector to enter “for the first time in many years” in the range of estimates to cover the cost of capital. However, he pointed out that banks are below the average return of the Ibex-35 of 15%. The efficiency ratio stood at 46.4%, above the European average.
Kindelán indicated that 9,000 million were allocated to Corporate Tax and if others such as VAT or Documented Legal Acts are added, the tax contribution would represent 51% of the balance, which in turn would grow by ten points if the tax on the sector, according to PwC calculations.
Precisely, when asked about the tax, the president of the AEB He pointed out that they are not seeing a direct impact on credit at this time, although it is a factor that will affect the environment of uncertainty.
On the other hand, when asked if there is a delay in the remuneration of deposits, she replied that Spanish banks are coming from a period of excess liquidity that “has changed very radically last year” because the Spanish sector is the that more liquidity is being returned to the European Central Bank (ECB) and considered that “there is no competition problem in Spain”, that there are “multiple offers” and “fierce competition”.
On the mortgage agreement to alleviate the impact of the rise in interest rates on family installments, Kindelán insisted that it be fulfilled as it is and “not generate uncertainty” with proposals for changes. He pointed out that the requests are arriving “in a natural and progressive way” and in recent weeks “the inquiries have increased”. The latest data, which was already made public in March, refers to 9,000 applications and 15,000 queries.
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