ECB rate hike makes European banks happy

by time news

Santander, the leading Spanish bank, recorded in 2022 the best results in its history with a net profit of 9.6 billion euros. ANDY RAIN/EPA-EFE

The establishments of the Old Continent have all kept in their accounts the provisions accumulated during the health crisis.

If it penalizes the States and the borrowers, the rise in the rates of the ECB also makes happy: the European banks. Thanks to higher rates, which boost their credit margins, they recorded good, even very good results in 2022. This even somewhat surprised observers who were not expecting such a vintage after the very good year 2021.

Some establishments on the Old Continent have in fact smashed new records. This is the case of Santander, the first Spanish bank which recorded the best results in its history last year with 9.6 billion euros in net profit (+ 18% compared to 2021). Ditto for BBVA, the second bank in Spain, which made a record profit of 6.42 billion in 2022. It is true that on the other side of the Pyrenees, the banks lend at variable rates, which has allowed these establishments to immediately raise mortgage rates. However, due to the good results already achieved…

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