The five large Spanish banks accumulated joint profits of 20,582 million euros last year, 8.5% higher than the previous year and the highest figure in their history. The increases in interest rates and the greater economic activity explain the good results, which would have increased more, 27%, if the extraordinary effects of the merger between Caixabank and Bankia, recorded in 2021, were not included.
Of all the entities, the one that marks the distance is Santander, with profits of 9,605 million, 18% higher than those of the previous year, ahead of BBVA, which obtained a profit of 6,420 million, 38% more. They are followed by CaixaBank, with 3,145 million, 39.8% less due to the accounting effects of the merger, and Sabadell, with 852 million, 62% more. The group is closed by Bankinter, with a profit of 560 million, 28% more. Santander, BBVA and Bankinter had record profits, while in the case of Sabadell the result was the second best in its history.
The presentations of results have been accompanied by improvements in dividends, strong rises in the stock market and also new friction between the Government and the country's big bankers. The Minister of Labor, Yolanda Díaz, proposed freezing the mortgage increases after learning about the BBVA accounts and found a response among the entities. The president of Santander, Ana Botín, warned him of the risk of the "culture of non-payment" and the president of BBVA, Carlos Torres Vila, asked him "not to misunderstand".
The president of CaixaBank, José Ignacio Goirigolzarri, said yesterday that it is necessary to "contextualize" the figures offered by large entities. The bank, he assured, "has to be profitable to be able to finance the real economy" and it is necessary for its profits to recover after a period of negative rates. “Banking does well when the economy is doing well,” he added.
All the banks have coincided in underlining this process of "normalization" after several years with negative interest rates in which their value on the stock market has even been below bookkeeping. Mortgages and loans, they say, cost even less than risk, so they will continue to rise. Meanwhile, they are reluctant to reward savings and remunerate deposits because there is still a lot of liquidity. "It is not on the table" to make deposits attractive, said the CEO of BBVA, Onur Genç. "It will be done at some point," Botín said. The increases will end up coming, predicted the CEO of CaixaBank, Gonzalo Gortázar.
The most immediate reaction to the high profits of the banks can be seen in the dividends. Santander will distribute 3,800 million among its shareholders, 16% more, after setting the payout at 40%, which is the percentage of profits allocated to dividends. BBVA will distribute 47% of the profit, or 3,800 million, 40% more than a year earlier. CaixaBank has placed the payout at 55%, with which it will distribute 3,500 million between dividends and share repurchases. Sabadell will allocate 430 million euros to these two concepts, 33% more. Most of this news was accompanied by strong rises in the stock market, among which that of Sabadell stood out, exceeding 10% on the day of the results. On the other hand, CaixaBank fell 2.7%.
Of all the profit, that corresponding to Spain is equivalent to 7,289 million euros, or less than 40% of the total. The new government tax on banks and energy companies is directed to this business for what it considers extraordinary profits. Banks estimate the annual impact of the tax at 1,125 million and are willing to litigate. "We are going to appeal it," said the CEO of Bankinter, María Dolores Dancausa. "It is our fiduciary obligation," said Ana Botín in reference to the shareholders.
The banks highlight the low delinquency rate and its good capital position. The forecast for this year is that interest rate rises will continue, which will boost business without the need for large provisions for now.
The largest of all, Santander, indicates that the rises in the price of money are not yet decisively reflected in Spain and calculates that it could add between 2,500 and 3,000 million additional euros to the more than 52,000 million entered last year from interest and commissions. Its president believes that inflation "is the cancer that must be fought", and the main treatment is interest rate hikes.
