Spanish banks achieve a 10% profitability in a high volatility environment

Alvarez & Marsal (A&M) is delighted to publish the eighteenth edition of the Spanish Banking Pulse (“The Pulse”) Q2 ’23. In this edition, we share results from our research examining the 10 biggest Spanish banks (“top 10”) with regard to their activities within Spain and highlight key performance indicators of the Spanish banking industry. 

The Pulse aims to help banking executives and board members stay current on industry trends. As trending topics, we include: Spanish Banks Stress Test Results and a detailed analysis of the financial margin from the perspective of its components.

All the data used in this report has been obtained from publicly available sources. The methodology for all the calculations is homogeneous and discussed in the glossary. 

Key trends:

• The profitability (ROE) of the banking sector in the first semester stands at 9.9%, which is 1.6% higher than the previous quarter.
• Industry solvency has slightly decreased, with a CET1 fully loaded ratio of 12.82%.
• Non-performing loans (NPLs) showed a 2 basis point drop due to the sale of doubtful portfolios, and the cost of risk continues its downward trend, reaching 0.39%.
• Alvarez & Marsal's ranking for large-sized entities is led by Caixabank, while that for medium-sized banks is led by Kutxabank.