He starts 2026 with the best first quarter in its history. The entity increased its profit by 11%, reaching 2,989 million euros. The bank’s profitability (measured as ROTE, return on tangible capital) climbs to 21.7%, one of the highest levels in Spanish banking. The entity has also announced the launch of a second tranche, of 1,460 million, of the The entire program is endowed with 4,000 million.
The bank obtains a significant improvement in its income. The interest margin amounts to 17.8% compared to the first quarter of last year and reaches 7,537 million. Here the bank benefits not only from the pause in the reductions in interest rates that the European Central Bank (ECB) decreed last year, but also from the forecasts that the war in Iran and its consequences on the rise in energy prices and inflation will make this institution change its pace and raise the price of money, as already reflected in the Euribor.
In addition, net commissions increased by 9.5% to 2,256 million. And the gross margin reached 10,652 million, 10.8%. Expenses, however, also grew by 13.7%, to 4,049 million. All of this leads to efficiency (a ratio that relates a bank’s income and expenses and the lower it is, the better) at 38%.
In terms of solvency, it reaches a CET 1 ratio (which measures the highest quality capital) of 12.8%, above the minimum set by the entity, in a range between 11.5% and 12%. Thus, non-performing loans remain at historically low levels, at 2.6%, and the cost of risk is slightly rising, at 1.54%. Losses due to impairment of financial assets increased by 31%, to 1,820 million, and provisions doubled, to 62 million, with the volume of doubtful credit at its highest level in a year. These factors may indicate greater tension in the credit market and macro instability due to the war.
News in development. There will be expansion.
