The profitability obtained A slight improvement against 2023, although the descent from maximum has been widespread with different intensity. In a global comparison, the average ratio ended the year at 3,125% compared to 3,316% cap reached just before the European Central Bank (ECB) started the sales of interest rates.
By entities, CaixaBank fits the largest cut since its best brand, with a setback of 0.330 percentage points; followed by Santander and Unicaja, with 0.30 points; BBVA (-0,140); Bankinter and Sabadell (-0.10 points in both cases), the latter being the only one that saves the year up (widen 0.08 percentage points). Now, both Sabadell, and CaixaBank, Santander and BBVA finished the exercise with the ratio at 3.3%, with Unicaja somewhat more behind, with 2.61%; And every industry has done the duties to contain its narrowing and that passes the least possible invoice in the results.
The big keys to compensate for the lower contribution were already last year and will continue to be in the future to push the credit business and commissions revenues with a greater crossed sale of products, and in the upper part of the “shield” account the margin Financial with a superior commitment to fixed mortgages and an increase in the investment portfolio in fixed income (private and debt) to take advantage of the profitability of the bonds. Different banks see, in fact, feasible to hold the ratio very close to its last brands although the ECB drops the price of money to thresholds close to 2%.
“Armor” in the current ratio
The big entities returned, in fact, to spray record in 2024 with a benefit of 31,768 million euros at the group scale and that grew by 20.54% year -on -year. The great engine was Spain, where the account shot 36%, up to 15,787 million, despite the arrest of the imposite (it drained 1,478.6 million). And he did it thanks to the renovated business thrust with the change of sign of monetary policy and for the deceleration in the accounts of the largest banks in other geographies by factors such as the penalty of their currencies, as happened with BBVA in Mexico, or by strong sanitation, as was the case of Santander in the United Kingdom.
For this interest margin analysis, its march in Spain is taken exclusively with the desire to seek greater homogeneity in the comparison between entities and because the parameter is far from countries both by the threshold of the types and for their effective impact.
The scenario has mutated in terms of types for industry on account of inflation. Its climbing through the pandemic, the energy and logistics crisis aggravated by the Russian war, led to the ECB to push the price of money from 0% to 4.5% between July 2022 and September 2023, insufflating a generous widening of the margins that neither the market nor the entities themselves had predicted, helping them to beat the projected financial objectives long.
According to the statistics of the Bank of Spain, the average price at which mortgages were hired rose from 1.38% TEDR from the late 2021 to 3.94% in October 2023 -TEDR is a rate similar to the TAE but without commissions-. For loan to companies, the rate increased from 1.24 to 5.21% in the same period. The TEDR of the portfolio already financed rose from 1.10% to 3.71% in mortgages and from 1.65% to 4.47% in the living balance financed to companies, although the peak in the stock touched it for 2024 for the existing decalage in the hiring when the operations are signed with the Euribor reference of a few months ago. In any case, these maximums have been down due to the change of direction of monetary policy. At the end of 2024, the average price hiring price had fallen to 2.90% TEDR and in companies at 4,039% -at 3.32% and 4.01% in the funded portfolio, respectively.
On the other hand, the translation of the types to the remuneration of the deposits has been more limited and delayed in time, which favored the widening of the margin by client. The average remuneration offered by the sector to capture fresh money from families in these products rose from 0.06% from 2021 to 2.65% in last summer, and the offer for companies from 0.45% to 3.40 %, and subsequently has also been reduced.
By entities, the highest cost of deposits at the end of last year was held Bankinter, with a remuneration of 1.42%; followed by Sabadell (1.1%), Santander (1%) and Caixabank (0.96%). In credits, Sabadell leads the ranking, with 4.41% for its high position in the segment of companies whose loans are more profitable; followed by Bankinter (4.32%) and Santander (4.31%).
The mortgage business grows again for the third time from the big crisis
The beginning of the decrease of types by the ECB has encouraged the anemic demand. The Banca Mortgage portfolio grew again last year for the third time from the outbreak of the great financial crisis. His living balance increased 0.58% and amounted to 497,889 million, according to the statistics of the Bank of Spain. Since 2008 he had only increased in 2010 and 2021, after collapsing his activity during the pandemic.
It rises because the new concession increased by 11.37% and because the amortizations that the families had hurried the previous two years were normalized, precisely when the ECB began to rise the types, to mitigate its impact on the amortization quotas.
In companies, on the other hand, the financed ‘stock’ was reduced by 0.16%, up to 462.005 million after 0.65% fell the concession -operations were made by 344,297 million. Companies have also taken advantage of the descent of types to diversify financing and place debt emissions at better prices.
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