March 8, 2021

The big bank relieves its profits with 11,000 million in commissions


The big bank, which is experiencing moments of business transformation, concentration of entities and adaptation to new business times, is no stranger to the structural problems that its sector is dragging. The heavy burden of real estate assets – relieved by the 'bad bank' in the most toxic – commercial and personnel structures that try to lighten through online activity, a financial margin (the difference between what is paid for deposits and those charged for credits) reduced to a minimum in the face of low interest rates and transactions with the ECB that are not at all buoyant have complicated the income statement of the main banking entities in the country.

This set of factors undoubtedly complicates the income of the large Spanish banks (Santander, BBVA, CaixaBank, Bankia, Sabadell and Bankinter), which will reduce their profits by around 12% in the first half of the year, to around 7.5 billion, according to Analyst forecasts.

This has led the six main Spanish banks to look for formulas that ease their accounts. As can be seen from the financial accounts of the main entities corresponding to the first half of the year, compiled by Europa Press, these six entities entered a total of 11,051.5 million euros for commissions to their clients until June. In the context of low interest rates and slowdown of financial operations, entities seek to raise their income with more indirect concepts, such as raising some commissions for the services they provide, although the fierce competition in the sector can turn this strategy into a ballast, and even fall into a bad image undesirable for competitiveness.

These 11,051.5 million represent a decrease of about 6.2 million euros compared to the same period of 2018, although the percentage difference is minimal, just -0.05% in relative terms. Two entities have improved their income percentages For these concepts. Banco Sabadell, entered through this item a total of 706 million euros between January and June, 10.9% more than in the same period of the previous year. Next to him, Bankinter is another entity that has managed to improve this concept, by entering 231.5 million, a figure 3% higher than the first six months of 2018, when it captured 224.7 million euros. Revenue from charges in the banking operations of the other four large entities maintained mostly negative or practically flat behavior, although the total amount of income is substantially greater than that of Banco Sabadell or Bankinter, given its higher turnover. In this sense, Banco Santander achieved a commission volume of 5,863 million euros. The entity led by Ana Botín reduced this item by 0.4% year-on-year, as it closed June 2018 with 5,889 million. BBVA commission revenues experienced a drop equal to that of Banco Santander, 0.4% year-on-year. In its case, the total amount was placed at 2,470 million euros. CaixaBank is the entity that has seen this item decrease most during the semester. The Catalan bank suffered a 3.5% decrease in commission income, reaching 1,248 million, compared to almost 2,000 million registered as of June 2018. Finally, Bankia maintained this item for the first six months of 2019 practically in line with that of the same period of the previous year. The total amount reached 533 million euros, 0.18% below the figure achieved between January and June 2018.

The six banks listed on the Ibex 35 increased their recurring income (net commissions and interest margin) by 5.76% in Spain in the year 2018 as a whole compared to the previous year. According to the data of the entities, recurring revenues amounted to 27,641 million euros in 2018, 5.76% more. The total amount of net commissions increased by 10.14%, to 9,339 million euros, while the interest margin grew by 3.66%, to a total of 18,302 million euros.

. (tagsToTranslate) javier de antonio



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