Consolidated primary public financial statements of credit institutions (2024 Q3)
The consolidated primary public financial statements of credit institutions in Spain show an increase in total assets of 2.5% in the third quarter of 2024 compared to the previous quarter. This increase was mainly driven by an increase in loans and advances to customers, which rose by 2.7%. Deposits from customers also increased, by 2.2%.
The financial health of credit institutions in Spain appears to be stable, with a satisfactory level of capitalisation and liquidity. The average CET1 ratio, a measure of capital adequacy, was 12.5% at the end of the third quarter of 2024, well above the regulatory minimum. The average liquidity coverage ratio, a measure of liquidity, was 130%, well above the regulatory minimum.
However, the profitability of credit institutions in Spain remains low. The average return on equity was 6.2% in the third quarter of 2024, below the cost of equity for many institutions. This low profitability is due to a number of factors, including low interest rates, high operating costs, and competition from non-bank lenders.
The outlook for the Spanish banking sector is uncertain. The economic recovery is expected to continue in 2025, but the pace of growth is likely to slow. This could lead to a moderation in loan growth and an increase in bad debts. In addition, the regulatory environment is becoming more complex, which could increase costs and reduce profitability.
Main figures
- Total assets: €2.4 trillion
- Loans and advances to customers: €1.5 trillion
- Deposits from customers: €1.7 trillion
- CET1 ratio: 12.5%
- Liquidity coverage ratio: 130%
- Return on equity: 6.2%
Source
Banco de España: www.bde.es/bde/es/estadis/bsfin/bsfin_cabcred.html
Consolidated primary public financial statements of credit institutions (2024 Q3)
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