Spain's banks are the best in Europe

Spain's banks are the best in Europe

Size no longer matters in Spanish banking, The fact is that we have gone from a series of mergers and acquisitions in pursuit of economies of scale and massive cuts of staff – hidden with so-called synergies – to recording record profits, but not extraordinary ones.

The CEO of Centro said this, Hector Grisi On Wednesday: “We don’t want to be the biggest bank where we operate, but the most profitable bank.”

Cesar Gonzalez-Bueno CEO of Sabadell, spoke along these lines on Thursday and assured that, even if they wanted to buy, the problem is that there are currently no banks for sale. Logically, as soon as the price of money becomes normal, the general banking business has regained its glory and there is no need to merge, leave alone to be absorbed.

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In short, being a big bank does not guarantee anything and neither does being the largest. For example, French BNP Paribas The eurozone’s largest bank by assets earned 10,975 million euros in 2023, 11.4% more, and that’s very good, but on the day it presented the results – Thursday, February 1 –, the price dropped 10% at the beginning of the session. This was due to its weak profitability forecasts, which include RoTE (return on tangible equity) reaching 12% in 2026, which is still a toast in the sun and confirmation that current profitability is on the floor.

If we look at the largest German banks, things don’t change much. Deutsche Bank Despite earning 6% more in 2023, it earned 16% less (4,212 million euros), i.e. up to 28,879 million. Biggest German bank lags behind in profitability as it closes in December 2023 repetition 7.4% compared to 9.4% last year. very badly. In fact, the unit has announced workforce adjustments of 3,500 employees.

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Of course, if we look at the profitability of the two big Spanish banks, santander and bbva, We realize where we are compared to the big European banks. First, who presides ana botin Closes 2023 with a ROT of 15.1%, while BBVA carlos torres He did it with a rote of 17%. In both cases, well above French BNP Paribas and German Deutsche Bank.


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