Online banking profits soar by 71.4%
It wasn’t long ago that online banks in Spain accumulated losses. However, a couple of years ago online banking began to be more profitable due to an aggressive commercial policy aimed at attracting new clients and this year’s figures indicate that Spaniards are using e-banking more and more.
In the first financial quarter of 2007 Spanish online banks Inversis, Bancopopular-e, Uno-e and Openbank gained 12.32 million euros in profits which is 71.4% more than for the same period last year according to figures just released published by the Spanish Association of Banks (AEB).
The main reason for such a sharp rise in profits for online Spanish banks has been the phenomenal growth of Openbank, a member of the Santander Group, whose profits quadrupled to 4.3 million euros for the first financial quarter this year.
Inversis also experienced a substantial rise in profits of 1.58 million euros for the first quarter this year compared to just 460,000 euros in the same period in 2005.
Uno-e, an internet susidiary of BBVA, increased profits by 53.9%, to 5.24 millon in the first quarter of 2007, compared to 3.4 million for the same period last year which makes it the most profitable Spanish online bank.
Bancopopular-e, saw its profits fall and was the only online bank not to improve on last year’s performance. In fact it only registered a profit of 1.18 million euros in the first quarter of 2007 which is 56.4% less than last year.
Openbank was the clear winner when it came to savings accounts with its clients depositing 3,901 million euros, 84% more than all the other Spanish online banks put together. The online branch of Santander Consumer Finance began 2007 by rising interest rates on deposit accounts.
Uno-e came second with deposits of 1,183 million euros followed by Inversis, with 613.
5 million euros and Bancopopular-e with 331.04 million euros.
However, the online branch of Banco Popular conceded the most credit to its clients at 1,065.5 million euros followed by Uno-e which granted 967.9 million euros in credit, Openbank came far behind granting just 199.2 million euros to its clients and Inversis came last conceding just 126.6 million euros in credit.