Euroresiuk

Spanish savings banks earnings down

Consolidated savings banks partnerships operating in Spain made a net profit of 3,226million euros between January and September 2010 which is 31.6% less than for the same period last year.

According to information released by the Spanish Confederation of Savings Banks (CECA) in advance of a report due to be published on the sector’s accounts the average balance of the sector is around 1.29 billion euros and yearly growth is 1.6% in contrast with the evolution of GDP and despite deterioration in the Spanish economy. It also stated that the sector is continuing to apply a policy of ‘maximum prudency’.

The interest margin which is measured by the difference between interest obtained and interest paid was en 11,375 million euros. This is 25.7% less than a year ago due in the most part to low interest rates during the first 9 months of 2010 compared to the same period last year.

Between January and September Spanish savings banks maintained personnel costs at practically the same level and cut administrative costs by 2.

7%.

The results of consolidated savings banks partnerships operating in Spain were 3,878 million euros before tax – 34.9% less than in 2009. Following tax on profit the results for the first 9 months of 2010 were 3,694 million euros – 28.1% less than for the same period last year.

CECA has not provided any information on levels of defaulting on loans. However according to the latest figures available defaulting was 5.47% which represented a rise of 29 hundredths.

Credit fell by 1.3% at the close of September compared to last year at 894,197 million euros and deposits fell by 1.8% at 784,757 million euros.