CONSOLIDATED INCOME STATEMENT
Spanish banks recorded attributable profit of €11.156 billion in the first nine months of 2021, compared with losses of €8.390 billion in the same period of the previous year due to the significant effort in provisions and write-downs to address the effects of the crisis resulting from the pandemic.
The slight decline in net interest income was offset by higher net fee and dividend income, while gross income, which represents total income earned, remained at levels similar to those of 2020.
Operating expenses decreased by 2.1% year-on-year, enabling an improvement in the cost-to-income ratio to 47.5%, one percentage point lower than in the same period of the previous year.
The effort in provisions and write-downs, which led to the 2020 losses, has been considerably reduced this year, bringing return on equity (ROE) to 7.2% in the third quarter.
CONSOLIDATED BALANCE SHEET
The aggregate consolidated balance sheets of Spanish banks as of 30 September stood at €2.73 trillion, representing an increase of 1.36% compared with the same date in the previous year.
Customer lending increased by 0.7% year-on-year, with the non-performing loan ratio remaining at 3.6%, the lowest level since 2009, while coverage stands at 74%, compared with 76% a year earlier.
Customer deposits increased by 2.5% compared with September 2020, bringing the loans-to-deposits (LTD) ratio to 101%, two percentage points lower than in September 2020.
The trend from previous quarters of an increase in the net lending position with central banks and credit institutions continues and, in aggregate terms, rises to almost €95 billion as of 30 September.
Equity exceeds €175 billion, with annual growth of 5%, and represents 6.5% of total consolidated assets, compared with 6.3% a year earlier.
The highest-quality capital ratio (CET1 fully loaded) rises to 12.7%, compared with 11.8% twelve months ago.
