As of September 2009, Spanish banking groups recorded an attributed profit of 12,709 million euros, 10.7% lower than that obtained on the same date the previous year.
Ordinary return on average total assets (ROA) was 0.86% in annual terms, slightly lower than that obtained at the close of the last financial year (0.97%). In terms of ROE (attributed result on average equity), the consolidated profit obtained was 13.9%, 1.5 percentage points less than in December 2008, despite the decrease in the amount of results in absolute values and the strong increase of 15.5% in average balances experienced in accounting equity.
Regarding solvency, the quality of own funds and the high BIS ratio of 13% stand out, after having increased eligible own funds by 19%; the excess of eligible resources over the minimum requirements under Basel II criteria thus stands at 50,783 million euros, 40% higher than a year earlier. As of September 30, 2009, the Tier 1 ratio reached 9.2% and core capital reached 7.7%, in both cases approximately 100 basis points higher than those published a year ago.
Total consolidated assets amounted to 2.07 trillion euros, 8.6% higher than on the same date in 2008, an increase partially due to the perimeter effect as a result of acquisitions of foreign entities and businesses carried out by Spanish banks. Loans to customers continue to grow at an annual rate of 5.1%. Non-performing loans stand at 3.6% at a consolidated level, with established coverage funds 22% higher than a year ago, representing 69% of doubtful assets.
Regarding the evolution of the income statement margins, the increases in the net interest income stand out, up 31.6% in the profit and loss account, as a result of higher business volumes at a consolidated level and the improvement in spreads, especially in wholesale markets. This favorable evolution of the net interest income has made it possible to offset, on the one hand, the sharp fall in income from investee companies—both from dividends received and from results by the equity method—and, on the other hand, the stagnation in net fee and commission income. Overall, the gross margin increased by 18% in absolute terms and reached 3.5% in terms of return on average total assets.
Operating expenses remain stable in relative terms (growing in absolute values due to the aforementioned perimeter effect), with the efficiency ratio at around 41% before provisions. The consolidated operating result recorded a 2.8% drop in the first nine months of the year, after absorbing the significant effort made in write-offs and provisions, to which a total of 15,993 million euros were allocated, 66% more than the previous year.
After non-recurring operations, whose net income has been significantly reduced compared to a year earlier, the attributed profit amounted to 12,709 million euros in the first nine months of 2009, 10.7% less in absolute values and 23 basis points less in return on ATA than a year ago.
The aggregate result of the individual profit and loss accounts of Spanish banks amounted to 9,470 million euros as of September 2009, 6.3% lower than that of the first 9 months of 2008, with a decrease of 13 basis points in the return on average total assets, which stands at 0.85% in annual terms.
The aggregate balance sheet increased by 1.8%, while loans and customer deposits remain stagnant (-0.4% and 0.0% annually, respectively). The non-performing loan ratio for other resident sectors of Spanish banks stands at 4.23% and coverage funds represent 66% of doubtful assets.
The aggregate income statement shows a 4.2% fall in gross margin due to decreases in dividend income, commissions, and results from financial operations, which are partially offset by the improvement in net interest income.
Operating expenses remain contained in absolute values (0.4% annual increase) and decrease in proportion to average total assets (down to 0.9%). The effort in allocations and provisions was 43% higher than in the previous year (48% in the case of provisions for loan losses).
After recording non-recurring results higher than those of a year earlier, especially profits from the sale of non-current assets, the result for the period stood at 9,470 million euros, a figure 6.3% lower than the previous year, representing an annual return of 0.85% on average total assets.
