OPERATING INCOME, €16.300 BILLION, REMAINS AT LEVELS SIMILAR TO THOSE OF THE PREVIOUS FINANCIAL YEAR.
THE POSITIVE PERFORMANCE OF OPERATING EXPENSES AND ALLOCATIONS HAS MADE IT POSSIBLE TO OFFSET THE REDUCTION IN NET INTEREST INCOME AND THE NEGATIVE RESULTS FROM FOREIGN EXCHANGE DIFFERENCES.
THE SOLVENCY OF INSTITUTIONS, MEASURED IN CET1 TERMS, STANDS AT 12.6%, WITH A LEVEL OF ACCOUNTING EQUITY EQUIVALENT TO 7.6% OF TOTAL ASSETS.
CONSOLIDATED RESULTS: The attributable profit of Spanish banking groups in the first nine months of financial year 2016 amounted to €9.044 billion, 2.1% lower than that obtained in the same period of the previous year.
INCOME AND MARGINS: Operating income, at €16.303 billion, is similar to that recorded through September 2015, although slightly lower—by three basis points—on Average Total Assets. Gross income is 1.6% lower than a year earlier, mainly due to the decline in net interest income (9 basis points on ATA) and to lower results from foreign exchange differences, which were partially offset by higher results from financial operations, especially those derived from the trading portfolio.
EXPENSES AND PROVISIONS: This decrease in gross income is offset, on the one hand, by operating expenses, which represent 2 basis points less cost on ATA, and, on the other, by the reduction in allocations and provisions for insolvencies, which, while representing 0.74% of ATA, are 12 basis points lower than those made in the previous financial year.
PROFITABILITY: Below operating income, the net balance of gains or losses on sales and impairments of other assets subtracts barely three basis points on ATA, which, together with a 50% higher corporate income tax expense, means that the result for the year (ROA) stands at 0.57% on ATA, virtually the same (0.58%) as that recorded in September 2015. BALANCE SHEET: Total aggregated assets of Spanish banking groups, as of 30 September 2016, remain at €2.6 trillion, very similar to those shown on the same date a year earlier.
CREDIT AND NON-PERFORMING LOANS: Along the same lines, the volume of loans and customer deposits has recorded minimal variation over the last twelve months, with increases of around 0.3% year-on-year. The NPL ratio stands at 5.8%, compared with 6.4% in the previous financial year, with the coverage level remaining at 63% of doubtful assets.
EQUITY: As regards equity, at the end of September 2016 it rose to €198 billion, representing 7.6% of total assets, with an increase of 4.2% over the last twelve months. The CET1 ratio rose to 12.6%, 40 basis points higher than a year ago.
