CONSOLIDATED INCOME STATEMENT
Spanish banks recorded losses of €8,390 million during the first nine months of 2020. The positive results achieved in the third quarter of the year made it possible to reduce by €3,141 million the negative attributable result recorded through June.
Gross income fell by 7.3% compared with September of the previous year due to the narrowing of net interest income by the same percentage and the year-on-year decline of 11.3% in net fee and commission income, only partially offset by the improvement in results from financial operations.
The contraction in operating expenses, which are 8.3% lower than in the previous year, brings the cost-to-income ratio to 48.5%, an improvement compared with the 49.1% recorded in September 2019.
The substantial effort in provisions and write-downs undertaken to mitigate the effects of the crisis and its foreseeable consequences on bank balance sheets exceeds €30,000 million, more than double that of the previous year, and explains the negative results recorded in the first nine months of 2020.
CONSOLIDATED BALANCE SHEET
The aggregate consolidated balance sheet total rises to €2.69 trillion as of 30 September, up 1.8% year on year, driven by increased treasury activity with central banks and financial intermediaries and by the rise in customer deposits.
Credit remains stable (down 0.8% due to the exchange-rate effect), with non-performing loans falling to 3.6%, compared with 3.9% a year earlier. Following the extraordinary provisions made, the coverage ratio rises to 76% of doubtful assets, 9 percentage points higher than in September of the previous year.
Customer deposits grow at an annual rate of 3.9% and exceed €1.5 trillion for the first time, bringing the loans-to-deposits ratio to 103%, compared with 108% twelve months earlier.
Equity, reflecting the write-downs carried out, decreases by 13.7% over the year; however, to a significant extent this has no effect on the solvency ratio, which rises to 11.84% in CET1 (fully loaded) terms, 45 basis points higher than in September 2019.
