2017. An industry in transformation: results and challenges

The results of Spanish banks in 2017 are the combined product of a more favourable cycle but, above all, of a sector-wide effort to clean up institutions’ balance sheets. In terms of solvency, capitalisation and profitability, Spanish banking has made considerable progress over the past four years. In the coming years, banking in Spain will face deep-rooted challenges that will require institutions to have strong strategic capabilities in order to get their future business model right. Nevertheless, Spanish banks have sufficient strengths to succeed in their endeavour to continue fulfilling their role of financing businesses and households. This was stated by the Chairman of AEB, José María Roldán, when presenting the annual results.

• Profitability is an absolute priority for the sustainability of banking activity, and we must not rely on interest rate normalisation to solve the problem.
• The reduction of non-performing assets has become a priority issue for the European authorities.
• A more stable and predictable regulatory horizon is beginning, although no less demanding for that.
• Adapting to digitalisation affects all financial institutions.
• The growing importance of non-financial risks should drive a change in banking culture.

José María Roldán, Chairman of the Spanish Banking Association

Download the 2017 results presentation of Spanish banks