The banks of the Spanish Banking Association have demonstrated their strength in an environment of constant change and uncertainty, shaped by geopolitical events that have contributed to a sharp rise in inflation and the return to normality in central banks’ monetary policy.
Institutions are facing the new monetary and financial environment with a sound and sustainable business model. A diversified and profitable retail commercial banking sector for which 2022 was a year of healthy growth, driven by an increase in lending and customer deposits, which reached a record balance of €1.7 trillion.
Despite the complexity of the environment, non-performing loans remain at 3.4% for both corporate and household lending, the lowest level since the financial crisis, with high coverage close to recent highs. In addition, the sector has improved its profitability, with an ROE of 10.9%, which strengthens its capacity to provide credit and generate wealth and employment, remunerate its more than 5 million shareholders, and pay taxes that help sustain the welfare state.
Thanks to their strength and social commitment, AEB banks have provided solutions to the challenges facing the country, with measures to improve services for older people and ensure full financial inclusion in rural Spain, as well as the agreement to ease the mortgage burden for households in difficulty.
