Bank results are a reflection of their solidity and also a key factor for the strength of the economy itself.
At first glance, their fundamental role in economic activity stands out as they channel financing to companies and families and provide a wide range of financial services. They are a catalyst for innovation in the economy. Innovation and adaptation to the environment are in their DNA, always for the benefit of the client.
On the other hand, their results help them strengthen themselves with more capital, thus increasing their margin to provide financing, and allow them to remunerate shareholders. Furthermore, they can contribute to public needs through the payment of taxes.
A recent PwC report (Total Tax Contribution 2021 of the main banking groups in Spain) determines that large banks contributed 11,599 million euros to the Spanish public coffers in 2021, of which 6,439 million were taxes borne. This last figure represents 51% of the total pre-tax results obtained in Spain.
To a lesser extent but also important are the dividends distributed among their shareholders, many of whom are small savers who can thus supplement their income and, in many cases, their pensions. According to our data, Spanish banks currently have more than 6 million retail savers.
Spanish banks pay more taxes than their European peers or many other sectors of the Ibex. This is relevant because being profitable is fundamental for their medium and long-term sustainability, and it is also important for society.
It is a commonly accepted criterion that taxation should not pose an obstacle to economic activity and customers. The best way to collect more taxes is by favoring activity. This is easier to understand in companies that, like banks, finance families and businesses with the aim of helping them become more prosperous.
Banks are always willing to help and, within their possibilities, they always find the best solution to society’s problems.
This was evident during COVID, when it was one of the sectors that remained open during the worst of the pandemic, while at the same time, thanks to its technological development, it was possible for everything in the economy to function precisely.
This willingness to cooperate has been seen again in the measures taken to prevent a future negative impact on the mortgage loans of the most vulnerable families in the face of rising official interest rates.
It is also evident in the response to the demand from a segment of the elderly for in-person service at branches and when solutions are found to provide an access point for those living in rural Spain.
José Luis Martínez Campuzano, spokesperson for the Spanish Banking Association
