The attributed result of Spanish banking groups at the close of the first half of 2014 amounted to 6,363 million euros, up 19.5% compared to the same period in 2013. This growth in attributed profit, an increase of 1,040 million, is due to improvements in the main business margins; consequently, profitability rose by 12 basis points above that obtained on June 30 of the previous year, standing at 0.56% of average total assets (ATA). <\/p>\n
In line with the trend observed over the last two years, ATA for the period were 6.8% lower than in the first half of 2013, explaining the 438 million euro decrease in the gross margin, even though profitability recorded an increase, rising to 3.34% from 3.15% of ATA a year earlier.<\/p>\n
The evolution of the gross margin was primarily driven by a decrease in exchange rate differences, which were 827 million lower than the previous year, and to a lesser extent by a 387 million reduction in net fee and commission income, representing an annual drop of 4.6%. Conversely, strong results from financial operations were maintained, exceeding 4,200 million for the semester, mainly obtained from the trading portfolio; dividends received also improved, doubling those of the comparison semester; and, notably, there was a clear increase in the net interest margin, up by 700 million euros, driven by higher income and the containment of financial costs, which improved the profitability of this margin over ATA to 2.17% compared to 1.96% in June 2013. <\/p>\n
The intensity of the creation of provisions and allowances remained at levels similar to the previous year, at 1.05% of ATA, compared to 1.02% in June 2013. This, combined with a slight decrease in operating expenses, resulted in an operating activity profit 10.8% higher than a year ago, improving the return on average total assets for the period by 11 basis points.<\/p>\n
The improvement in the operating margin was fully transferred to the consolidated result, as non-recurring results for the semester were slightly higher than the previous year (300 million more), while better sales results for the period were offset by higher corporate income tax.<\/p>\n
The consolidated result, including minority interests, grew by 14.4% to 7,313 million euros, or 0.65% of ATA, compared to 0.53% a year ago.<\/p>\n
As of June 30, 2014, the consolidated balance sheet stood at 2.34 trillion euros, 1.2% lower than at the end of June 2013. Variations in the main asset and liability groups were significantly affected by changes in the scope of consolidation over the last twelve months, including the exit of Banco de Valencia, acquired by Caixabank in the second half of last year, and the recent incorporation of the NCG Banco consolidated balance sheet following its acquisition by the Banesco Group. <\/p>\n
Nevertheless, although year-on-year variations in balances are small, a slight increase in both customer loans and deposits has been observed in the last two quarters, even when isolating the scope effect, breaking the downward trend in balances seen until the end of 2013. As of June 30, 2014, the loan-to-deposit (LtD) ratio stood at 112%, slightly improving on the 114% recorded a year ago. <\/p>\n
The non-performing loan ratio is 8.37%, one percentage point higher than in June 2013, and coverage remained at around 58% at the close of the first half of 2014.<\/p>\n
In the last twelve months, the cash (creditor) position of Spanish banking groups continued to decline, and funds taken from central banks and credit institutions were reduced by 18% annually in net balances, leaving the financing obtained from these counterparties at 77,550 million euros, representing just 3.3% of the consolidated balance sheet.<\/p>\n
The evolution of equity continued the steady growth trend seen since the start of the crisis for Spanish banks. At the end of the first half, accounting equity amounted to 172,814 million euros, representing 7.4% of the total balance sheet, with a year-on-year growth of 4.4%. Meanwhile, the eligible capital of the five largest banking groups showed a capital ratio (Common Equity Tier 1<\/em>) of 11.21%, calculated since the beginning of 2014 under Basel III criteria. <\/p>\n The aggregate individual balance sheet of Spanish banks stood at 1.4 trillion euros, 7.6% lower than the figure recorded a year earlier. In terms of average total assets, the decline was slightly higher at 10.2%. <\/p>\n This decrease in the balance sheet is reflected on the asset side by a decline in fixed-income security portfolios of 41,940 million euros (16.5%) and a reduction in customer loans of 46,135 million, 5.8% lower than the balance in June 2013, although a slight change in trend is observed in the evolution of credit, with moderate growth so far this year of approximately 2.1% compared to December 2013.<\/p>\n Regarding liabilities, the net cash (creditor) position with central banks and credit institutions was below 100,000 million euros, an annual decrease of 35,166 million, representing a 26.3% drop compared to June of the previous year. The balance of issued securities fell by 31,498 million euros, 17.4% lower than a year earlier, and customer deposits decreased by 23,427 million, or 3.2% annually. Meanwhile, the equity of Spanish banks rose to 129,721 million, 4.5% higher than in June 2013 and representing 9.2% of the total balance sheet. <\/p>\n The aggregate individual income statements show a 13.6% annual decrease in the net interest margin and a 2.9% drop in commissions, although the last three quarters show moderate increases in both items compared to the lows recorded in the third quarter of 2013. These decreases were offset by a better performance in results from financial operations, which increased by 30.9%, and by the containment of operating expenses, which were reduced by 4.4%. Consequently, the operating margin before provisions stood at 9,234 million euros, slightly lower (1.4%) than that recorded a year earlier. <\/p>\n The amount of allowances and provisions made in the first half of the year reached 5,199 million euros, 17% lower than in the previous year, and still represents 56% of the aforementioned operating margin. This slight decrease in provisioning efforts was offset by higher corporate tax expenses and a decrease in extraordinary results. Thus, the result for Spanish banks as of June 30, 2014, stood at 3,089 million euros, practically identical (-0.2%) to the first half of the previous year, representing a 0.44% return on average total assets, compared to 0.40% in June 2013. <\/p>\n The intensity in the creation of provisions and allowances remains steady, representing 1.05% of ATA compared to 1.02% in June 2013. Eligible capital shows a capital ratio (Common Equity Tier 1) of 11.21%, calculated since the beginning of 2014 under Basel III criteria. <\/p>\n","protected":false},"featured_media":0,"parent":0,"template":"","etiquetas-prensa":[868,918,805,803],"class_list":["post-38615","notas-de-prensa","type-notas-de-prensa","status-publish","hentry","etiquetas-prensa-credit","etiquetas-prensa-deposits","etiquetas-prensa-results","etiquetas-prensa-spanish-banking"],"yoast_head":"\nINDIVIDUAL FINANCIAL STATEMENTS<\/h3>\n
Download press release with results tables<\/a><\/h6>\n","protected":false},"excerpt":{"rendered":"