SPANISH BANKING GROUPS OBTAIN A PROFIT OF 2,693 MILLION EUROS IN THE FIRST QUARTER OF 2012, WITH A DECREASE OF 27.5%<\/p>\n
HIGH RECURRENCE IN BUSINESS MARGINS OF THE INCOME STATEMENT. NET INTEREST INCOME INCREASES BY 7.2% AND OPERATING MARGIN BEFORE PROVISIONS GROWS BY 2.8% <\/p>\n
EFFORT IN WRITE-DOWNS IS, ONCE AGAIN, VERY SIGNIFICANT. ALLOCATIONS AND PROVISIONS INCREASE BY 26.3% TO 5,869 MILLION EUROS <\/p>\n
SOLVENCY RATIO IMPROVES, WITH HIGHER QUALITY CAPITAL SHOWING THE GREATEST INTENSITY. CORE CAPITAL STANDS AT 10.34%, WITH A GROWTH OF 94 BASIS POINTS <\/p>\n
The attributed profit of Spanish banking groups at the end of the first quarter of 2012 rose to 2,693 million euros, 27.5% lower than that recorded in the same period of the previous year.<\/p>\n
The decrease in results contrasts with the positive evolution of the most recurrent margins of the income statement, which is supported by the 7.2% increase in net interest income. In terms of return on Average Total Assets (ATA), this progress implies a move from 2.20% to 2.25%. <\/p>\n
The strength of the net interest income, together with the good performance of results from financial operations, offsets the poorer evolution of exchange differences and other operating results, so that the gross margin finally recorded a rise of 3.8%.<\/p>\n
This positive trend continues through to the operating margin before provisions, which totals 10,590 million and grows by 2.8% compared to the first quarter of 2011, despite the moderate increase in operating expenses (5.1%). In fact, in relation to ATA, operating expenses remained stable at 1.55%. The efficiency ratio stands at 46.2%, a level similar to the 45.6% seen a year earlier. <\/p>\n
As has been the case in recent quarters, the effort in write-downs has been very significant. The balance in allocations and impairment losses rose to 5,869 million, 26.3% higher than in the first quarter of 2011. This increase, together with lower extraordinary results, puts the attributed profit, after corporate income tax, at 2,693 million, 27.5% lower than that obtained a year earlier. <\/p>\n
At the end of the first quarter, the consolidated balance sheet of Spanish banking groups stood at 2.37 trillion euros, 6% higher than that recorded a year earlier. Meanwhile, the increase in average total assets, at 4.9%, was slightly lower than the aforementioned growth in assets. <\/p>\n
Of the 133,387 million by which the balance sheet has increased, the majority is due to the growth of loans to customers, which increased by 42,397 million, up 3.1%. Secondly, it is due to investment in fixed income, where there has also been a significant increase of 8.7% (26,185 million more), mainly materialized in the available-for-sale portfolio. <\/p>\n
Asset growth has been financed through a greater appeal to central banks, whose balance has increased by 102,540 million euros compared to March 2011. This item has more than compensated for the lower financing from other credit institutions, which was reduced by 39,107 million, and the lower balance in issued securities amounting to 4,665 million. It is important to highlight that customer deposits increased by 6,394 million, up 0.6% compared to the balance twelve months earlier. <\/p>\n
As in recent quarters, the net equity of the aggregate of Spanish banking groups has continued to increase. From March 2011 to the same month in 2012, it grew by 6.3% (9,355 million more), representing a growth 0.3 percentage points higher than the growth in assets. <\/p>\n
Solvency ratios show an improvement at all levels, with greater intensity in those measuring the highest quality capital. Thus, core capital stands at 10.34% of risk-weighted assets, 94 basis points higher than a year earlier. <\/p>\n
Regarding the individual balance sheets of Spanish banks, their aggregate amount reaches 1.56 trillion, an increase of 6.6%. As with the consolidated aggregate, the item that grew the most is central bank financing, which increased by 98,098 million. Likewise, the 6.8% increase (7,622 million euros) in net equity in the individual aggregate is noteworthy. <\/p>\n
On the asset side, investment in fixed-income securities increased by 34,735 million euros, which contrasts with the decrease in the balance of loans to customers by 16,021 million euros, that is, 1.9% less than at the close of the first quarter of 2011.<\/p>\n
In the individual income statement, the same trends as in the consolidated one are observed. On one hand, a positive evolution of recurrent margins, with an increase in net interest income of 10.4% and 1.6% in the operating margin before provisions. On the other, the greater effort made in write-downs, which increased by 61.7% (1,232 million) and puts the result for the period at 1,215 million euros, 36.7% less than that obtained a year earlier. <\/p>\n
Finally, regarding the additional write-down and capital requirements for Spanish banks in their businesses in Spain required by Royal Decree-Laws 2 and 18 of this year, it is necessary to mention the considerable reducing effect that has already begun to occur on the results of Spanish banks. However, the possibility for entities to make provisions throughout the current year, or over two years in the case of integration, will not allow for a precise and homogeneous comparative analysis of the profit and loss accounts in the coming quarters, especially below the operating margin before provisions. <\/p>\n
In this sense, Spanish banks have reported that they will deploy all necessary efforts to meet these new and extraordinary requirements through their own means, without requesting public aid.<\/p>\n","protected":false},"excerpt":{"rendered":"
The attributed profit of Spanish banking groups at the end of the first quarter of 2012 rose to 2,693 million euros, 27.5% lower than that recorded in the same period of the previous year.<\/p>\n","protected":false},"featured_media":0,"parent":0,"template":"","etiquetas-prensa":[805],"class_list":["post-38684","notas-de-prensa","type-notas-de-prensa","status-publish","hentry","etiquetas-prensa-results"],"yoast_head":"\n