- Business
- Childbirth & Education
- Legal Formalities
- Motoring
- Other
- Pensions & Benefits
- Property & Accommodation
- Taxes
- Airports and Airlines Spain
- Paramount Theme Park Murcia Spain
- Corvera International Airport Murcia Spain
- Join us for Tea on the Terrace
- When Expat Eyes Are Smiling
- Meet Wincham at The Homes, Gardens & Lifestyle Show, Calpe
- QROPS 2014
- Spain Increases IHT in Valencia & Murcia
- Removals to Spain v Exports from Spain
- The Charm of Seville
- Gibraltar Relations
- Retiro Park : Madrid
- Community Insurance in Spain
- Calendar Girls
- Considerations when Insuring your Boat in Spain
- QROPS – HMRC Introduces changes that create havoc in the market place
- QROPS – All Change From April 2012
- Liva & Laia : 15th November
Spanish retail bank Banesto reported a 25% drop in net profit earlier today, hurt by higher funding costs and rising provisions against bad loans.
Banesto, majority owned by Santander, is the first Spanish bank to report first half earnings, giving an indication of conditions for a sector fighting rising borrowing costs in line with the battered sovereign.
Spanish stocks and bonds suffered another big selloff on Monday as investors fretted over a European Union deadlock on how to involve private bondholders in a second rescue package for Greece. Spain's borrowing costs hit a euro-era high.
Bad loans rose to 4.39% of the total loan book at end-June against 4.15% at end-March, but still below the end-March sector average of 6.11%.
Banesto said its bad loan ratio was stabilizing. Parent Santander has said bad loans have peaked in Spain, where high unemployment and a collapse in the housing market has pushed up the number of people and companies unable to repay debt.
Net interest income, broadly the difference between what a bank earns on loans and what it pays for deposits, fell 11% to 769 million euros although it rose slightly on a quarterly level for the second quarter in a row.