Ratings agency Standard & Poor (S&P) estimated that during 2015 the operative net profit of Spanish banks will rise by 25 percent, allowing entities to progressively increase their dividends without affecting their capital ratio.
S&P analysts Angela Cruz and Elena Iparraguirre expect Spanish banks to show a net profit of around 14 billion euros (15.96 billion U.S. dollars) for 2015, which is 25 percent increase on the 2013 figures. The ratings agency considers the positive tendencies for the Spanish banking system, which were first seen in 2014, will continue to progress as a result of the reduction in bad debts and higher profitability due to the continued economic recovery.
Believing that 2015 could see a slight cut in credit, Cruz and Iparraguirre conclude that the income of Spanish banks will remain stable, while credit activity will continue its slow recovery process.
"The new production is increasing, but we have to bear in mind that there are still several problems which could affect the balance," said Iparraguirre.
Worsening
macroeconomic climate, which would prevent an average growth of 2
percent in Spain's GDP until 2016, could slow down growth, though.
However, S&P are confident that the income of Spain's banks will remain stable with the granting of credit going along with the country's slow economic recovery.
The agency also emphasizes the need to complete the restructuring of Spain's banks which have received a bailout, however, they do not expect Spain to see any major collaborative operations, given that the main part of the restructuring process has been completed.
