Abanka will triple its profits in 2023 amid criticism from the president of the bank tax

In 2023, Abanca made a profit of 711.3 million euros, three times more than in 2022 (217 million euros). The company emphasizes that the year was marked by business dynamism. retail and for a “solid” financial profile. At a press conference, Abanca President Juan Carlos Escote noted that, in addition to “undoubted good governance,” the numbers were due to the “resilience” of the economy and the “strength” of employment.

For this reason, according to the head of the company that inherited the Galician savings banks, he assures that profitability has increased, reports Europa Press. Escotet also spoke of “containing” inflation and growing gross domestic product (GDP) “above expectations.”

The organization, the heir to the defunct Galician savings banks, rescued for 9 billion public euros and sold in 2013 for 1 billion to Banesco, the Escotet bank, has been profitable since its inception. Consolidated profit before tax in 2014 was €601 million and after tax €1.157 million. Last year was especially fruitful.

Escotet insists on presenting particularly positive results in its criticism of the bank tax: “The impact on credit and competitiveness is clearly harmful.” He assured that this represents a “loss of competitiveness” with the rest of European banks, which “somehow explains” that listed Spanish banks, compared to Europe, “have book value quotes lower than the sector average or European banks.” . markets. He said he hoped to negotiate with the government to abolish the tax.

Profitability indicators

Return on tangible equity (ROTE) was 16%, which “clearly” covers the cost of capital “with ease”, “despite the increase in capital costs due to new types.” A rate of 16%, which “improves the average results posted by competitors,” he says.

Abanca notes that it ranks among the top in the Spanish banking sector in terms of asset quality, with a Texas ratio of 27.5%, a default rate of 2.4% and doubtful asset coverage of 73.9%. Its total capital ratio is 16.9%, €1,499 million above regulatory requirements, and its LTD retail ratio is 84.9%.

Credit to households and businesses increased by 14% in Spain and 15.3% in Portugal, with nearly $9.7 billion in financing provided. The bank emphasizes that they paid more than 400 million euros in taxes for it.

Abanca acquired EuroBic, Portugal’s eighth bank, in 2023. Thus, it ranks seventh in Spain and Portugal. Also last year, the acquisition of Targobank was completed, increasing the bank’s presence in regions such as Andalusia, Levante and the Balearic Islands, with a particular focus on business. retail.