The bank could compensate for the “tax” with a smaller contribution to the guarantee funds.

Madrid, January 24 (EFECOM) – Spanish banks will continue to break profit records this year, and this will increase the collection of the emergency tax that is levied on income earned in Spain, which the sector could offset with lower contributions to the Fund. European Union (EU) guarantee and approval.

That’s one of the conclusions of a report published this Wednesday by S&P Global Ratings, which added that corporate earnings prospects remain good, not least because the loan book will continue to correct its prices until mid-year.

Santander, BBVA, CaixaBank, Sabadell, Bankinter and Unicaja are forecast to earn a joint record of nearly $26 billion in 2023, up 24%, thanks to rising interest rates and despite an emergency tax, according to forecasts from analysts consulted by EFE. , which cost them more than $1,100 million.

High profitability will allow banks to maintain payments and accumulate additional capital, the study adds.

While there will be some asset quality concerns, most likely among small and medium-sized enterprises (SMEs) and consumer loans, the deterioration will be contained and the cost of risk will be close to 50 basis points, the same as in 2023.

In terms of key risks, the report cites, among other things, the possibility that economic growth will be weaker than expected, leading to rising unemployment and increasing asset quality concerns.

Likewise, financing conditions could be tightened further or for a longer period of time, making access to financing more difficult and expensive and potentially causing financial problems, he adds.

He also mentions the central government’s lackadaisical commitment to fiscal consolidation, which will keep public debt levels high and reduce the scope for economic assistance when needed.

Finally, the report mentions cyberattacks that can disrupt operations, impact bank reputations, and have financial consequences for affected banks. EFECOM

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