CDM | Spanish banks achieved an annual return on equity of 12.3% in the third quarter of 2023, according to credit institution supervision statistics released by the Bank of Spain on Friday. In comparison, it was 11.92% in the previous quarter and 10.25% in the same quarter of 2022. Spain’s Europa Press reported.
This profitability figure is still far from the 14.88% recorded in the first quarter of 2021, but the Bank of Spain suggested at the time that this figure was influenced by the merger of Caixabank and Bankia. Excluding the impact of the merger, the yield would be 8.25%, making the third-quarter 2023 figure the highest since the series started by the Banque de España in 2015.
Meanwhile, the capital adequacy ratios of all financial institutions in the third quarter of 2023 were relatively stable, with the common Tier 1 capital ratio (CET1) at 13.07%, the Tier 1 ratio at 14.57%, and the total capital ratio at 16.87. was. %. However, the Bank of Spain points out that all three capital ratios have increased compared to the same period last year.
Regarding asset quality, statistics show that the bad debt ratio remained virtually stable, at 3.16% in the third quarter, compared to 3.12% in the previous quarter. Compared to the same period last year, it decreased by 4 basis points.
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