Bank profits rise 28pc

19th August 2004, Comments 0 comments

19 August 2004, MADRID — Banks in Spain raised their net profits by 28.4 percent in the first six months of the year to EUR 4.134 billion.

19 August 2004

MADRID — Banks in Spain raised their net profits by 28.4 percent in the first six months of the year to EUR 4.134 billion.

The big increase over the same period of 2003 was especially due to growth in credit investments, cost controls and a lower level of insolvencies said the Spanish Banking Association (AEB).

Although the banks continued to be affected by the weakness of the US dollar and the main Latin American currencies against the euro, this effect had begun to slacken.

Spain's two domestic banking giants, Grupo Santander and BBVA, accounted for nearly 79 percent of the sector's total profits – at EUR 3.265 billion.

A healthy business market saw banks increase their income through commissions by 8.2 percent to roughly EUR 5 billion, although profits on financial operations and foreign exchange fell by 25.9 percent.

The sector's profits before tax were EUR 6.207 billion, nearly 20 percent up on the first half of 2004.

[Copyright EFE with Expatica]

Subject: Spanish news

 

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