topics
tools
Expatica countries
Index Last Var.(%)
BEL 20 2270.63 -0.42
DAX 6788.8 0.59
IBEX 30 8902.1 0.60
CAC 40 3424.71 0.43
FTSE 100 5895.47 0.33
AEX 325.12 -0.06
DJIA 12890.46 0.05
Nasdaq 2927.23 0.39
FTSE MIB 16653.83 -0.09
TSX Composite 12497.94 -0.18
ASX 4322.6 -0.79
Hang seng 20783.63 -1.08
Straits Times 2962.77 -0.62
ISEQ 20 503.71 0.33
You are here: Home News Spanish News Banesto sees single-digit home loan growth this year

Spanish News

archive
Enlarge font Decrease font Text size


14/01/2008Banesto sees single-digit home loan growth this year

Bank's recurring earnings in 2007 climb 26 percent.

14 January 2008

MADRID - Spanish bank Banesto on Friday announced a 26.1-percent increase in its recurring net profit for 2007 and gave an upbeat message about its prospects for this year despite the recent turmoil in financial markets.

Banesto's net earnings in 2007 amounted to EUR 764.6 million, slightly below analyst forecasts. The figure excludes capital gains. Banesto booked a pretax gain in 2006 of EUR 1.18 billion from the sale of a 50-percent stake in real-estate firm Urbis. If that item is included, net profit last year would be down 47 percent from 2006 when the bank earned EUR 1.451 billion.

Banesto is the first of the Spanish banks to report earnings. Analysts were looking to gauge the impact on Banesto's earnings from the liquidity crunch sparked by the meltdown of the US subprime mortgage market in the summer of last year and a slowdown in the Spanish property sector.

Banesto's total lending for 2007 rose 20.4 percent, compared with growth of 24.5 percent in the first three quarters. The number of mortgages granted since the summer fell by 20 percent, while home loan defaults for last year increased to 0.5 percent of the total from 0.29 percent a year earlier.

"Default rates will get worse, but not too bad, and we can cope with it," Banesto Chairwoman Ana Botín said. "We're still at very, very low levels."

Botín expects mortgage lending in Spain to drop to single-digit levels this year, with total lending dropping to 10-12 percent from rates of over 20 percent at the height of the property boom. She also said the financial markets are starting to improve. "We hope (rates) will normalise in the next few months," she said.

[Copyright EL PAÍS / Adrián Soto 2008]

Subject: Spanish news


0 reactions to this article

Be the first person to add a comment

General rating: Not rated yet

Rate article:    Add my rating


0 reactions to this article

Be the first person to add a comment
Discussion Forums

English in Spain

Public (free) primary schools in Barcelona + surrounding areas.

Jobs in Spain

IFAs / FSIs / Country Managers / Confidential Introducers

Community Noticeboard Spain

Barcelona-stay updated!

Housing in Spain

Sitges, Barcelona - 5 Bedroom Villa € 1,150,000 For Sale

Jobs in Spain

“Silicon Valley Comes to Barcelona”, 24th Feb 2012

participate in the forums

Inside Expatica
Editor's Guide: Getting Started in Spain

Editor's Guide: Getting Started in Spain

Expatica's Getting Started section will provide practical information on how you can open a bank account, exchange your driving licence, improve your Spanish, and more.

Groups and Clubs in Madrid

Groups and Clubs in Madrid

Here's a guide to an extensive list of groups and clubs in Madrid for expats, from sports groups to social and family gatherings.

Groups and Clubs around Spain

Groups and Clubs around Spain

A brief introduction to our Tax section for Spain, from help with inheritance tax to accounting advice.

Groups and Clubs in Barcelona

Groups and Clubs in Barcelona

Here's a short introduction to our Banking section for those living in Spain, from what to ask the experts to opening a Spanish bank account.