The European Central Bank has raised capital requirements for Spanish banks due to the countercyclical buffer, which amounts to around €15 billion. The major banks already comfortably meet the new levels.
The European Central Bank has increased capital requirements for Spanish banks by several billion euros, a decision stemming from the Bank of Spain. As reported by La Vanguardia, the aim is to strengthen the countercyclical buffer, a reserve that the ECB reviews annually to address potential economic downturns. This time, the increase approaches half a percentage point in some cases.
The major banks have been announcing their new capital requirements of highest quality (Cet1), measured against total assets, this week. BBVA rises from 8.9% to 9.36%, CaixaBank from 9.12% to 9.47%, Sabadell from 8.85% to 9.24%, and Bankinter from 8.47% to 9.06%. Santander is expected to announce its changes today.
The measure incorporates the increase of the countercyclical buffer to 1% of assets, which represents about €15 billion. This amount no longer counts as excess capital and will not be available for dividend distribution or acquisitions.
Nevertheless, the banks comfortably meet the requirements. BBVA has a Cet1 of 12.9%, CaixaBank 12.53%, and Sabadell 13.2%. The difference from what is required is in the tens of billions of euros, so it does not affect their shareholder remuneration plans.
In concrete figures, BBVA had at the end of the first half about €54.626 billion of highest quality resources against total assets of €423.927 billion. The ECB now requires a minimum of €39.927 billion, up from the previous €37.729 billion, meaning an additional €1.950 billion in buffer. For CaixaBank, the increase is €923 million, and for Sabadell, €275 million.
The consensus among analysts expects that listed Spanish banks will exceed €29 billion in profit by September, a 15% increase compared to the same period last year. It will again be a record result.
You may also like
