Madrid (EFE) to the payment of the extraordinary tax to the bank in Spain.
This result, which was above what the analysts expected, is supported by the increase in commercial activity, which translated into an interest margin of 5,642 million euros, which is the one that includes almost all the income and which grew by 43.1%, the entity informed the CNMV today.
Mexico was, for another quarter, the subsidiary that contributed the most profits to the Group, more than double that of Spain, specifically 1,285 million euros, mainly due to the higher income it obtained thanks to the increase of more than 13% registered by credits.
Less profits in Spain due to tax
In Spain, the entity earned 541 million euros, 9.5% less than a year earlier, due to the impact of the aforementioned extraordinary tax, with a credit portfolio that fell by 1.2% and stood at 169,215 million and some deposits that fell by 3.1%, up to 213,311 million.
Turkey earned 277 million euros, compared to losses of 76 million registered until March 2022, thanks, the bank explained, to the lower profit tax applied.
South America earned 184 million euros, 14.8% more, mainly due to the evolution of recurring revenues, which offset the growth in expenses, in an environment of high inflation throughout the region, and the greater needs for provision for impairment of financial assets.
Finally, the Other Businesses area obtained 92 million, 12.4% less.
Loans increase
Loans and advances granted to customers increased by 8% and stood at 373,481 million euros, with a delinquency rate of 3.3%, lower than the 4% of the previous year, and coverage to face possible insolvencies of the 82%, also better than the previous 76%.
Customer deposits totaled 395,880 million after growing 9.6%, bringing total customer resources to 556,839 million after increasing 9.5%.
In terms of solvency, the group’s “fully-loaded” CET1 ratio, which includes all the capital requirements contemplated in the regulations, stood at 13.13%, above the 12.70% of a year ago.
As for the main margins of the income statement, interest increased by 43.1%, to 5,642 million, thanks to the increase in credit activity, he detailed.
The gross margin stood at 6,958 million after improving by 29%, driven by commissions, which totaled 1,439 million (+15.8%), especially due to the contribution of Mexico and Turkey.
In this way, the net margin totaled 3,942 million after increasing by 38.6%, and discounting global operating expenses of just over 3,000 million, which grew by 25.7%, affected by high inflation in all geographies where the entity operates.