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☆ Collapse of FTX should serve as reminder of risks of crypto assets, ECB's De Cos says
▼ + stars: | 2022-11-16 | by ( ) www.reuters.com time to read: 1 min

MADRID, Nov 16 (Reuters) - The collapse of crypto exchange platform FTX should serve as a reminder for clients of the risks crypto assets entail, European Central Bank policymaker Pablo Hernandez de Cos said on Wednesday. "We hope that the events we have recently experienced will make citizens aware of the risks associated with these cyrpto assets," De Cos said when asked about FTX's collapse. The exchange, which had been among the world's largest, filed for bankruptcy protection on Friday in one of the highest-profile crypto blowups after panicked traders withdrew $6 billion from the platform in just 72 hours and rival exchange Binance abandoned a rescue deal. Reporting by Jesús Aguado and Emma Pinedo; editing by David LatonaOur Standards: The Thomson Reuters Trust Principles.

☆ Spain expects to agree with banks mortgage relief measures by end of week
▼ + stars: | 2022-11-15 | by ( ) www.reuters.com time to read: +2 min

[1/2] A general view shows houses, amid the coronavirus disease (COVID-19) outbreak, in the old town in Ronda, southern Spain, April 12, 2020. REUTERS/Jon NazcaMADRID, Nov 15 (Reuters) - Spain's government expects to reach by the end of this week an agreement with banks on mortgage relief measures to help vulnerable households and middle-class clients cope with rising borrowing costs on such loans, the economy minister said. She said the government and banks were working on expanding and improving an existing industry-wide code of good practice to support vulnerable groups. In Spain around three-quarters of the population are homeowners, with most opting for floating-rate mortgages. Reporting by Jesús Aguado, editing by Andrei Khalip and Emelia Sithole-MatariseOur Standards: The Thomson Reuters Trust Principles.

☆ ECB not pre-committed to raise rates by 75 bps again, De Cos says
▼ + stars: | 2022-11-11 | by ( ) www.reuters.com time to read: 1 min

MADRID, Nov 11 (Reuters) - The European Central Bank has not pre-committed to make another 75 basis-point increase at its next policy meeting, policymaker Pablo Hernandez de Cos said on Friday. "The fact that we have raised rates by 75 basis points ... does not mean that this will be the future pattern, it will depend on the data," De Cos said. The ECB has been raising its rates at record speed but it is still buying bonds to replenish its 5-trillion-euro ($5.07 trillion) stimulus portfolio, which has a dampening impact on long-term bond yields. Reporting by Jesús Aguado and Emma Pinedo; editing by Andrei KhalpiOur Standards: The Thomson Reuters Trust Principles.

☆ Bank of Spain urges lenders to preserve capital as risks mount
▼ + stars: | 2022-11-11 | by ( Jesús Aguado | ) www.reuters.com time to read: +2 min

MADRID, Nov 11 (Reuters) - Spanish banks need to preserve capital and keep a lid on mortgage loan costs to cope with a potential deterioration of the economic outlook, the Bank of Spain warned on Friday. The central bank said that risks to financial stability had increased since its last report on the matter in April. Though Spanish banks, including Santander (SAN.MC) and BBVA (BBVA.MC), posted better-than-expected third-quarter earnings but they were overshadowed by higher loan-loss provisions. Spanish lenders have been increasing their shareholder remuneration through higher pay-outs averaging 40%-60%, share buy-backs or a combination of both. Echoing the ECB's non-binding opinion on Spain's banking tax proposal, the Bank of Spain said the levy would hurt banks' profitability and capital generation in 2023-24.

☆ Spain's Iberdrola to invest $47 bln in energy transition in 2023-25
▼ + stars: | 2022-11-09 | by ( ) www.reuters.com time to read: +4 min

Some 17 billion euros of the 47 billion total investment will go on renewables. In its last strategy update, Iberdrola said it planned to invest 75 billion euros in renewable energy, grids and retail operations from 2020-2025. Iberdrola currently has 40 GW of renewables capacity, new chief executive Armando Martinez told the compay's capital markets day in London. Net profit should increase to 5.2-5.4 billion euros by 2025 from an expected 4-4.2 billion euros in 2022, Iberdrola said. It also aims for earnings before interest, taxes depreciation and amortisation (EBITDA) of 16.5 billion-17 billion euros by 2025, up from 13 billion euros in 2022 and above analyst consensus of 12.6 billion euros.

☆ ECB warns of potential impact on economy from Spanish banking tax
▼ + stars: | 2022-11-03 | by ( Jesús Aguado | ) www.reuters.com time to read: +3 min

Two sources with direct knowledge of the matter told Reuters last month that the ECB was set to warn of the adverse impact on Spanish banks' solvency and of a higher cost of credit. In that context, lenders could become "less able to absorb the potential downside risks of an economic downturn." The banking tax includes a 4.8% charge on banks' net interest income and net commissions above a threshold of 800 million euros, leaving out smaller Spanish lenders and the units of foreign banks in Spain. On this issue, the ECB said that the application of the levy only to certain Spanish lenders could distort market competition and impair a level playing field. Though the Spanish legislation bill aims to avoid passing on the costs to clients, the ECB said it "generally expects lenders to reflect in loan pricing all relevant costs, including tax considerations".

☆ ECB's opinion on Spanish banking tax will be issued "very shortly", De Cos says
▼ + stars: | 2022-11-03 | by ( ) www.reuters.com time to read: 1 min

MADRID, Nov 3 (Reuters) - The European Central Bank will issue its non-binding opinion on Spanish banking tax proposal "very shortly," policymaker Pablo Hernandez de Cos said on Thursday. Two sources with direct knowledge of the matter told Reuters last month that the ECB was set to warn of the adverse impact on Spanish banks' solvency of a proposed tax on the sector and of a higher cost of credit in the upcoming non-binding opinion. Reporting by Emma Pinedo Editing by Jesus AguadoOur Standards: The Thomson Reuters Trust Principles.

☆ ECB should hike interest rates further to combat inflation, Nagel says
▼ + stars: | 2022-11-03 | by ( ) www.reuters.com time to read: 1 min

MADRID, Nov 3 (Reuters) - The European Central Bank should hike interest further to bring inflation back under control, policymaker Joachim Nagel said on Thursday. "The ECB should not refrain from further hike rates, we need to increase them further to bring inflation down to our mid-term target," Nagel said at an event in Madrid. He did not however want to speculate when the path of higher borrowing costs would end and added that the euro zone was in a different situation to that of the United States. Reporting by Jesús Aguado; editing by Emma PinedoOur Standards: The Thomson Reuters Trust Principles.

☆ ECB will need more rate hikes to fight off inflation, De Cos Says
▼ + stars: | 2022-11-02 | by ( ) www.reuters.com time to read: +1 min

MADRID, Nov 2 (Reuters) - The European Central Bank "will need additional interest rate increases" to fight off inflation even considering the growing likelihood of a euro zone recession, policymaker Pablo Hernandez de Cos said on Wednesday. "But to what level and how fast will depend on the inflation outlook, which, in turn, depends on the growth outlook and therefore includes the higher probability of recession that we are now estimating," De Cos, who also heads the Bank of Spain, said in a statement. While the bank last week dropped the reference in its policy statement to likely rate hikes at "several" more meetings, ECB President Christine Lagarde appeared to revert back to this terminology after raising the deposit rate on Oct. 27 by 75 basis points to 1.5%, its highest level since 2009. Inflation in the euro zone accelerated to 10.7% in October and is expected to stay above the ECB's 2% target through 2024. Reporting by Jesús Aguado; editing by Andrei KhalipOur Standards: The Thomson Reuters Trust Principles.

☆ Analysis: Catalonia's economic muscle weakened five years after separatist bid
▼ + stars: | 2022-10-27 | by ( Joan Faus | ) www.reuters.com time to read: +5 min

The fallout serves as a cautionary tale for the independence movement in Scotland, which is pushing to hold another referendum next year on breaking away from the United Kingdom. Junqueras was Catalonia's deputy government head when the region held an independence referendum banned by a Spanish court. Junqueras insisted the Catalan separatist movement is still strong, pointing out the increase in pro-independence lawmakers in the past decade. Like Scotland, Catalonia's independence movement is now pushing for another referendum, this time with the approval of the Spanish government. But as with the UK government and Scotland´s bid, Spain has so far rejected the proposal.

☆ Sabadell Q3 net beats forecasts on lending income, lower costs
▼ + stars: | 2022-10-27 | by ( Jesús Aguado | ) www.reuters.com time to read: +2 min

The country's fourth-largest bank in terms of total assets reported a net profit of 317 million euros ($319.06 million) for the July-September period. Analysts polled by Reuters expected a net profit of 221 million euros. At a group level, third-quarter net interest income rose 10% from a year earlier to 965 million euros, compared with analysts' forecast of 917 million euros, and it also rose 7.4% against the previous quarter. Against that background, Sabadell revised the bank's net interest income guidance up to a double-digit growth for 2022 from a previous mid-single digit growth forecast on the back of higher interest rates. Total costs fell 30% in the third quarter against the same quarter a year ago though were 1% higher compared to the previous quarter.

☆ Unicaja's Q3 net profit rises 77% from a year ago on higher lending, fees
▼ + stars: | 2022-10-27 | by ( ) www.reuters.com time to read: 1 min

MADRID, Oct 27 (Reuters) - Spain's Unicaja (UNI.MC) on Thursday said that its net profit in the third quarter rose 77% against the same period of 2021 thanks to rising income in fees and lending as well as lower costs. The lender reported a net profit of 95 million euros ($95.69 million) in the July to September period. Analysts polled by Reuters expected a net profit of 93 million euros. Unicaja's net interest income (NII), or earnings on loans minus deposit costs, rose 4.9% year-on-year to 263 million euros ($264.92 million) in the third quarter, as higher interest rates are boosting retail lenders' margins. Analysts expected NII to come in at 268 million euros.

☆ Iberdrola profit boosted by US, Brazil, offsetting Spanish woes
▼ + stars: | 2022-10-26 | by ( David Latona | ) www.reuters.com time to read: +3 min

Iberdrola reported a net profit of 3.1 billion euros ($3.09 billion) for the January-September period and said geographical diversification allowed it to maximise growth and benefit from positive currency swings. In Spain, however, profit fell by 14% as summer droughts hampered hydroelectric generation, which was almost 48% lower than last year, Iberdrola said. Galan said Iberdrola was not exposed to Russian gas, adding that world leaders have now realised gas market dynamics were "causing the problem and electricity is the solution". The company has invested 7.58 billion euros so far this year, a 14.2% increase compared to the same period in 2021. Iberdrola also reiterated its forecast for an annual net profit of between 4 billion and 4.2 billion euros and announced a 5.9% higher interim dividend of 0.18 euros per share, payable in January 2023.

☆ Spain's Santander Q3 profit rises 11% compared to same period a year ago
▼ + stars: | 2022-10-26 | by ( ) www.reuters.com time to read: 1 min

MADRID, Oct 26 (Reuters) - Spain's Santander (SAN.MC) said on Wednesday its net profit in the third quarter rose 11% compared to the same period a year ago as higher revenues across its markets offset a rise in loan loss provisions and costs. The euro zone's second-biggest lender in terms of market value booked a net profit of 2.42 billion euros ($2.41 billion), up from 2.17 billion euros in the same quarter last year. Analysts polled by Reuters expected Santander to post a net profit of 2.19 billion euros. ($1 = 1.0045 euros)Reporting by Jesús Aguado, editing by Inti LandauroOur Standards: The Thomson Reuters Trust Principles.

☆ Santander's profit tops forecast despite provisions, costs
▼ + stars: | 2022-10-26 | by ( Jesús Aguado | ) www.reuters.com time to read: +2 min

The euro zone's second-biggest lender by market value booked a net profit of 2.42 billion euros ($2.41 billion), up from 2.17 billion euros in the same quarter last year. Analysts polled by Reuters had expected a net profit of 2.19 billion euros. Net loan-loss provisions rose 24% year-on-year to 2.76 billion euros against an uncertain macroeconomic backdrop, mirroring the picture at lenders in the United States. Santander's diversification, especially in Latin America, has helped it cope with tough conditions for lenders in Europe since the financial crisis. Revenues climbed 13% year-on-year to 13.51 billion euros, more than the 13.15 billion euros analysts had forecast.

And Italy's UniCredit (CRDI.MI) raised its 2022 profit goal, helped by higher interest rates and lower loan loss provisions that also drove quarterly earnings above forecasts. For years, banks bemoaned ultra loose monetary policy, but now higher interest rates means banks can start to benefit from the increased gap between what they charge borrowers and what they pay savers. Standard Chartered's third-quarter profit surged 40% as higher interest rates boosted the emerging markets-focused bank's income, giving it ammunition to upgrade its revenue outlook despite a weakening global economy. For Santander, higher loan loss provisions in key markets like Brazil and the United States overshadowed better than expected third-quarter earnings. While benefiting from higher interest rates, banks also face the unwinding of a scheme that buoyed their profits for years.

☆ Analysis: Decade of central bank largesse haunts taxpayers as losses loom
▼ + stars: | 2022-10-25 | by ( Francesco Canepa | ) www.reuters.com time to read: +6 min

Signage is seen outside the European Central Bank (ECB) building, in Frankfurt, Germany, July 21, 2022. The British government, which received 120 billion pounds in profits from the BoE since 2009, has already earmarked a transfer of 11 billion pounds for the central bank. It will contribute to losses of around 40 billion euros for euro zone central banks next year, according to Morgan Stanley. They have all warned of upcoming losses and the Dutch central bank openly said it risked needing a bailout, although finance minister Sigrid Kaag later cautioned this was "not yet on the table". By contrast, central banks with less cash and higher-yielding bonds in Italy, Spain and Greece were likely to fare better.

☆ Barcelona-Marseille pipeline could take 4-5 years to build, Spain says
▼ + stars: | 2022-10-21 | by ( David Latona | ) www.reuters.com time to read: +3 min

The joint project between Spain, Portugal and France, agreed on Thursday and dubbed BarMar, replaces the cross-Pyrenees MidCat pipeline that Spain had said could be ready by 2023 but was vetoed by France. All three countries said the pipeline should also temporarily allow for the transport of some natural gas to help alleviate Europe's supply problems stemming from Russia's invasion of Ukraine. She added that the connections between Spain and France, as well as between the entry point in Marseille and the hydrogen pipeline network in central Europe, are yet to be completed. Fernando Garcia, a London-based utilities analyst at RBC Capital Markets, said the BarMar route would "clearly" not fix Europe's short-term supply woes. The BarMar pipeline would also substitute an underwater gas link between Spain and Italy that was once considered, Ribera told Spanish TV station Antena 3 earlier on Friday.

☆ Spain's banks seek to extend mortgage lifespans for vulnerable households
▼ + stars: | 2022-10-20 | by ( Jesús Aguado | ) www.reuters.com time to read: +3 min

MADRID, Oct 20 (Reuters) - Spanish lenders are open to extending loan repayments for up to five years for vulnerable households that experience a rise of at least 30% in variable mortgage costs, a draft of the proposal seen by Reuters on Thursday showed. Banks would not have to automatically set aside provisions as a consequence of the loan extensions, according to the draft. "Households earning not more than 24,300 euros a year would be eligible to extend the lifespan of mortgage repayments," one of the sources said on Wednesday. Once the extension of the mortgage term to final maturity has been agreed, the outstanding loan would continue to be repaid in new instalments, according to the draft. "As it stands with this proposal, you may even end up paying more interest in the long term", Suarez said.

In Spain, six vessels were frozen following sanctions imposed after Russia's invasion of Ukraine in February. The "majority" of the owners are paying their maintenance, crew, docking and insurance fees, a source with knowledge of the matter said. In March, Spain's Prime Minister Pedro Sanchez vowed, when announcing the freezing of one yacht in Spain, to hit Putin's allies "decisively" and "hard". read more read moreProposals by the United States and European Union to sell seized Russian assets and give the proceeds to Ukraine have stalled. In France, five yachts have been frozen.

☆ Spain's banks seek extending lifespan of mortgages for vulnerable households
▼ + stars: | 2022-10-19 | by ( Jesús Aguado | ) www.reuters.com time to read: +2 min

MADRID, Oct 19 (Reuters) - Spanish lenders are open to extending loan repayments for vulnerable households that experience a rise of at least 30% in variable mortgage costs, three sources with knowledge of the matter said on Wednesday. The proposal is part of a wider set of measures aimed at helping exposed families cope with an increase in interest rates and rising cost of living that banks are discussing with government. "Households earning not more than 24,300 euros a year would be eligible to extend the lifespan of mortgage repayments," one of the sources said. The banking association AEB and the savings banks association CECA declined to comment. "As it stands with this proposal, you may even end up paying more interest in the long term", Suarez said.

☆ ECB set to warn of risks in its non-binding opinion on Spanish tax proposal, sources say
▼ + stars: | 2022-10-18 | by ( Jesús Aguado | ) www.reuters.com time to read: +4 min

MADRID, Oct 18 (Reuters) - The European Central Bank is set to warn of the adverse impact on Spanish banks' solvency of a proposed tax on the sector and of a higher cost of credit in an upcoming non-binding opinion, two sources with direct knowledge of the matter said. The central bank's opinions describe the risks from any proposed measures on credit or financial stability. Internal calculations undertaken by those experts believe that the tax could hit the Spanish banks' capital by an average of around 0.5 percentage points. "It affects solvency and financial stability but will not ultimately put Spanish banks at risk," the first source said. Though bankers have said that legally challenging the bill was an option, a senior executive from a top Spanish bank recently told Reuters that no legal options were being explored for now.

☆ Credit Suisse considers Allfunds disposal, Cinco Dias reports
▼ + stars: | 2022-10-14 | by ( ) www.reuters.com time to read: +1 min

MADRID, Oct 14 (Reuters) - Credit Suisse is considering selling its stake in Madrid-based tech company Allfunds (ALLFG.AS) to raise cash, Spanish newspaper Cinco Dias reported on Friday, citing unidentified market sources. The Swiss bank holds an 8.56% stake in Allfunds, worth about 380 million euros ($372 million) at the current market price, Refinitiv data shows. Register now for FREE unlimited access to Reuters.com RegisterShares in Allfunds, which provides tech services to asset management companies, have declined 58% this year. A spokesperson at Credit Suisse declined to comment and an Allfunds representative did not respond immediately to a request for comment. ($1 = 1.0212 euros)Register now for FREE unlimited access to Reuters.com RegisterReporting by Inti Landauro Editing by Jesús Aguado and David GoodmanOur Standards: The Thomson Reuters Trust Principles.

☆ Caixabank proposes sector-wide freeze in variable mortgage costs, source says
▼ + stars: | 2022-10-11 | by ( ) www.reuters.com time to read: +2 min

MADRID, Oct 11 (Reuters) - Caixabank (CABK.MC), Spain's biggest lender by domestic assets, has proposed a sector-wide measure to cushion the rise in payments on variable mortgage contracts for a year, a source with direct knowledge of the matter said on Tuesday. The source said that the proposal was being debated among lenders and could still change. Register now for FREE unlimited access to Reuters.com RegisterThe Spanish banking association (AEB), the country's economy ministry and Caixabank declined to comment. The association for savings banks CECA, of which Caixabank is a member, was not immediately available for comment. Caixabank is the market leader in the mortgage business in Spain with a 25.4% share as of June.

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