Spanish banks improve real

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canada goose clearance sale Feb 05 Six of the largest Spanish banks reported substantial loan impairment provisions to cover real estate exposures in their FY12 results last week, improving their coverage, Fitch Ratings says. This led to a significant reduction canada goose outlet online store in net income or losses, despite better than expected revenues and strict cost control. Real estate exposures remain the key weakness for the bulk of the Spanish banks and there is also a risk of a continued spill canada goose outlet ontario over of impaired loans into other segments, especially as canada goose outlet online reviews we believe the economy will contract further this year. canada goose clearance sale

Canada Goose Parka Even the two international Spanish banks, Santander and BBVA, reported canada goose outlet houston a drop in profit of 59% and 44%, respectively. canada goose uk The decline is mainly attributable to the provisions on domestic real estate exposures. Earnings from other geographies, most notably Latin America, helped offset the charges. Both banks have been proactive canada goose outlet reviews in tackling their Spanish real estate exposures. They have accelerated the sale of these assets ahead of the canada goose kensington parka uk potentially even more challenging market that may canada goose premium outlet emerge once the Spanish bad bank, Sareb, starts its run down and disposal programme. Canada Goose Parka

Canada Goose sale Domestic revenues have held up reasonably well despite the canada goose outlet parka weak economy, lower customer volumes and bank deleveraging. Net interest income has risen at all six banks, helped by close spread management, particularly on new and rolled over loans, and carry trades on sovereign bonds at canada goose jacket outlet sale some institutions. These banks have benefited from a canada goose outlet new york city flight to quality for deposits and have been able canada goose outlet in new york to adjust pricing accordingly, despite competition for funding. Their retail focus and cross selling efforts meant commission income held up well. Costs continue to be well managed. Canada Goose sale

buy canada goose jacket cheap We estimate that canada goose outlet paypal these banks exposures to domestic real estate will canada goose outlet toronto be 40% to 50% covered. Further deterioration can be expected on the real estate portfolio, but a large scale effort has already been made with the bulk of these banks entirely complying with the two royal decree laws passed during 2012. Like the two international banks, CaixaBank, canada goose outlet website legit Banco Sabadell and Banco Popular are making substantial efforts to sell real estate exposures parked in their internal bad banks. Bankinter has much smaller exposures to real estate. buy canada goose jacket cheap

canada goose uk shop 2013 will be another very challenging year as we expect domestic GDP to fall a further 1.6%. A deterioration in the SME books canada goose discount uk and in residential mortgages can be expected getcanadagooseoutlet , considering the recession and rising unemployment. Further deleveraging resource , low canada goose outlet store quebec interest rates and large stocks of impaired assets would depress net interest income. Higher spreads on renewed loans could mitigate some of this pressure. canada goose uk shop

uk canada goose outlet Encouragingly, investor appetite for Spanish senior and covered canada goose outlet in montreal bonds from the main players has recently increased. As the issuance opportunity may be short canada goose outlet store toronto lived, most institutions continue to reduce the funding gap by shrinking loans and attracting retail deposits. But the latter may become more challenging following the recently proposed deposit rate caps. uk canada goose outlet

Canada Goose Online Banks have begun to prepay a substantial proportion of long term refinancing operation (LTRO) funds to the European Central Bank, most notably Santander. We expect the smaller players to be more cautious about the potential for market conditions to change. They are more likely to hold on to canada goose outlet woodbury the LTRO funds for insurance or even for carry trade purposes Canada Goose Online.