In Spain, the banking industry is thriving, with national giants BBVA and Caixabank both reporting significant profits boosts in Q2 2024.
In the first six months of the year, BBVA saw a 38% increase in its net profit compared to the same period in 2023, driven by robust performance in domestic market. The bank is also eyeing a strategic move to acquire smaller rival Sabadell, aiming to reduce its dependency on Mexico. We reported on this back in May.
Similarly, Caixabank announced a 30.3% growth in its net profit, buoyed by increased revenue from lending activities. Meanwhile, the positive financial trend extended beyond banking: construction giant Ferrovial’s first-half profit nearly quadrupled due to strong results in its US and Canadian toll highway business, and real estate firm Inmobiliaria Colonial returned to profitability as asset values appreciated.
What does this mean?
The impressive results posted by BBVA and Caixabank are an indicator of a healthy and thriving financial sector, which is now likely to attract more investor interest. With BBVA planning a major acquisition and Caixabank boosting lending income, both banks are positioning themselves for long-term growth.
These moves are significant given the global economic uncertainties, indicating that Spanish banks might offer some refuge for investors seeking stability.