The Supreme Court has cornered those institutions that included minimum limit clauses (they limit the descent of the monthly payment to a certain limit) in their mortgages.
The impact the elimination of these limits would have for the main Spanish banks (BBVA, CaixaBank, Popular ad Sabadell) would cause a reduction of their earnings in 1137 million Euros, according to a report by Credit Suisse that values the effect of the measure in 2014 and 2015.
It would also have an impact on the profit which would range between 8% and 34%, while their interest margin would be penalized from 3% to 12%, depending on the bank.
The Swiss firm has made the calculation based on the portfolio of mortgages with a higher volume than the one declared by some institutions, and therefore the global impact could be lower.
The decision by BBVA, Cajamar and NCG Banco to eliminate these clauses affects nearly half a million customers of the bank presided over by Francisco González. On the other hand, NCG Banco, with half of its credit portfolio with minimum limit clauses, will give 90000 customers very good news. The mortgages with minimum limit clauses represent 49% of the mortgage portfolio of the bank.
On the other hand, Sabadell and Popular, that defend the transparency of their agreements and do not plan to eliminate these clauses, have 12000 and 12700 million Euros, respectively, in this type of mortgages, as confirmed by those institutions.
Bankia has 4000 million Euros (out of a portfolio of 80.000 million Euros), inherited from Caja Segovia and Caja de Canarias. The impact on the results of the group would be of just 40 million Euros in one year.
La Caixa did not grant mortgages with limits, but inherited 13.000 million Euros in plots, from Cívica. (…)