Spain’s Listed Banks Recorded Proceeds Of €10,700M From House Sales In 2016

9 February 2017 – Expansión

Last year, Spain’s listed banks recorded revenues amounting to €10,700 million from the sale of properties. Sabadell was the most active entity, generating €2,691 million from such operations, representing an annual increase of 50%.

Santander sold assets for €2,066 million, in line with the revenues it recorded from this activity in 2015 (€2,070 million), whilst Popular’s turnover from these sales amounted to €2,024 million.

Below the €2,000 million mark, BBVA sold properties for €1,971 million and CaixaBank for €1,337 million. Bankia and Bankinter, which were less active, recorded revenues of €481 million and €135 million, respectively, from property sales.

Losses

Overall, these entities recorded combined losses in their real estate businesses of €6,132 million last year, up by 54% compared to the previous year, when their combined losses amounted to €3,973 million. These figures do not include Bankia, which does not disclose the break down of the results of its real estate activity in its income statement.

Popular recorded the greatest losses (€3,178 million), whereby tripling its losses from 2015. The second largest loss maker was CaixaBank (€1,125 million), although it followed a downwards trend, down by 6% YoY. Sabadell closed the year with losses of €908 million, up by 7.6% compared to the previous year, whilst BBVA recorded 20% higher losses, at €595 million. Santander reduced its real estate losses by 22%, to €326 million.

The clean up carried out by Popular during the final quarter of last year, which generated losses of €2,456 million, combined with those recorded during the first nine months of the year (€721 million) meant that the entity accounted for more than half of the losses recorded by all of the listed banks in their real estate activity. Popular has set in motion plans to create a bad bank, into which it will dump its damaged assets, although the next chapter of the future of that project will not be written until 20 February, when Emilio Saracho takes over as Chairman of the entity.

At the end of December 2016, Popular had recorded real estate provisions amounting to €13,442 million, spread in equal amounts between loans and properties. CaixaBank’s portfolio of foreclosed assets amounted to €6,256 million, following a reduction of €1,003 million. That entity recognised provisions amounting to €656 million last year. BBVA’s losses in its real estate activity include €136 million relating to the reallocation of provisions. Its real estate exposure amounted to €10,307 million, down by 16.8% compared to a year ago.

Original story: Expansión (by Elisa del Pozo)

Translation: Carmel Drake

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