Tag: doubtful debt ratio

17 May 2016 – Expansión

Banco Sabadell and Bankia are the entities that have reduced their default rates by the most in the last year, by 4.18 points and 2.12 points, respectively, according to Europa Press. The entity chaired by Josep Oliu recorded a default rate of 7.5% during the first quarter of the year, which represents a decrease of 4.18 points. Most of that decrease came as the result of the acquisition of the British bank TSB, which has lower default rates than Sabadell.

Excluding the effect of that acquisition, Sabadell reduced its default rate by 2.23 points over the last 12 months (between March 2015 and March 2016) to 9.45%.

It was followed by Bankia, which has decreased its doubtful debt ratio by 2.12 points to 10.5%, in a proportion that is almost identical to CaixaBank, which reduced its default rate to 7.6%, down by 2.11 points.

Nevertheless, the entity with the best ratio in the sector is Bankinter (3.95%). The behaviour of the other large entities has been more modest, with decreases of less than one point in the last year. Santander reduced its rate by 0.89 points to 6.36%; BBVA’s rate rose by half a point from 5.9% to 6.4%, penalised by its acquisition of CatalunyaBanc. Popular barely managed to reduce its default rate by 0.64 points and continues to record the highest ratio in the large bank sector, with 12.68%.

Original story: Expansión

Translation: Carmel Drake