21 days ago • Posted by William Ramstein
Spanish bank profitability has improved; credit risk needs improvement
The improved profits were in large part attributable to lower loan loss provisions. All of the five biggest banks in the country recorded lower provisions year over year in the first quarter. Spanish banks have risk exposure only to 20% of severely affected lendees, but when adding those who were moderately affected, the number bumps up to 50% risk exposure. Banks need to book additional provisions.