José MarÃa Roldán said goodbye on Tuesday to his position as president of the Spanish Banking Association (AEB) with a prediction: "The interest rate curve will remain negative, at least, for 15 years." This has been assured during the presentation of the results of the organization in 2021, where he has also assured that despite this "complex environment" of low rates "the margins of the bank are recovering".
After handing over the baton at the head of the organization to his successor, Alejandra Kindelán, Roldán has reviewed the current situation of the sector and the balance of the last year. Despite the context, Roldán has described 2021 as "a good year for banking".
Figures
Gross margin increased by 4.5%
The large financial institutions that are partners of the AEB managed in 2021 to return to a business path similar to the situation prior to the pandemic, with an attributable profit of 15,125 million euros, compared to the losses registered in 2020.
Gross margin, which represents all revenue earned, increased by 4.5% to €78 billion due to improved net interest income and higher commission income. Two magnitudes that contributed 1,500 million each. The efficiency ratio stood at 48.1%, exceeding that of 2020.
"The shock caused by the pandemic has been less than expected. The exploitation activity has recovered from the previous level," he acknowledged. This is reflected in the evolution of non-performing loans, which has been much of what financial institutions expected. Last year they lowered the level of provisions for this concept, since those destined in 2020 did not have to be used. "Despite the moment of great volatility in which we are, it is paradoxical, delinquency rates remain very moderate," he said.
As explained by the former president of the AEB, the crisis derived from the war in Ukraine is impacting on sectors different from those that suffered the most from the pandemic, which together with the expansion of the sectors susceptible to receiving ICO credits considers that it is "an element that makes harbor a certain degree of positive sensations regarding the economic impacts".
Defaults
Delinquency, better than expected
Banking continued during 2021 maintaining a good level of loans. In total, 1.59 trillion euros were lent, almost 81,000 million more than the previous year, and the NPL ratio fell from 3.69% to 3.64%.
Although in this indicator the levels have not yet recovered those prior to the pandemic, Roldán has assured that the credit situation "is very healthy" since "most of the credits are for housing, with a stabilized evolution of consumption and a considerable increase in the liquidity position of families".
Specifically, household deposits increased by 7% as of December 31, 2021, with a balance of 1.58 trillion.
Roldán and Kindelán stage the transfer of power in the banking employers
Financial Client Defense
Uncomfortable with the Government's decision
Roldán has also transferred his opinion on the Independent Administrative Authority for the Protection of the Financial Client, which has been approved on Tuesday by the Council of Ministers. He has defended, as many other times during his term at the head of the AEB, that he is more in favor of what he calls the "Twin Peaks model" of supervision since it is more of the "European style".
That is, two organizations such as the Bank of Spain and the National Securities Market Commission (CNMV) defend the interests of financial clients. "The creation of a specific organism is more like the Anglo-Saxon model with which I feel less comfortable," he said.
Even so, he has referred his successor, Alejandra Kindelán, for a more concrete assessment of the new body once the details are known.
New Authority
Binding resolution in 90 days in amounts less than 20,000 euros
So far, what is known is that the new Independent Administrative Authority for the Defense of the Financial Client, will resolve the claims of natural or legal persons for possible breaches of rules of conduct, good practices and financial uses, as well as for abusiveness of clauses declared as such by the corresponding courts in relation to financial contracts, within a maximum period of 90 days (except in complex cases).
In addition, it will be free for users and its resolutions will be binding on the financial institution when the amounts claimed are less than 20,000 euros. While to finance this mechanism, financial institutions will have to pay a rate initially set at 250 euros for each admitted claim, which is intended to encourage the complaints and claims services of the financial institutions themselves to resolve the conflicts of citizens "in an agile way".
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