he Benefiting from foreign subsidiaries Subordinate Major Spanish banks more 8% year on year until September. In the The first nine months of this yearThese sections They announced profits of 11.963 million In fixed euros, compared to 11.082 million over last year. However, there are clear differences. So, Mexico,Basically, and United Kingdom and TurkeyIt offset, to a lesser extent, declines in business in Brazil and the United States.
The two major financial groups, Banco Santander and BBVAThey benefited from politics Mexico’s most restrictive central bank, where the money rate is 11.25%.. Thus it became a Central American country In the first engine of the income statement of the second facility. The bank headed by Carlos Torres saw how Mexico finished the first nine months of the year Profit of 3,987 million eurosThis represents a 36.7% improvement compared to the previous year, when it generated $2,918 million. Banco Santander, which also has a presence in the country, increased its profits in the region by 33%, exceeding 1.1 billion euros.
the European subsidiaries The proportion of Spanish entities also increased Their contribution to the results of the Spanish groups Because of the boost provided by the new cycle of high rates on the Old Continent. In this regard, the European Central Bank encouraged a shift in its monetary policy in July 2022, and implemented, until the October cessation, ten successive increases in money rates, reaching 4.5%.
This translated into double-digit increases in profits thanks to the increase in net interest income. Thus, the subsidiaries of Banco Santander in Poland and Portugal ended the third quarter with combined earnings of $1,133 millionwhich represents an improvement By 92.3%. Santander Bank in Portugal saw a 68% increase in profits, while in Poland the increase was 229%. CaixabankWhich has a presence in the neighboring country through BPI, has also benefited from this new environment. Portuguese Bank It closed the first nine months of the year with an attributable result of 308 million53.4% more.
This same path has been followed in monetary policy before Bank of Englandwhich set interest rates At 5.25%, its highest level since February 2008. This had a positive impact on the accounts of subsidiaries located on the islands. Santander UK increased its profits by 9.2% to 1,243 million eurosalthough it was so Banco Sabadell benefited the most from the new rate scenario as TSB increased its results by 48.1%. Up to 152 million euros thanks to a cost containment policy and a very active mortgage commercial campaign.
TürkiyeThis is the beginning of a desoldarization process, and there is a camera in the political monetariat to control hyperinflammation, and this is a major contribution to the increase in the result of a 10.2% increase this September, with a total of 333 million euros per year. .
Latin America and the United States are faltering
South America and the United States will be the two regions that received the least benefit For those who were registered in the first nine months of last year. South America will be affected Negative sensitivity to interest rates Which some countries, such as Brazil, have while in United State In the case of Santander, it was affected by lower rental income and increased allocations to the automotive business.
to BBVA, South American Registered Profit In the first nine months of 2023, it was 20.6% lower than in the same period of 2022, i.e. 496 million euros compared to 625 million euros. In the case of the entity headed by Anna Botin, Brazil saw its results fall by 30% to 1,426 million euros. However, the bank expects it to improve in the coming months after the Brazilian Central Bank begins cutting interest rates. in Chile The decrease will be 24% to 417 million eurosThe exception will be Argentina, where profits will rise by 74% to 406 million euros.
Regarding business in In the US, the region went from leading Banco Santander’s 2021 results to becoming the fifth region. Profits fell by 42% to 865 million euros.
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