The banking sector has come a long way since the banking crisis of 2007/2008, but depositors and savers are still concerned about the financial health of financial institutions. One of the most fundamental qualities of a healthy bank is its safety rating. Spanish banks have been on a recovery path and some have been doing so well that they are expanding internationally. According to the global finance magazine, a bank’s safety is largely determined by the size of its asset base and its ability to generate profits continuously. This ensures that the bank is able to meet its financial obligations to customers, depositors and lenders, as well as the government. This article lists the top 10 safest Spanish banks.
1. Banco Santander
Based in Madrid, Spain, the bank has the safest ranking among Spanish banks. This ranking has been based on total assets of € 1266.3 billion as at the end of December 2014. The bank reported a net income of € 5.816 billion. Customer deposits stood at € 647.628 billion, the largest figure in the country. This could demonstrate overwhelming confidence in the bank by depositors.With a total of 3,467 branches spread out across Spain, the bank has positioned itself on an expansion path to try and reach as many Spanish citizens as possible. It’s worth noting that in 2016, Santander is celebrating its 159th anniversary as the 16th largest bank in the world.
2. BBVA (Banco Bilbao Vizcaya Argentaria)
According to the global finance magazine, this is the second safest bank on Spanish soil and the 7th largest financial institution in Europe. As at 31-dec-2014, the bank had its assets worth a total of € 651.511 billion and posted profits amounting to € 2.168 billion. Customer deposits stood at a massive €366.536 billion, again, a sign of investor confidence.
3. Banesto S.A
Founded in 1902 in Madrid, the bank has concentrated its operations on retail banking and offering credit to small and medium enterprises. As of March 2012, total assets stood at €108 billion, while customer deposits were capped at €54.6 billion. In May 2013, the bank was fully acquired by Santander group.
Unlike the preceding banks, this is a traditional savings bank with a purely domestic focus. The best has been chosen as the best private bank in Spain by euromoney, a financial think-tank.
5. Bankia S.A
Founded in 2010, the bank prides itself as the fastest growing financial giant in Spain. It has been doing relatively well in terms of profit generation and asset accumulation.
6. Banco popular espanol
With assets of € 153 billion as of March 2014, this bank boasts 120 branches across Spain and is considered financially stable by rating agencies.
7. Deutsche bank spain
Deutsche bank is among the top 10 national bank in Spain that provides investment banking, private banking , as well as serving individuals and corporate. It is also one of the best performing banks in the international scene.
Since its establishment in Spain in 1974, Barclays has continued to do well in the country, focusing on innovation and digital banking. The bank has a total of 430 offices in Spain serving customers in diverse fields and businesses.
9. Banco Pastor, S.A
It was founded in 1776 and is one of the oldest banks in the country. It’s listed as the fifth largest bank in Spain in terms of assets market capitalization and customer deposits. With over 650 branches throughout Spain, Clients are likely to find a branch in nearly every town.
This bank occupies the 10th spot in safety rankings and is the second largest bank in Catalonia, after La Caixa.
There are other numerous banks and microfinance institutions across Spain, but the above list captures the top ten banks, in terms of safety of deposits and overall financial stability. However, it’s perhaps worth noting that it’s difficult to predict the actual future safety rating of any given bank and financial resultskeep on changing on a daily basis, influenced by internal as well as external events. As such, the above ranking keeps on changing.