Banking talks about banking again

MadridThe big Spanish banks are talking about banking again at financial conclaves. It's not that they haven't talked about it until now, but there was an "elephant in the room" that overshadowed the media spotlight: BBVA's hostile takeover bid for Banco Sabadell. Even though senior executives in the financial sector worked hard to explain how the business was going, headlines in the media didn't stray from this topic – it also helped that no one at these meetings hesitated to ask about the operation. But since the majority of Sabadell's shareholders decided not to accept BBVA's offer, that chapter is now history and the sector's conclaves are witness to it, as attendees at the first day of the financial forum that the Iese business school organizes annually in Madrid were able to verify this Wednesday. The meeting ends tomorrow, Thursday, and the main figures of Spanish banking will be there, but also other sector agents.

Beyond some questions about what's happening outside the financial world – CaixaBank's CEO, Gonzalo Gortázar, was asked as a Real Madrid fan about the elections at Real Madrid, although he dodged any controversy by leaving the debate "for next year" – Wednesday's discussions in the Iese's main hall revolved around the sector's transformation, investment in technology, mortgages, and dividends. The impact of geopolitics on banking, the taxes paid by entities, and the regulation they are subject to are also back on the table.

The sector applauds it – the economics sections are identified by their salmon color, but those who star in them are usually wary of gossip – while others find it less "exciting," it was commented on in informal conversations during the days. "We are a bit boring," quipped a former sector executive who admits to finding geopolitics or macroeconomics more "fascinating."

Looking at the horizon, a similar movement to the BBVA-Sabadell one is not foreseen, at least not in the short term and not hostile either. One of the protagonists, in fact, has made it clear: "We will continue alone, at least in the short term," stated the CEO of Banco Sabadell, Marc Armengol, for whom Wednesday's event was his first major public appearance in Madrid since becoming the bank's number two. Armengol has only opened the door to possible acquisitions in the future, provided they do not involve any of the major entities. "They already have a considerable size and it surely affects the health of [banking] competition in the country," he said. Sabadell is now looking to strengthen itself in the Catalan and Spanish markets, streamline its operations, especially customer relations, and fulfill its promises to investors.

since he became the bank's number two. Armengol has only opened the door to possible acquisitions in the future, provided they do not involve any of the major entities. "They already have a considerable size and it surely affects the health of [banking] competition in the country," he said. Sabadell is now looking to strengthen itself in the Catalan and Spanish markets, streamline its operations, especially customer relations, and fulfill its promises to investors.

Faced with an audience predominantly of young, shirt-wearing finance and business students, Spanish banking executives agreed that, despite the international context, marked by the war in the Middle East, the Spanish economy is holding its own, which helps the sector and the banking business, which once again promises good results. However, there are those who do not want to fall into "complacency": "It is necessary not to lose sight of growth," indicated Gortázar.

In fact, despite the optimism that prevails, the sector is not without its challenges. One is technological and the implementation of artificial intelligence and the investment this will entail. "It is a paradigm shift," acknowledged the CEO of CaixaBank about AI. Armengol and the president of Unicaja, Jordi Sevilla, have spoken along the same lines. However, this has a direct impact on branches and employees, although they have all hastened to dispel the specter of branch closures or layoffs: "When I look to the future, I see branches and employees," said Gortázar. "They will not become obsolete [the branches]," pointed out Sabadell's number two. On the other hand, what the sector would like to see reduced, and has been expressing this frankly for some time, is regulation, especially European regulation. "[In Europe] we are diagnosed, perhaps over-diagnosed," stated the president of Unicaja.