Shattering profit records, the new normal for big Spanish banking

• Bank revenues grow at the same pace as profits and approach 100 billion euros
• The entities believe that the favorable context of high interest rates will be maintained
• The sector announces the distribution of dividends in a climate of tension with the workforce

Shattering profit records has become the new normal for the major Spanish banks. After a 2025 marked by an increase in commercial activity in an environment of falling interest rates, the new geopolitical and economic context has given a new boost to the sector. With ever-soaring inflation and a European Central Bank (ECB) forced to apply a restrictive monetary policy to avoid uncontrolled prices, the new wave of interest rate hikes has catapulted the results of the main entities, which are forecasting a historic year.

At the close of the first nine months of this 2026, the six Spanish banks of the Ibex-35 –Banco Santander, BBVA, CaixaBank, Banc Sabadell, Bankinter and Unicaja– achieved a joint profit of 29.253 billion euros, 15% more compared to the same period last year, according to the balance sheets of the different groups published by the National Securities Market Commission (CNMV). The figure represents a new record for the sector, which since the recovery after the outbreak of the pandemic has seen its earnings account continue to grow.

With the sole exception of Banc Sabadell, which recorded a slight drop in its profit of 1% –compared to an already record-breaking 2025–, the rest of the entities in the Spanish index increased their earnings. Besides being the largest group by volume of assets, Banco Santander also presented itself as the entity that increased its profits the most between January and September. The company presided over by Ana Botín posted earnings of 12.405 billion euros, 20% more in year-on-year terms, a figure boosted by the sector context and by the net capital gain generated by the sale of its subsidiary in Poland.

Closely following are BBVA and CaixaBank, the second and third largest entities by volume of assets, respectively. The company of Basque origin exceeded 9 billion euros in profit, 13.6% more, while the 'star' entity recorded earnings of 4.962 billion euros, 12.8% more. Apart from Sabadell, with a net profit of 1.376 billion euros, the list is closed by Bankinter, with an improvement of 10.9% and a result of 901 million euros, and Unicaja, with a profit growth of 7.9%, reaching 543 million euros.

The favorable interest rate environment has become evident when analyzing the banks' gross margin, the indicator that reflects the total revenue of the entities. During the first nine months of this year, the gross margin of the six Ibex groups touched 100,000 million euros, a figure that represents a 10% increase compared to the same period of the previous year. In the same line, the net interest margin – the difference between what an entity charges for its assets and what it pays for its liabilities – rose by 11.4%, to 71,581 million euros.

Optimistic outlooks

The feeling among sector executives is that the scenario of interest rates favorable to the banking business will be maintained. With inflation that continues to give no respite to families –in the State, the cost of living in October has increased by 4.9% in year-on-year terms, well above the 2% target–, a new rate hike is not ruled out. Although the ECB opted yesterday to keep the price of money, Bloomberg also published that the governing council of the monetary body is "prepared" for a new hike in December and, possibly, another one at the beginning of 2027.

BBVA CEO, Onur Genç, made it clear in his results presentation. "The outlook for revenue for the coming quarters is good," he acknowledged during his speech. In the case of BBVA, it is not only favored by the path of interest rates in the eurozone, with two hikes in the last four months, but also by interest rates in other markets such as Mexico, where the cuts seem to have reached the end at a reference rate of around 6.5%.

As a result of this euphoria, the entities have continued to announce the distribution of dividends among their shareholders. This same Friday, CaixaBank approved the distribution of an interim dividend of 1.281 billion euros –18.44 gross cents per share– which it will pay on November 6, while Sabadell announced another one for 325 million euros –of 7 cents per share– which it will deliver on December 29.

Tension with the staff

The sweet moment the banking sector is experiencing contrasts with the tension that has set in among its staff, who report a loss of purchasing power, "in crescendo" pressures, and concern about how artificial intelligence might affect the future of jobs. Precisely in this context, and just after the presentation of results, the services federation of Comissions Obreres (CCOO) –the trade union with the most representation in the Spanish financial sector– plans to hold a new wave of protests on November 4th in front of some of the State's main entities.

One of the demonstrations next week will take place on Via Laietana and Passeig de Gràcia in Barcelona, in front of the corporate buildings of Santander, BBVA, and CaixaBank.