Spanish banking reaches new records of profitability in an environment of tension with the workforces
The proportion of doubtful loans falls to unprecedented minimums despite the increase in interest rates
BarcelonaSpanish banks closed the second quarter of 2026 reaching profitability figures never seen since records began. According to the data published this Monday by the Bank of Spain, the profitability of all credit institutions in the country stood at 16.05%, one and a half points higher than the same period last year. The sector's good performance in terms of productivity, however, clashes with the climate of tension felt among the workforce. Just last week, the services federation of Comissions Obreres (CCOO) –the trade union with the most representation in the Spanish banking and financial sector– called for demonstrations on October 15 and November 4 in front of the main Spanish institutions in a dozen cities to demand better working conditions for employees.
The Bank of Spain's indicators make it evident that the sector is going through one of its best moments in terms of the purely business evolution. The profitability ratio –obtained by dividing net profit by net equity– had never been so high, if results of a non-recurrent nature are excluded. In the note published this Monday, the public body detects an improvement in both year-on-year and quarter-on-quarter terms.
Capital and liquidity coverage ratios also improve and remain above the recommended levels, two requirements that were introduced following the 2008 financial crisis to control the risks to which institutions were exposed. Likewise, the non-performing loan ratio –calculated by dividing the amount of loans considered doubtful of collection by the total volume of loans– fell to historic lows and defied interest rate hikes. When the European Central Bank (ECB) makes the price of money more expensive, credit installments rise, and it is common for the percentage of non-performing loans to also increase. Far from what might be expected, this indicator fell to 2.53% at the close of the second quarter, two tenths of a point less than last year.
Record profits and labor unrest
During the first half of the year, the Spanish banking sector has broken all records. The six major entities of the Ibex-35 closed the first semester registering a record profit of 20.164 billion euros, 18% more compared to the first six months of last year.
As a result of these unprecedented results, the state's giants have distributed enormous dividends among their shareholders. Banco Santander promised an interim cash dividend of 12.7 cents per share charged to the 2026 results, while, more recently, BBVA announced the distribution of the largest dividend in its history. CaixaBank also said it would deliver an interim dividend equivalent to between 30% and 40% of the first-half profit, while Sabadell distributed the extraordinary dividend for the sale of its British subsidiary TSB for about 2.5 billion euros.
In contrast to this entire scenario, the unions have raised their voices. In a press conference held last September, Comissions Obreres demanded salary improvements for the coming years in the face of "the unbearable work climate" that workers are suffering. "The Spanish banking sector had never earned so much money, and its staff have never been worse off," representatives of the organization stated.
In parallel, consumer organizations such as Adicae (the Association of Users of Banks, Savings Banks and Insurance) also warn that the commitment to new artificial intelligence tools –in an attempt to further optimize costs– could end up harming users, both due to a possible decrease in service quality and an increase in risks when carrying out certain operations.