Abanca earns 5% more until September and reaps 670 million profits

Abanca has obtained a attributable profit of 670.4 million during the first nine months of this year, 5% more than in the same period of 2024, when it earned 638.4 million, as reported this Tuesday to the National Securities Market Commission (CNMV). The company achieved a return on tangible equity (RoTE) 15.1%, compared to the 14.6% recorded at the end of July, thanks to the efficient growth of the business and good balance sheet management.

Between January and September, the entity led by Juan Carlos Escotet It generated some 1,199.7 million in interest margin, which is 1.1% less than in the same period of 2024, in a context of lower official interest rates. In it third quarter tight obtained some 397.6 million euros in interest margin, 0.4% more than in the previous quarter.

Besides, Abanca explains that the basic margin (which takes into account the “most core” part of its income) increased by 1.5%, to 1,474.9 million euros, thanks to the good evolution of business with clients. In this way, the gross margin reached 1,608.7 million in the first nine months of 2025, with a growth of 5.8% compared to the same period in 2024.

Operating expenses increased by 12.2% in the accumulated year, up to 826.9 million, due to the EuroBic integration within the perimeter of the Abanca Group. Excluding the impact of the Portuguese bank, expenses would be about 750.4 million euros with an increase of 1.8% compared with the closing of the third quarter of 2024. The entity states, however, that the control of expenses, combined with the strength of recurring income, has allowed it to place the efficiency ratio at 51.4%, with an improvement of 54 basis points in the quarter.

Regarding the main financial ratios, Abanca indicates that September ended with a CET1 capital ratio of 13.3% and total capital of 17.8%. In the last year it has generated an additional 500 million euros of capital cushion, giving it 2,079 million euros (532 basis points) on regulatory requirements. With a ratio of 23.0%, it comfortably exceeds (by 133 basis points) the requirement of the ‘anti-crisis buffer’, also known as MREL.

Low delinquency

Likewise, the bank highlights the reduction in the non-performing loan ratio and the increase in coverage levels. Doubtful balances decreased by 11.1% year-on-year, with which the delinquency rate stood at 2.2%. The coverage rate of these assets grew to 81.8%. In terms of liquidity, the entity had 23,016 million in liquid assets, a figure equivalent to 4.8 times its expected issue maturities. Additionally, at the end of September it had a bond issuance capacity of 7,369 million, which brings its total position to 30,385 million.

Furthermore, it explains that the financing structure is purely retail: 86% of retail deposits and ratio Retail LTD of 83.6%. In liquidity, the bank had ratios of 142% in net stable financing (NSFR) and 201% in liquidity coverage (LCR). Regarding the balance sheet, the entity indicates that at the close of the third quarter had a business volume managed of more than 134,000 million (including loans and customer resources), after a year-on-year increase of 5.6%.

On the one hand, the volume of credit to customers in a normal situation stood at 52,152 million, with a growth of 6.3% in year-on-year terms. Credit to customers is focused on the private sector, with companies, with 45% of the total, and individuals, with 39%as its fundamental recipients.

Regarding liabilities, the collection of customer resources showed a similar behavior: it reached a total of 81,758 million after growing 5.2% compared to September 2024. In the bank’s customer resource structure, 77% of the total corresponds to demand and term balances, while the remaining 23% to off-balance sheet resources.

The entry of new clients (more than 88,000 in Spain and over 30,000 in Portugal) has translated into an increase of 1.5% in retail warehouses. In this sense, Abanca also highlights that its portfolio has a purely retail profile: 94% of the deposits correspond to families and companies, and 70% have a lower balance at 100,000 euros.

In addition, the entity highlights the 20.1% growth in the interannual rate of its resources off balance sheet, up to 18,945 million. Finally, it points out that general and life risk insurance premiums increased by 14.6% in the same period, up to 634 million, with death (+44%), life risk (20%), home (13%) and business (12%) products showing the most notable evolutions.