SPAIN: ESADE: banks need to follow up commission … – EntornoInteligente

Expansion / In its latest financial economic report, seen by Efe said that the stability of the banking system in terms of solvency has been resolved satisfactorily, but warns that the Spanish banking sector has yet challenged to profitability.

In a financial environment like this, with interest rates at historical lows short and medium term, heavy commercial banking structures of a proximity condition results and profitability of entities, I warned Peters.

The report also notes that net interest income of Spanish banks has declined steadily in the last decade, up to 1% of total assets, “conditioned essentially by the weight of the mortgage portfolio. “

E insists that the improvement in net interest income, or pure financial intermediation, in an environment of low interest rates is” difficult “.

Given this, concludes that financial institutions will have to improve their economic performance by raising fees for services rendered, as reflected in the gross income or gross margin.

And though recognizes that since the year 2011, a slight increase in gross margin is found, warns that the competition in the Spanish retail banking poses a major management challenge.

All this despite the fact that financial institutions Spanish have faced an adjustment in terms of capacity, which has resulted in the reduction of trade, personal networks.

In the case of branches, recalls that in 2008 46 164 operating offices passed 33,782 at the end of 2013, 26.82% less; as to the template, in the same period it went from 277 732 to 217 421 employees a 21.17% less.

However, the Spanish banking model continues to be characterized by proximity, based in small offices with 4.7 employees on average per branch, unlike the Central European model of commercial networks with a greater number of employees and increased business volume per employee.

So adds that in a scenario of margins narrow and competition in the market like this, the strategy of Spanish banks involves improved profitability, “both assets under management (higher volume of assets per employee and branch), and in relation to the investor”.

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