The benefit of Sabadell, bogged down by provision for the clauses – to-ground Investing.com Spain

MADRID (Reuters) – Banco Sabadell (MC:) on Friday announced an increase year-on-year of 0.3 per cent in its net profit by 2016, following sign provisions are intended to cover the possible impact of a recent court ruling about the terms soil in the Spanish banking sector.

The annual benefit 2016 stood at 710 million euros, slightly below that of the 738 million-euro average of estimates of analysts assessed by Thomson Reuters. In the fourth quarter, the net profit was € 64 million, a nearly 51 percent less than the previous year.

The fifth Spanish bank by market capitalisation had already said that was estimated at 490 million euros the maximum impact in the case of an opinion, which forced him to the bench to return to the mortgage customers throughout the capital unduly charged under the so-called clauses soil.

The Catalan entity, who has argued that the clauses ground on their mortgages were transparent, and therefore valid, considered Friday that “the value corrections due to impairment and provisions (al) 31 December 2016 be sufficient to absorb possible losses”.

The Court of Justice of the European Union ordered to the end of December to the Spanish banks to return to clients all the capital unduly charged with the controversial clauses ground if they are declared null and void, which according to the Bank of Spain could lead to the entities to return up to 4,000 million euros.

The bank, which announced that on February 7, will give a presentation to update its strategy, provided that 2017 will be a year of transition after which it will implement a new business plan in 2018-2020.

For this year, looks to continue with the containment of costs, both in Spain as in the Uk, and with the reduction of problem assets, which has set an annual target of 2,000 million euros.

as of 2018, expected to focus on the “growth in existing markets”, the “normalization of the balance sheet”, the “optimizing efficiency” and “strengthening of the digital capabilities and business” it said in a filing submitted to the securities and exchange commission.

legal Notice: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.