CaixaBank warns political instability deters investment as Spanish banks attract investors

Gonzalo Gortázar, chief executive of CaixaBank, said that Spain's persistent political fragmentation and legislative deadlock are discouraging foreign investors. He noted a 12% drop in foreign direct investment to €28.3 billion in 2025 compared with 2023, attributing the slowdown to the lack of a stable regulatory environment that capital‑seeking institutions require.

Despite the political concerns, analysts have named Spain’s major banks – Santander, CaixaBank and BBVA – as the sector’s top investment picks. They cite strong balance sheets, high capital ratios (CET1 above 13%), solid credit growth and diversified revenue streams such as insurance and wealth management. The recent European Central Bank rate hikes are also seen as beneficial for these banks. Upcoming earnings releases in July are expected to further test performance, with Santander set to report first, followed by CaixaBank and BBVA.