European banks face consolidation push, share buybacks and surge in consumer credit demand

European authorities are urging large banks to pursue cross‑border mergers to boost competitiveness. The European Commission’s recent report, backed by ECB President Christine Lagarde and Commission President Ursula von der Leyen, calls for accelerated consolidation despite resistance from major Spanish banks such as CaixaBank and Banco Sabadell.

Spanish lender BBVA reported that it has completed over 80 % of its €1.46 billion share‑repurchase programme, buying roughly six million shares at an average price of €22.31 per share, as disclosed to the CNMV.

The broader Spanish banking sector posted a record‑breaking half‑year profit of more than €18 billion, with Santander and BBVA leading the earnings surge, while Sabadell is expected to see a decline.

A consumer‑credit survey by Asufin showed a historic high, with 35.9 % of Spaniards planning to take a loan in the next six months – the largest share since the survey began in 2020. Liquidity needs and debt‑refinancing are the main drivers, even as loan rates rise after the European Central Bank’s recent rate hike. Vacation‑related financing also accounts for 17 % of loan applications during the summer, according to a Kantar/Asnef report.

These developments illustrate a period of intense activity in Europe’s banking and credit markets, combining policy pushes for consolidation, corporate capital‑return actions and growing household demand for financing.