Santander and BBVA report strong solvency and capital excess

Major Spanish listed banks are reporting strong financial positions, driven by stable interest rates and robust credit demand. The six listed entities have accumulated an aggregate solvency excess of 10,745 million euros above their internal targets.

Banco Santander holds the largest portion of this capital, with an excess of 6,168 million euros and a CET1 ratio of 14% as of June. While the acquisition of Webster is expected to impact capital by approximately 150 basis points in the second half of the year, the bank anticipates organic capital generation to meet solvency targets by 2026. Santander has committed to distributing capital to investors that exceeds its 13% solvency threshold.

BBVA follows with a capital excess of 3,811 million euros. Its CET1 ratio stood at 12.90% at the end of June, a decrease from 13.34% in the same period last year, primarily attributed to dividend payments and share buybacks.