Spanish banking sector reports record profits of €29 billion

The six major Spanish banks—Santander, BBVA, CaixaBank, Sabadell, Bankinter, and Unicaja—are projected to achieve a combined net profit of approximately €29.2 billion for the first nine months of the year. This represents a 15% increase compared to the same period in 2025.

Santander is expected to lead the group with a 21% profit increase, reaching roughly €12.5 billion, bolstered by the sale of its Polish subsidiary, Santander Polska. BBVA is projected to see a 13% rise, reaching approximately €9 billion, supported by strong performance in Spain and Mexico. Both CaixaBank and Bankinter are anticipated to post double-digit growth.

These record earnings come despite significant workforce reductions; over the last decade, the sector has eliminated approximately 82,000 positions through mergers, office closures, and automation. Analysts attribute the surge in profitability to the recovery of interest margins following central bank rate hikes, though they warn of potential risks from upcoming recessions and geopolitical tensions.