Spanish banking sector targets €29.2 billion in profits

Major Spanish banks are projected to achieve a combined profit of approximately €29.2 billion, representing a 15% increase compared to the same period last year. This growth is driven by the European Central Bank's high interest rate cycle, which has bolstered interest margins.

Market consensus anticipates a tenth consecutive record-breaking quarter for the sector. Banco Santander is expected to lead the group with an estimated 21% profit increase to €12.544 billion. BBVA and CaixaBank are also projected to see growth of 13% and 10%, respectively.

Banco Sabadell is the notable exception among the five major entities, with analysts forecasting a 3% decrease in profit to €1.35 billion. This decline is primarily attributed to the sale of its British subsidiary, TSB, to Banco Santander.