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the market environment


Annual Report 2014 BME

Non-financial sector: extraordinary oper-

ations extend the fall in profit from 1% to


At aggregated level, industrial and services compa-

nies had billed €267,996 million between January and

September 2014, down 1.19% on the same period

in 2013. The policies to optimise funds and contain

costs implemented by companies during these years

of crisis are reflected in the performance of gross

operating profit: it fell somewhat less than income,

recoiling by 1%. Extraordinary operations beyond the

company’s own activities caused the end balance of

the income statement to fall off 5.58%.

Banks: increase profit by 4.63% while the

basic margin rises by 1.88% due to lower


The results of the global assessment to which 130

banks were submitted in 19 eurozone countries

in autumn 2014, including 15 Spanish companies,

disclosed that the restructuring process of the

Spanish bank intermediaries performed in recent

years has reaped its fruits. Only 1 in 15 Spanish

entities examined did not exceed, by two decimals,

the minimum capital required in each of the

three phases, a situation which was resolved after

performing a capital increase. The fourteen entities

which did pass the assessment easily covered the

minimum required in all stages of the examination.

2014 unfolded in the backdrop of a slight recovery

of the Spanish economy, backed by a progressive

normalisation of financing conditions and a favour-

able evolution of the employment market, circum-

stances which boosted a certain recovery of new

credit operations. Basic earnings, that is, the sum

of net interest income (the difference between that

collected for credits and that paid for deposits) and

charges amounted to €55,973 million in the first nine

months of 2014, up 1.88% on September 2013. Net

interest revenue was up 2.8%, a rise which reflects a

certain reactivation of typical bank businesses such

as brokerage.

Operating costs, following the trend of recent years,

were down 4.65% with respect to September 2013.

The logical result of the restructuring process imple-

mented by the entities which has led them to reduce

both the number of employees and branches caused

them to gain in terms of efficiency.

Likewise, following the significant balance sheet over-

hauls which the entities were forced to perform to

comply with regulations, charges to provisions and to

cover losses for asset impairment fell by almost 16%

with respect to 2013.

The joint performance of income and costs led

after-tax profit and minority interests of all listed

banks to rise by 4.6% in the first nine months of the

year under way.