Pay

up!

BANKS in Spain have been told to start paying clients better rates for their savings as interest rates continue to climb.

The call has come from Economy Minister, Nadia Calvino, speaking at an event organised by the BBVA bank. Banks have cashed in with increased profit margins due to the European Central Bank tightening its monetary policy and lifting interest rates to 3.5% - the highest in over 20 years.

Most banks though have not passed on the full benefit of rate rises to customers who have deposit accounts. Nadio Calvino said: “I have no doubt that the Spanish banking sector has to start transmitting the rise in interest rates for the benefit of customers and Spanish citizens.”

By Alex Trelinski

worst-performing region in the 2023 financial year, with service revenue growth falling by 5.4%the highest in any of the company’s markets.

The fall was blamed on ‘continued price competition

Across

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All solutions are on page 14 and a lower customer base’. In the group’s latest annual report, published in May, it noted a ‘strategic review’ of its operations in Spain was part of a multi-faceted action plan to spur growth across several European markets.

Deutsche Bank telecoms analyst Robert Grindle said that a partial or full sale of Vodafone’s Spanish division, including its fixed-network infrastructure, could attract private equity interest.

“Further strategic action by Vodafone to address underperforming assets following recent news of the proposed UK merger should prove sentiment supportive,” noted Grindle, referring to Vodafone’s planned merger with Three.

Vodafone is not the only firm in the Spanish market suffering from high competition with Orange having to strike a deal to merge operations with Masmovil to make savings, allowing it to increase investments.

Pension scheme boost

THE volume of assets in the individual pension system in Spain increased by €365m to €83.1bn in May 2023, according to data from Inverco.

The company noted that the positive returns experienced during the month drove the rise in individual pension assets.

This is the third month in a row that individual pension assets have increased in Spain, rising from €82bn to €83.1bn between the end of February and the end of May.

Big figures

Correos delivers

SPAIN’S national post service, Correos, has won two awards at the World Post & Parcel Awards 2023.

It scooped the prizes for the Correos Market app, and in the Postal Evolution category for the Correos Frío service.

The public company said in a statement that these awards are considered the ‘Oscars of the postal and logistics sector’.

Positive outlook

THE Bank of Spain has raised its economic growth forecast for 2023 to 2.3% from 1.6% in March as activity picked up more than expected at the start of the year, with energy costs easing and employment rising.

The country’s GDP has also been boosted in recent months with record numbers of foreign visitors pumping money into the economy.

The Bank says that GDP will rise by 2.2% and 2.1% respectively in 2024 and 2025.

“The Spanish economy has shown remarkable resilience in the first half of the year,” highlights the Bank of Spain’s quarterly report.

The entity believes that inflation will close the year at an average of 3.2% compared to 3.7% in its last quarterly report in March.

THE El Corte Ingles Group closed the 2022 financial year with global revenues of €15.3 billion - up 22.5% compared to the previous year with net profits rising seven-fold to €870 million.

The group says the results are down to the way it has developed its business, cut costs, and introduced management improvements which has allowed it to consolidate growth despite customers having to endure higher inflation and interest rates.

“The solid financial position together with a strong recovery in profitability will allow the group to undertake new projects in the future,” an El Corte Ingles statement said.

The main growth driver has been the retail side of the business, which achieved sales of €12.2 billion representing a growth of 7.8% compared to the previous year with fashion doing well as sales went up by 16.3%.