Spanish banks post multi-billion euro losses

28 March 2013

Fears regarding the future of the Spanish banking industry have intensified following the publication of results by three of the country's smaller financiers.

Banco CEISS, BMN and Caja 3 have revealed they collectively endured multi-billion euro losses in 2012 as the toxic Spanish property market continued to have a major impact on the performance of lenders, Reuters reports.

This trio of banks have all received government bailouts since the onset of the global economic slump in 2008 and they revealed they were forced to accept significant write-downs on their failing property portfolios last year.

For instance, CEISS posted an annual loss of €2.5 billion ($3.2 billion), while BMN and Caja 3 registered losses of €2.4 billion and €1 billion respectively.

Earlier this week (26 March), the Bank of Spain's latest Economic Bulletin cast more doubt over the wider Spanish recovery as it predicted that the country will experience gross domestic product contraction of 1.5 per cent in 2013.

By Claire Archer

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