Coverage: Q2 2026 · Information to 25 September 2026
TGB Premium Intelligence · Subscriber Edition
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Published: 25 September 2026 | Region: Europe | Country: Spain | Coverage: Q2 2026 (April–June 2026) | Classification: Premium Intelligence
Desk view — Spain, Q2 2026
- Spain remains the euro area’s growth outlier. INE data show real GDP up 0.7% quarter on quarter and 2.6% year on year in Q2 2026, driven by household consumption and investment.
- Spanish significant institutions earned the highest return on equity among the euro area countries for which the ECB publishes the figure, 16.64% in Q2 2026 (ECB data), up from 14.98% a year earlier.
- Domestic asset quality keeps improving. The Banco de España’s doubtful-loans ratio fell to 2.54% in June 2026, its lowest since August 2008.
- Capital is the thinnest in the euro area: a 13.52% CET1 ratio for Spanish SIs. The countercyclical buffer on Spanish exposures rises to 1.0% from 1 October 2026.
- The largest banks reported record or near-record half-years. Santander’s attributable profit rose 31% to €8.97 billion and BBVA’s 11.1% to €6.05 billion.
Executive summary
Spanish banks remain the profitability benchmark of the euro area. ECB supervisory statistics for the second quarter of 2026 show Spanish significant institutions with a return on equity of 16.64%, the highest among the euro area countries for which the ECB publishes the figure, and up from 14.98% a year earlier. Their cost-to-income ratio of 42.89% was lower than in Germany, France, Italy and the Netherlands. Real GDP grew 2.6% year on year in Q2 2026, according to INE.
The domestic balance sheet is in its best condition in almost two decades. The Banco de España reports a doubtful-loans ratio of 2.54% for the resident private sector in June 2026, the lowest since August 2008, down from 2.97% a year earlier. Doubtful loans fell €4.6 billion over the year while total credit grew €26.7 billion. The ECB’s rate rises in June and September, to 2.25% and then 2.50% on the deposit facility, support margins in a market where a large share of lending is floating-rate.
Capital and policy are the constraints. Spanish significant institutions report the lowest CET1 ratio in the euro area, at 13.52%. The Banco de España’s decision to raise the countercyclical buffer on Spanish exposures to 1.0% from 1 October 2026 adds to requirements. The tax on net interest and fee income continues to absorb a meaningful share of domestic profits: CaixaBank alone booked €304 million in the first half.