Spanish Banks Post Strong 1H25 Profits, Shares Gain

So far, many of Spain’s top banks have posted strong 1H25 results. Santander [SAN.E] and CaixaBank [CABK.E] reported YoY net profit growth of 13% and 10.3%, respectively, earlier this morning (Wednesday, 30 July).

Bankinter [BKT.E] posted a 14.4% YoY net earnings increase last week, while BBVA [BBVA.E] will release earnings tomorrow (Thursday, 31 July).

In parallel, Spain’s GDP rose 0.7% in 2Q25 compared to 1Q25. According to preliminary data published yesterday, 29 July, annual growth for 2Q25 compared to 2Q24 reached 2.8%. 

TL;DR

• Bankinter leads with a 14.4% YoY net profit increase

• Santander posts its strongest H1 result in its history

• Bank shares also post double-digit YTD growth

• BBVA 1H25 earnings due tomorrow

Spanish Banks Post Double-Digit Profit Growth

Pending BBVA’s result, Spanish banks are thus far reporting double-digit profit growth.

Bankinter led the sector with a 14.4% YoY rise in net profit to EUR 541.7 million for the first half of 2025. The lender’s customer loan portfolio grew 5.8% YoY to EUR 83.28 billion, while return on equity (ROE) improved to 18.4% from 17.7%.

Santander followed with a EUR 6.83 billion profit in 1H25, its strongest first-half earnings on record. Earnings per share rose 19% YoY to EUR 0.43, supported by 6% growth in client assets, including a 17% gain in investment funds.

Finally, CaixaBank posted EUR 2.95 billion in net income, reporting a 15.7% ROE and a 12-month efficiency ratio of 38.6% at the end of June. (Source: Bankinter, Santander, CaixaBank)

Spanish Bank Stocks Also Post Double-Digit YTD Gains

Spanish bank shares have also rallied sharply year to date (YTD), reflecting strong earnings momentum across the sector.

As of this morning, Santander leads with a 71.16% gain in 2025 so far, followed by Bankinter, up 62.33%, and CaixaBank with a 52.65% advance.

BBVA ranks fourth with a 42.48% rise, while the company is entangled in its takeover process of Sabadell. The acceptance period for BBVA’s bid is expected to open in early September. (Source: Finance Yahoo)

Conclusion

There’s no doubt 2025 has been a strong year for Spanish banks, both in earnings and market performance. Also, the Spanish economy is up in 2Q25.

The question now is how much momentum remains for banks after such rapid gains in just seven months, a call the market will ultimately make.

Attention is also turning to BBVA’s pending Sabadell takeover, which is seen as a potential sector shake-up. All eyes are now on September’s acceptance window.

*Past performance does not guarantee future results

FAQs:

What are Spain’s top-performing banks by earnings in 1H25?

Bankinter led with a 14.4% YoY net profit increase, followed by Santander at 13% and CaixaBank at 10.3%. BBVA reports next.

How is the Spanish banking sector performing on the stock market YTD?

Spanish bank stocks have posted strong YTD gains. Santander is up 71.16%, Bankinter 62.33%, CaixaBank 52.65%, and BBVA 42.48%.

How is the Spanish economy performing in 2025 (so far)?

As of the time of the writing, 30 July 2025, Spain’s GDP rose 0.7% in 2Q25 versus 1Q25. Meanwhile, Spain’s central bank expects an up to 2.4% annual growth for 2025. (Source: RTVE)

What’s next for BBVA and Sabadell?

BBVA is pursuing a takeover of Sabadell. The acceptance period for the offer is expected to open in early September 2025.