“The crisis cannot be an excuse to earn more”

This Wednesday, BBVA has presented its results of 2022, the year in which it earned 6,420 million euros, which represents its highest profit in history. According to the CNMV, the entity’s interest margin grew by 30.4%, commission income by 12.3% and loans by 13.3%.

Given these data, the Second Vice President and Minister of Labor, Yolanda Diazhas been forceful: we must “freeze mortgages” and “moderate benefits”. “The crisis cannot be an excuse to earn more”has made ugly, recalling the “very serious” rise that the Euribor has suffered.

“While the rise of the Euribor will make the average mortgage more expensive by 250 euros per monthBBVA’s profits grow 38% to reach 6,420 million, the highest in its history,” Díaz wrote on his Twitter account.

However, the bank has not finished liking this measure, as the president of BBVA himself has expressed, Carlos Torres: “I trust that what will happen is that they continue defending the benefits of a market economy“.

BBVA has not been the only bank with benefits. Sabadell it also yields its best result since 2006, with 859 million profit. bankinterFor its part, it achieves its historical record of profits with 560 million euros, without counting extraordinary operations.

Torres recalled the “negative years” that the entity he chairs has gone through, with “negative many billions“.

Right now, the more than three million variable mortgages (70% of the total) are becoming more expensive 3.4% due to the rise in the Euriborwith banks paying 0.7% for deposits and even 0%.

The Euribor, at 2008 highs

Variable-rate mortgages do not stop growing, as the Euribor rises. At the end of January, the average rate was 3.33%, its highest level since in December 2008 closed with 3.45%. This represents a rise of more than three points in less than a year, since in January the value was -0.477%.

Thus, a person who has contracted a 30-year variable mortgage of 150,000 euros and with a differential of 0.99% plus Euribor will suffer an increase in their mortgage payment of around 294 euros. In absolute terms, you will spend about 450 euros to about 744 per monthwhich is equivalent to an additional annual outlay of more than 3,500 euros.

With the same conditions, a mortgage of 300,000 euros of capital pending amortization and 30 years pending payment would have to assume a monthly increase of 588 euros, which means more than 7,000 euros per year additional.