The most recent data from the central bank reveals a significant increase in banking sector profits, marking the highest value since 1990. The surge is attributed to a 137 million euro rise in net interest margin, a 124 million euro increase in commissions, and a reduction of 1.233 billion euros in provisions and impairments for bad debts.
The total amount of loans granted to individuals increased to 132.8 billion euros, a rise of 4.9 billion euros compared to 2023. Particularly, mortgages saw a jump of 3.5 billion euros in 2024, reaching 102.4 billion euros. This growth is thought to be driven by housing sector incentives, like exemption from transfer tax and stamp duty for buyers under 35, effective from August 2024.
Conversely, loans to non-financial corporations declined by 747 million euros in 2024. The number of bank branches also continued to drop, falling to 4,502 by the end of the year, down from a peak of 8,106 in 2010. This decrease has been notably prominent domestically, with about half of the branches closing.
The trend is seen across most banking groups, except for some regional entities emphasizing customer proximity and new bank creation. On the employment front, the banking sector workforce has grown for the third consecutive year, reaching 59,846 by the end of 2024, a rise of 987 since 2021.
This growth is largely due to an international group’s subsidiary, employing over 8,000 people, almost doubling its workforce from 2021 to 2024. This entity has the lowest percentage of employees over 44 years old, at about 12%. Overall, the proportion of banking sector employees over 44 increased from less than 30% in the early 2000s to 57% in 2024, with variations between 70% and 80% in different banks.
Regarding electronic payments, ‘other’ categories, including low-value payments for tolls, parking, and instant transfers, account for about a quarter (26%) of transactions, up 6.3 percentage points since 2019. Meanwhile, ATM withdrawals declined, representing 15% of transactions, down 8.1 percentage points. Purchases constitute 39% of card-based transactions, and ‘home banking’ payments stand at 15%, showing increases of 3.9 and 0.3 percentage points, respectively, compared to 2019. ATM payments decreased by 2.3 percentage points to 5%.
