January-September 2013


Macro and industry trends

The first advance indicators for the third quarter of 2013 seem to suggest that economic activity in Spain is starting to stabilize, and some indicators even show signs of growth. This improved outlook is the result of three factors: strong exports, easing of financial tensions and the more limited fiscal effort in 2013.

In the country’s financial sector, the restructuring process continues according to schedule and the recapitalized banks are adequately implementing the restructuring plans imposed, which included divestiture, capacity adjustment and balance sheet readjustment programs. In this context, financial institutions continue to operate commercially in a difficult environment, with very low interest rates, reduced levels of lending activity and deteriorating asset quality. The NPA ratio stands at 12.0% for the system as a whole, according to the latest information available for the end of July. The ratio has been affected primarily by the new recommendations for the classification of refinanced loans, as well as the decline in the volume of loans.