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HomeLatest NewsGoirigolzarri assumes that delinquency increases due to the rise in rates

Goirigolzarri assumes that delinquency increases due to the rise in rates

Date: May 20, 2024 Time: 09:00:28

The rise in the Euribor, which has started the year at 3.3%, and its impact on mortgage payments has been the focus of the Caixabank press conference after the presentation of results for the 2022 financial year. In this regard, the president of The entity, José Ignacio Goirigolzarri, has insisted that “we are normalizing interest rates, what is abnormal is that since 2016 we have had negative rates in Europe”. Goirigolzarri has insisted that “we are not historically at high interest rates.” Despite this, the bank has admitted that by 2023 there may be a moderate increase in delinquency, as indicated by Gonzalo Gortázar (of around 25 basis points) due to the economic deterioration, but also due to the rise in interest rates.

Goirigolzarri wanted to make it clear that “there has been a very abrupt rise in interest rates, which has caused some concern”, but this has not translated into an increase in defaults and the deterioration of assets yet. In this sense, he has insisted that “in the event of greater difficulties, we are prepared to help clients with specific orders in the offices.” In addition, he has recognized that at the moment there is little demand from his clients to benefit from the Code of Good Practices and its extension. “We have received 800 requests, but previously, the average was 100 per month.”

The entity calculates that the 12-month Euribor on average will stand at 3.5% in 2023 and 3% in 2024. It should be noted that the index to which the mortgages are referenced has had an impact on the results in the last quarter of the entity, with an improvement of 33% in the interest margin. From the bank they have admitted that it acts as a tailwind in the short term, but it can also cause a deterioration of assets because the rise in interest rates will have a negative effect on the evolution of the economy.

The entity, which has seen new mortgage production double, expects a slowdown in new production in 2023 due to the rise in interest rates. As for remunerating deposits, it depends on each bank. “There are entities of different sizes and nationalities that are offering deposits”, explained Cortázar, who has insisted that “deposits are not the best products to obtain profitability and, therefore, we have trained the workers and we have the vision of There are better products.” Cortázar also, due to liquidity requirements, makes issues and the entities have a lot of liquidity. Caixabank has indicated that its objective, in any case, is to capture payrolls, with a link.

Dividend and defense of the businessman

During the press conference, the Chairman of Caixabank pointed out that the bank As regards the announcement of the dividend, of 0.23 gross euros per share, the bank reiterated that half of the disbursement made by the entity will be passed on to society, via the Foundation, which will receive 550 million euros, and through the FROB, with 300 million euros

During the press conference, Goirigolzarri defended the figure of the businessman, after the government’s attacks on different personalities from the economic world, emphasizing that without them, Spain does not have leaders in companies within the textile and distribution sector, “like Mercadona, which has 100,000 workers on its payroll.” Goirigolzarri concluded by saying “I wish we had many businessmen who would support the Spanish economy”.

When asked if the banking results for 2022 are understandable, Goirigolzarri has insisted that we have come from a few years with negative rates, without covering the cost of capital. He has also asked to “contextualize” the figures, recalling that the credit given in mortgages and companies is also “enormous.” And the bank’s price continues to be below the book value. The banker has insisted that the bank “has to be profitable, to be able to finance the economy”, otherwise he could have used the moratoriums and the ICO credits.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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