Spanish banks' profits rose due to tax changes

Spain's six largest banks reported a combined profit of €8.487 billion in the first quarter, a 27% increase, setting a new record. This surge was primarily due to changes in how the government's banking tax is calculated. The improved profits for Santander, BBVA, CaixaBank, Sabadell, Bankinter, and Unicaja were also influenced by strong business performance. The new tax, paid quarterly, cost the banks €356 million, significantly less than the €1.478 billion paid in the same period last year under the previous tax structure. The Banco Santander led in profits at €3.402 billion. The shift in tax accounting methods, along with robust business activity, significantly impacted the financial results of the major Spanish banks during the first quarter of 2025.