Spanish Banks: FY20 Earnings Significantly Down, but Credit Risk Still to Fully Materialise

DBRS Morningstar has released a commentary about large Spanish banks’ FY20 earnings, with the banks reporting a significant negative impact on domestic earnings due to the COVID-19 crisis. However, DBRS Morningstar notes Spanish banks’ asset quality indicators are yet to show deterioration as they appear to be identifying credit risks at a slower pace than other European banks.