Spain’s Banco Popular Bad Loans Surge 20% QoQ (Most Ever) To Record High

Spain’s Banco Popular BadLoans Surge 20% QoQ (MostEver) ToRecordHigh

// ZeroHedge

As we draw ever closer to Europe’s date with disaster and the inevitable lifting of the kimono that Draghi’s supervision-driven stress tests appear to be, European banks are being forced to finally ‘fess up to the real state of their balance sheets. Confused at how bad macro data can be in Spain and yet banks have been ‘surviving’ or ‘thriving’ – simply put, they lied (and are now being forced to un-lie)

Spain’s Banco Popular justreleasedearningsshowing a 19.6% risein non-performingloansat EUR21.2 billiondrivenby a surge in "doubtfulloansforsubjectivereasons" thatalmosttripledQoQ. This is the highest bad loan ratio on record at 14.27% – but have no fear, their CEO says "loan defaults are nearing their peak," because he would know…

From the Banco Popular earnings report…

and in context!!

It seems we have reached the point where some "honesty" is the best policy as if they want to raise capital and be "saved" by the ECB, they need to show just how bad it all is – together. Expect more of the same from Spanish (and Italian) banks…

The European bank ETF EUFN is down over 7% from its Jan highs in the last few days and while somewhat illiquid remains the cleanest way for US retail to trade any follow-through from European banking system exuberance fading.

Charts: Bloomberg

Shared via my feedly reader

Deja una respuesta

Tu dirección de correo electrónico no será publicada. Los campos obligatorios están marcados con *

Este sitio usa Akismet para reducir el spam. Aprende cómo se procesan los datos de tus comentarios.