Spanish banks return to health in 2014. The Spanish banks have presented positive quarterly results, with the country itself getting back on track following the economic crisis, with GDP of 2.9% announced for 2015, according to an analysis by the French daily newspaper Les Echos. In particular, net bank results, which have a strong correlation to the economy, are mostly on the rise: by 21% for Sabadell (€643 million) and 3.9% for BBVA in Spain (and 8% at group level, to €3.66 billion). Net profits are also up: Santander's by 32% (1.7 billion euros and Bankia's by 12.8% (244 million euros). A further revealing indication, when the lack of financing in the country was one of the main causes for the crisis, is that the issuing of new loans has taken off again, despite the level of existing loans, which continues to drop as a result of the amortisation of loans issued during the economic boom. Additionally, in an environment of tight margins, the banks are favouring loans to business, as this is more profitable. These loans are up 75% at Bankia and 99% at CaixaBank. Consumer credit is also growing sharply in most establishments, as is mortgage credit, but to a lesser extent. This new boost is mainly due to an increase in demand, according to a Bank of Spain survey on bank loans granted between January and March. This tendency is related to economic recovery, but also to the improvement of financing conditions made available by the banks, due, amongst other things, to the monetary policy of the ECB. The solvency of Spanish banks, which was strengthened following the accelerated cleansing of their balance sheets in 2012 and 2013, also puts them in a more comfortable position to lend: the tier 1 common capital ratio (CET1) now stands at 9.7% for Santander and more than 11% for several banks, including Sabadell. However, doubtful debt, although down, is still high (12.6% at Bankia). (Isabelle Lamberty)