103,957 disappear rich in Spain between 2007 and 2009
| Date: February 9, 2010 | Source: AlertNet |
| Category: Economy | |
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The market crisis has wiped out a bunch of rich people in Spain. Between 2007 and 2009, 103,957 disappeared people with financial wealth exceeds € 300,000, while the volume treasured private banking institutions in the country fell by 106,457 million euros, according to Banco Banif. This entity has not emerged unscathed from the housing crisis and the growing lack of investor: over the same period its gross profit fell 58.16%.
The recent crisis has dealt a blow to private banking, which has seen year after year its customers and the volume handled inevitably dwindled. And this year the situation will not be very different, according to Jose Manuel Garcia de Sola, CEO Investment Products Banif Bank.
In his opinion, the results will be repeated in 2010, with varying fortune between the entities, as the interest margin will be lower with the low interest rates and increased customer deleveraging (which no longer borrow, so there is less volume and therefore lower fees charged for banks).
According to figures provided by Banif, and comparing the third quarter of 2008 to the third quarter of last year, gross profits of the leading private banking institutions operating in the country fell from 298.4% of UBS and 24, 2% of Urquijo (Sabadell Group). Alongside the latter, only two other banks got their results would not be halved: Banif himself, who won 45.3%, and People, the only recorded profits (+39,9%).
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