Spanish banks’ international footprint: Recent developments

Spain’s banks are becoming increasingly more international, as shown by the share of total assets commanded by their international business. In 2023, that share stood at 55%, up nearly 10 points from 2015, one of the highest in the world. The banks’ international presence is also increasingly geographically diversified, with the concentration index down by half since 2015. Business in third countries accounted for 70% of the Spanish banks’ recurring profits in 2023. This strategy of international expansion and geographical diversification has paid off, yielding the benefits associated with both processes. Indeed, whereas profitability (ROE) in the domestic banking business in Spain reached 11% in 2023, that of the consolidated groups was 1.4 points higher, albeit it is worth noting that the international investments made by the latter were not recent.