The large listed corporations in Spain stood out in the third quarter of the year, which runs from July to September, from the slowing trend of the economy as a whole. They did it with a strong rise in profits, of 22%, up to 14,449 million euros, therefore, the accumulated earnings since January, of 38,825 million, are already similar to those of last year, which they were a record. Banks and tourist groups explain this continued boom in profits.
What happened among companies in the third quarter contradicts the economic slowdown detected by the INE. The GDP progressed by 0.3% compared to the previous quarter, which means a growth one tenth lower than that recorded between March and June. The ECB and other bodies agree that, despite the fact that Spain will close the year with a performance higher than the average of the euro zone, the evolution will go from higher to lower.
The explanation for the high profits of large companies is mainly in banking, which has continued to internalize the effects of interest rate hikes, and tourism, which has experienced a great summer, with demand and skyrocketing prices. These two sectors compensate for the retreat of another one of the most present in the Ibex, that of energy, which moderated profits after shooting them up in 2022, amid rising hydrocarbon prices due to the invasion of Ukraine.
The banks have not stopped reporting record profits. The six listed companies, which are Santander, BBVA, CaixaBank, Sabadell, Bankinter and Unicaja, added up profits of almost 20,000 million euros until September, despite the new tax from the Central Government. It is 23% more than a year ago and a record obtained mainly thanks to the improvement in the third quarter, in which Santander gained 19% more; BBVA, 29% more, and CaixaBank, 69% more.
The good time in tourism allowed Aena to accumulate a profit of 1,139 million until September, 71% more. Added to the traffic at the airports is the recovery of the airlines, represented on the Ibex through IAG, the parent company of Iberia, which won 2,151 million. The technology group Amadeus, dedicated to the wholesale sale of airline tickets, has accumulated a profit this year of 841 million euros. The Ibex has only one hotel company, Meliá, which has not reported the results.
Energy companies have a large weight in the selection, with eight listed, which are Ibedrola, Endesa, Repsol, Acciona Energía, Enagás, Naturgy, Redeida and Solaria. In the absence of the results of Acciona Energía and Naturgy – the CNMV no longer requires the presentation of accounts for the first and third quarter –, the rest of the energy companies add up to a profit of 8,767 million euros, 4.6% less.
The sharpest falls have been that of Endesa, by 27%, and that of Repsol, which earns 13% less and is reducing investments in Spain in response to the tax on energy companies. Solaria, on the other hand, gained 24% more thanks to the entry into operation of renewable projects, and Iberdrola, very oriented towards networks and green technologies, raised its profit by 17%.
The rest of the Ibex lives very dependent on the circumstances of each sector. Socimis Colonial and Merlin suffer losses or a sharp erosion of profit due to the effect of interest rate rises on the real estate business, while steel giant ArcelorMittal or stainless steel manufacturer Acerinox sharply cut earnings compared to to record profits last year, when commodity prices soared.
The two construction companies in the selection, ACS and Sacyr, are improving profits by 19% and 36%, respectively, thanks to the international business, which is mainly focused on the United States.
The technology component of the Ibex is mainly driven by Telefónica, whose earnings are back until September, despite rising almost 10% in the third quarter, and Indra, with increases since the beginning of the year of 25%, encouraged by the increase in public expenditure on Defence.
