Spanish banks plan further branch closures to boost profitability
Over the past 10 years, almost 21,000 branches have closed in Spain. By comparison Germany has closed 14,000, while Italy has shuttered 10,000, according to Scope Ratings.
Spain’s largest banks have been reducing the size of their branch networks in a bid to improve cost efficiencies and capture the benefits of the shift to digital, especially in light of recent big-name consolation in the sector.
According to Scope Ratings, Spanish banks have already made significant progress in branch rationalisation in over the past decade. In 2010, there were 125 branches per 100,000 of population aged between 15 and 74; in 2020, that had halved to 62.5.
Over the past 10 years, almost 21,000 branches have closed in Spain. By comparison Germany has shuttered 14,000, while Italy has closed 10,000 branches.
Further closures are planned in Spain, which has provoked an angry backlash as the country grapples with the fallout from Covid-19. Santander, for example, is planning to close a third of its 1033 domestic branches, and has announced 3572 layoffs for 2021. BBVA, meanwhile, plans to shutter 480 branches with a resulting 2935 job losses.
In November 2020, Banco de Sabadell reached an agreement with unions on 1800 layoffs in Spain, having already closed more than 200 branches during the year. CaixaBank reportedly plans 6950 layoffs and 1500 branch closures following the merger with Bankia.
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