Banco Santander SA’s completion of a 7 billion-euro ($9.4 billion) real estate cleanup is shifting the spotlight to how it will address investor concerns about capital and fix businesses in the U.K. and Brazil.
Banco Bilbao Vizcaya Argentaria SA said its profit will be hurt after a court ruling prompted Spain’s second-biggest bank to stop applying “floors,” or clauses setting minimum interest rates, on mortgages.
Banco Espirito Santo SA fell the most in 17 months after Portugal’s biggest publicly traded lender posted an unexpected first-quarter loss and its chief executive officer said he can’t guarantee positive results for this year.
Spanish banks have more than 30 billion euros ($39 billion) in debt coming due in the next four months. That’s spurring investor doubt on their future profitability as higher financing costs eat into margins.