Friday January 11, 02:05 PM
Banesto's Botin sees financial markets situation 'normalising' in coming months
MADRID (Thomson Financial) - Banco Espanol de Credito SA chairwoman Ana Patricia Botin said the bank expects the current crisis in the financial markets 'to normalise' over the coming months, highlighting the slight improvement in the
last few weeks.
Speaking to journalists, Botin said that the normalisation process should have a positive impact on the dollar exchange rate.
On the outlook for eurozone interest rates, she said she expects these to 'stabilise' over the coming months, while flagging the possibility of a cut towards the end of 2008.
Banesto is targeting loan growth of 10-12 pct in the Spanish banking sector for 2008 'if the markets return to normal', Botin said, with 'single digit' mortgage loan growth.
Botin played down the impact on Spain's economy of the slowdown in the construction and real estate sectors, highlighting the country's strong tourism and industrial sector.
On Wednesday, Prime Minister Jose Luis Rodriguez Zapatero also played down talk of a crisis in the Spanish economy, citing 'record' growth in earnings in listed companies in 2007, while noting that the slowdown in the property sector is 'logical' after the boom of the last few years.
Earlier, Banesto said net profit fell to 764.6 mln eur in the full-year to Dec 31 from 1.451 bln a year earlier, reflecting the absence of heavy capital gains from the sale of its Urbis (Madrid: URB.MC - news) stake in the last quarter of 2006.
Botin highlighted the bank's 'financial strength,' noting that its bad loans ratio of 0.47 pct at end-December compares with 0.53 pct for the Spanish banking sector and 1.57 pct for the sector in Europe.
On expansion plans, Banesto will continue to favour organic growth, while still analysing any expansion opportunities in Spain, she said.
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