Spanish Bank Shares Rise Following Supreme Court Decision -- Update
07 November 2018 - 8:39PM
Dow Jones News
Adds share movements.
By Alberto Delclaux
Shares in Spanish lenders rose Wednesday after the country's
Supreme Court said that customers, and not banks, would have to pay
a mortgage-related tax, potentially saving the financial
institutions from billions of euros in compensation.
A previous ruling from October determined that banks had to pay
the tax, representing a change to previous legal doctrine. Until
then, banks' clients had paid.
Late Tuesday, in a 15-to-13 vote, the court finally decided
customers should continue paying.
At 0900 GMT, Banco de Sabadell SA (SAB.MC), Bankia SA (BKIA.MC)
and CaixaBank SA (CABK.MC) shares rose close to 4%, with Banco
Santander (SAN.MC) and Banco Bilbao Vizcaya Argentaria SA (BBVA.MC)
trailing closely behind.
Bank shares had fallen sharply following the October ruling, as
the lenders would have potentially faced significant compensation
payments were the decision to become retroactive.
Spain's Budget Minister Maria Jesus Montero said the estimated
cost of the ruling, assuming four years of retroactivity, could
have amounted to 5 billion euros ($5.7 billion). Regional
authorities would have had to pay clients, and then claim the money
from banks.
Write to Alberto Delclaux at alberto.delclaux@dowjones.com
(END) Dow Jones Newswires
November 07, 2018 04:24 ET (09:24 GMT)
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