Big banks recover

Earnings at major Spanish banks have started to hit rock bottom. Based on their profit margins from the first quarter, it looks like traditional businesses at the banks are starting to recover.

Banks have survived the deposit war, which puts them in a much more comfortable position than before. Profits rose 60% because of decreased capital needs after banks got through the enormous cleanup effort undertaken in 2012.

BBVA doubled its profits, earning 2.882 billion euros and leading all the banks this year. It did reap these earnings partly through selling new shares. Overall, the data suggests that the worst has passed.