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UBS predicts Spanish bank woes
Spanish banks are still to feel the full impact of the financial crisis, UBS said yesterday, warning that asset deterioration would hit the country’s lenders hard.
“We expect earnings for Spanish banks to fall by 15 per cent this year and 25 per cent next year and to only start to recover in 2012,” UBS said in a research note.
The bank’s economists pointed to Spain’s worsening economy and said they saw “little reason for optimism”, forecasting that unemployment would top 20 per cent by 2010.