Santander, BBVA May Lose 4% of Profit With New Spanish Tax (1)

A new windfall tax on Spanish banks could cut about 4% off the profit of the country’s largest lenders, according to analysts’ estimates.

Banco Santander SA, the country’s biggest bank, could see earnings drop by 3.5% in 2023 if the government opts to implement the tax as a levy of 10 basis points on deposits, Morgan Stanley analysts Alvaro Serrano and Alistair M. Woods wrote in a note Tuesday.

Banco Bilbao Vizcaya Argentaria SA could suffer a cut to earnings per share of 4.6%, they said. Meanwhile, Goldman Sachs Group Inc. analysts warned of a 3%-4% reduction to net ...