Santander, the eurozone's biggest bank by market value, said on Thursday its profits jumped by more than a third in the second quarter as its ratio of risky assets eased.
The number of new home mortgages in Spain was up 2 percent on a year ealier in March, the first such rise in 47 months, official figures released on Wednesday show.
Signs that the stricken Spanish economy is on the mend increased on Wednesday with official data showing that net debt owed by the banking system to the European Central Bank has plunged by 29.0 percent over 12 months.
UK bank Barclays on Thursday announced plans to seriously streamline its business, with the company's Spanish operations now considered surplus to requirements.
Spain's state-owned bank Bankia, which was nationalized on 2012 to save it from collapse, said Monday its first-quarter net profit more than doubled from the same time last year.
Spanish banks on Tuesday reported record-high bad loans in December as lenders continued to pay for the country's real estate bust even as the financial sector prepared to exit a €41-billion ($56 billion) bailout.
The eurozone aid programme for struggling Spanish banks closed as scheduled on Tuesday after providing some €41 billion ($55 billion) to get them through the debt crisis, a statement said.
Spanish banks' bad loans hit the highest level for 50 years in October, data showed on Wednesday, despite the sector getting good marks from creditors as it exits its bailout programme.
International creditors who rescued Spain's tottering banks said on Monday the sector was on the way to recovery but warned Madrid to be vigilant as the bailout winds up.
Ratings agency Moody's raised its rating outlook for Spain to "stable" from "negative" Wednesday, citing signs of real improvement in the economy and government finances.
French President Francois Hollande visits Spain on Wednesday for a bilateral summit seeking a common stance on banking supervision to avoid a repeat of the eurozone debt crisis.
International credit rating agency Moody's warned on Thursday that Spain's banks still face significant challenges despite nearly completing a €41-billion ($55 billion) eurozone-financed bailout.
Spain decided Thursday to follow Ireland's lead and exit its bank bailout without seeking a precautionary credit line in reserve, eurozone finance ministers said.
Spain's banks reported Friday record high bad loans in August, revealing persistent balance-sheet weakness despite a eurozone-funded bailout. The news contrasts with other recent positive reports about the country's banking sector.
Spain should be able to avoid any further rescue packages of its banking sector, Eurogroup head Jeroen Dijsselbloem said after a meeting of the eurozone's finance ministers on Monday.
The net debt owed by Spanish banks to the European Central Bank fell in September to the lowest level for 18 months, data from the Bank of Spain showed on Monday.
Bad loans held by Spain's banks mounted to a record high in July, the Bank of Spain said on Wednesday, a sign of persistent fragility in the bailed-out financial sector.
The International Monetary Fund (IMF) said on Thursday it will begin its fourth audit of Spain's banking sector reform next week, part of a European bailout of the sector last year.
Spanish police arrested on Tuesday a former JPMorgan Chase trader wanted by the United States on criminal charges in the massive "London Whale" fraud case.
Spanish bank Santander, the biggest in the euro zone by market value, said on Tuesday its second-quarter net profit rose eightfold as provisions against loan losses fell sharply.
