Spain's Doubtful Debtors

After a brief decline late last year and into 2013, non-performing loans at Spanish banks increased again in September and now account for 12.7% of lending (up from 12.1% in August and 10.1.% a year ago):



Financial companies have been the worst performers in MSCI Spain over the last year:



Much of the underperformance, however, can be attributed to Bankia (which was nationalized in May 2012):




Can this year's positive relative performance last, or will the banks' doubtful debtors drag them down?