The CEO of Bankia, José Sevilla, trusts that bank ordered restructuring fund (FROB), dependent on Ministry of Economy, find "windows" to privatize anor package of actions of entity "in November or at end of year", Although it has been nuanced that it is a shareholder's decision. Luis de Guindos, Minister of Economy, stated last September that state prepared placement of between 7% and 9% of capital of Bankia; Now it controls 67% of shares. However, crisis in Catalonia had once again postponed ministry's plans. However, Guindos added that operation was possible to carry out this year if "solve" and "straighten" political situation in Catalonia. "" We that once integration with Banco Mare Nostrum (BMN) and Bankia was approved, which y expect to culminate in order to end 2017 or beginning of 2018, " shareholder will find windows for privatization," he acknowledged during presentation of results of The entity. In first nine months of year Bankia won 739 million, 1% more than same period of previous year, thanks to smaller provisions and benefits of financial operations. In addition, it raised revenues by commissions and improved portfolio of delinquent loans. Learn More
- Bankia wins 804 million, 22% less than 2015
- Bankia will raise dividend by 5%, up to 2.756 cents per share
The six major banks quoted — Santander, BBVA, CaixaBank, Bankia, Sabadell and Bankinter — won 11,783,000,000 in first nine months of year, 16.1% more than same period of 2016.
Only Bankinter has reduced its earnings (-6%) in period, compared to increments of largest: CaixaBank achieved 1.488 billion, 53.4% more for inclusion of Portuguese BPI; BBVA won 3.449 billion ( 23.3%); Santander, most obtained, 5.77 billion, ( 10.3%); Bankia 739 million ( 1%) and Sabadell 654 million ( 1.1%). The Popular is absorbed by Santander.
In case that a package of Bankia was sold soon, it would be second time that government desinvierte in entity, after in February of 2014 FROB sold between institutional investors 7.5% of bank for something more than 1.3 billion.
Seville acknowledged that Catalan crisis has brought more deposits "because of nervous situation that has been generated", but said that it was not a significant volume. He said that y have not participated in any campaign against entities of Catalan origin to steal customers "because we know what is suffering in se situations. "We like to win quota, but in a good lid."
The number two of bank was "convinced" that Bankia has been loyal and has helped normalize things, removing fear from customers who might have it. The most important thing for all is to have a credible financial system that has confidence of our customers, he added. No bank admits to having participated in war for savings of clients of banks of Catalan origin that were afraid, but, in private, y cross accusations, which even say to have moved to supervisor.
It did not conceal that this crisis would have "an economic impact, but it is premature to say now what it will be." If facts continue as y seem, and situation normalizes, impact could be reversible or not significant.Types impact on account
Bankia's income statement until September has been punished by negative interest rates. This entity depends to a large extent on Euribor for weight of Sareb bond portfolio, about 16 billion. Far from offering profitability, se assets are in negative types although Bankia pays nothing for established soil clause. The Euribor also influences portfolio of mortgages that are mostly referenced to this index. The proof of this situation is that if Euribor climbed 50 basic points, something that Bankia does not expect to happen for two years, income of this bank would rise to 250 million, according to entity. The public bank has overcome se problems, in part by raising revenues by commissions by 4% and reducing expenditure by 3%.
The lowest heading is margin of interest, which loses 10% in September compared to same period of 2016. The volume of credit has fallen by 1% because mortgages improve, but far from figures of past, companies do not borrow heavily and only consumption pulls, but competition of all banks has prevented Bankia from growing strong. The deposits dropped by 4.3%.
The bank, controlled by state in 67%, has reduced default balances by 11.2%, provisions in 13.3% and default ratio has remained in 8.8%, compared to 9.8% a year ago. The coverage rate has dropped from 55.1% to 53.8%.
The gross margin slowed its fall to 2.5% once result by financial operations grew by 70.6%, up to 314 million. This increase is a consequence, according to entity, of sales of fixed income portfolios mainly in first two quarters of year as anticipation of foreseeable evolution of interest rates.
Likewise, containment of administration expenses (decreased by 3.1%) allowed efficiency ratio (which measures what entity spends for every one hundred euros that it enters) remained in 48%, practically same level as at end of September of year Previous, and best figure among large Spanish entities in ir domestic business, according to entity.
The CEO of Bankia highlighted in a press release that "in a complex environment of interest rates, entity has managed to increase its profits thanks to good commercial dynamics." We have more and more customers, more linked and more satisfied that buy more value-added products, and we give more credit to both individuals and large companies and SMEs.Clients captured
In last twelve months, bank has captured 141,000 customers, in net terms, while users with household revenues increased by 103,000, and number of cards grew by 168,000.
"From standpoint of solvency," "One More Quarter", Bankia managed to improve its numbers, with a capital ratio of CET1 BIS III ' fully loaded ', highest quality and most followed by analysts, of 14.16%, which means 34 basic points more than in previous quarter . The capital figure does not include gains in sovereign debt portfolios. To be included, ratio would have been 14.55%. This data is not yet required by authorities. After absorption of BMN, Bankia will reduce two points this level of capital to remain above 12%.
The supervisors control so-called regulatory capital, known as ' phase-in ', capital ratio CET1 BIS III, which reached 15.81%, which means 1.11 percentage points more with respect to December (14.7%) and 45 basic points above closure of Preceding quarter. Profitability on own resources (ROE) has fallen from 8.2% to 8.1%.