Bankia obtained a net profit attributed to 739 million euros in first nine months of 2017, which represents an increase of 1% compared to same period of previous year, due to lower provisions for decline of delinquency and higher results by Financial operations. The public bank has raised revenues by commissions by 4% and has reduced expenditure by 3%, but impact of low interest rates and fall of credit have caused all margins in income statement of entity presided by José Ignacio G Oirigolzarri.
The most descending game is margin of interest, which loses 10% in September compared to same period of 2016. The credit has fallen by 1% while deposits did it 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 CEO of Bankia, José Sevilla, noted 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.Learn More
- Bankia wins 804 million, 22% less than 2015
- Bankia will raise dividend by 5%, up to 2.756 cents per share
The entity, which is in process of merging with also public bank BMN, led by old Caja Murcia. Luis de Guindos, Minister of Economy, stated last September that state prepared placement of between 7% and 9% of entity's capital; Now it controls 67% of shares. However, crisis in Catalonia had once again postponed ministry's plans.