AGL 37.89 Decreased By ▼ -0.26 (-0.68%)
AIRLINK 124.10 Increased By ▲ 2.59 (2.13%)
BOP 5.67 Decreased By ▼ -0.18 (-3.08%)
CNERGY 3.75 No Change ▼ 0.00 (0%)
DCL 8.55 Increased By ▲ 0.15 (1.79%)
DFML 40.48 Decreased By ▼ -0.41 (-1%)
DGKC 87.10 Increased By ▲ 2.50 (2.96%)
FCCL 33.98 Increased By ▲ 1.28 (3.91%)
FFBL 66.01 Increased By ▲ 0.51 (0.78%)
FFL 10.20 Increased By ▲ 0.15 (1.49%)
HUBC 104.45 Increased By ▲ 0.65 (0.63%)
HUMNL 13.45 Increased By ▲ 0.20 (1.51%)
KEL 4.78 Increased By ▲ 0.35 (7.9%)
KOSM 6.84 Decreased By ▼ -0.25 (-3.53%)
MLCF 38.84 Increased By ▲ 1.34 (3.57%)
NBP 60.35 Increased By ▲ 0.10 (0.17%)
OGDC 179.65 Increased By ▲ 7.40 (4.3%)
PAEL 24.97 Increased By ▲ 0.17 (0.69%)
PIBTL 5.71 Increased By ▲ 0.01 (0.18%)
PPL 153.00 Increased By ▲ 11.31 (7.98%)
PRL 22.79 Increased By ▲ 0.07 (0.31%)
PTC 14.91 Increased By ▲ 0.17 (1.15%)
SEARL 66.85 Increased By ▲ 2.29 (3.55%)
TELE 7.01 Decreased By ▼ -0.13 (-1.82%)
TOMCL 35.70 Increased By ▲ 0.20 (0.56%)
TPLP 7.32 Increased By ▲ 0.03 (0.41%)
TREET 13.99 Decreased By ▼ -0.21 (-1.48%)
TRG 50.95 Decreased By ▼ -0.80 (-1.55%)
UNITY 26.40 Decreased By ▼ -0.20 (-0.75%)
WTL 1.23 Increased By ▲ 0.01 (0.82%)
BR100 9,717 Increased By 233.5 (2.46%)
BR30 29,237 Increased By 866.2 (3.05%)
KSE100 90,860 Increased By 1893.1 (2.13%)
KSE30 28,458 Increased By 630.4 (2.27%)

Falling bad debt charges enabled Spain's bailed-out Bankia to post a near 40 percent rise in net profit for 2015, although a legal bill linked to its troubled flotation is clouding its outlook. Bankia bounced back quickly from huge losses in the wake of a property crisis, turning a profit in the year after its 2012 rescue. The bank was cleansed of toxic assets, cut costs and has also been working on increasing lending to businesses.
It is now entering a key phase for its return to private hands as Madrid, which owns around 64 percent of the bank, vowed to sell off Bankia by the end of 2017. Bankia said on February 01 its net profit for 2015 came in at 1.04 billion euros ($1.13 billion) compared to 747 million euros a year earlier, as the economy in Spain improved and it set aside less in charges against problem loans.
The bank booked extra provisions against potential legal claims from small investors who lost money in its stock market flotation from mid-2011.
The bank had to be bailed out less than a year later, and many shareholders argue they were misled.
Those provisions - at 424 million euros for 2015 and which it registered partly against its profit and partly against capital - pushed down return on equity (ROE) to 9 percent in the fourth quarter.
Bankia had aimed to lift this measure of profitability to around 10 percent by the end of 2015. The bank said that without the provisions, ROE would have been 10.6 percent.
Like Spanish peers, low interest rates and fierce competition to lend are also hindering Bankia's ability to ramp up revenues. In 2015 net interest income, or earnings on loans minus deposit costs, was down 6.4 percent on the year, though that was slightly better than expected.
Some domestic rivals such as Caixabank, Sabadell or Popular showed progress on this front in the fourth quarter, but Bankia said NII fell 3.3 percent in the October to December period from the previous three months.

Copyright Reuters, 2016

Comments

Comments are closed.