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Bankia Q4'16 net profit declines YOY

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Bankia Q4'16 net profit declines YOY

An extraordinary provision to cover court-ordered reimbursements to mortgage borrowers impacted Bankia SA's fourth-quarter 2016 results.

The bank reported fourth-quarter 2016 profit attributable to the group of €73 million, down from €185 million in the same period in 2015. Bankia booked in the quarter €65 million in extraordinary provisions to cover court-mandated reimbursements to mortgage borrowers. The figure is lower than €184 million of extraordinary provisions in the fourth quarter of 2015, but Bankia noted that the year-ago figure was partly offset by a one-off gain of €118 million from the sale of City National Bank of Florida to Chile-based Banco de Credito e Inversiones SA in late 2015.

Fourth-quarter 2016 net interest income amounted to €517 million, down from €658 million a year earlier. Total net fees and commissions also declined year over year, to €213 million from €228 million.

For full year 2016, Bankia reported profit attributable to the group of €804 million, down from €1.04 billion in 2015. EPS declined on a yearly basis to 7 cents from 9 cents.

Full-year 2016 ROE decreased on a yearly basis to 6.7% from 9.0%.

The nonperforming loans ratio, excluding transactions with parent BFA Sociedad Tenedora de Acciones SAU, stood at 9.8% at the end of 2016, compared to 10.8% a year ago; the NPL coverage ratio declined year over year to 55.1% from 60.0%.

The bank's phase-in common equity Tier 1 under BIS III stood at 14.70% at Dec. 31, 2016, compared to 14.81% at the end of September 2016 and 13.89% at the end of 2015. The fully loaded CET1 ratio stood at 13.02% at 2016-end, compared to 13.24% at the end of September 2016 and 12.26% a year ago.

Bankia's board of directors proposed to pay shareholders a dividend of 2.76 cents per share for 2016, up from 2.63 cents per share paid in respect of 2015 earnings.