Bankia H1’16 interest margin lower than forecast; provisions contained

Bankia’s interest margin fell more than expected in the first half of 2016, but the lender’s ability to lower provisions and costs offset this to some extent, Norbolsa says.

Net interest income declined 19.1% to 1.123 billion euros in the first half from a year earlier. And Bankia has cut its forecast for 2016 net interest income to 2.2 billion euros from 2.3 billion, Norbolsa analyst Amaya Miñambres notes.

On the upside, Bankia’s loan book showed a more positive trend in the second quarter (flat vs Q1 compared with our estimate for -1%), Miñambres added.