Liberbank’s capital increase: connecting the dots

In a context of a €500 million capital increase, some Mexican investors are to purchase about 8% of Liberbank’s shares. After growing by 63% since it started listing in the Madrid stock Exchange just one year ago, the entity currently holds a dominant position in the origin regions of the four “seed” savings banks, having more than 25% of credits and deposits. Liberbank’s efficiency ratio of 48% is one of highest within the national financial landscape. The bank was able to turn its 2012’s losses of € 1.8 bn into profits of 48 million in 2013.

Liberbank is the combination of Cajastur, Caja Castilla- La Mancha, Caja de Extremadura and Caja Cantabria. It was born with total assets of €53.2 bn, as well as 1,339 offices and 6,838 employees.

Furthermore, Spanish Treasury issued public debt again on Tuesday. Amidst fears of an eventual bubble affecting the EU debt markets- “bubbles do not exist until they burst,” reminded The Corner analyst Francisco López- Spain’s short-term debt achieved beat again expectations by selling €3.5 bn of 3-month and 9-month bills at a price lower and higher, respectively, than last issuances. The public Treasury has already reached its gross goal of 35.77% for short-term debt issues. In two years, Spain will retake its medium and long term auctions with the objective of selling €3.5 bn in bonds holding a maturity of 5 and 10 and 10 years.




About the Author

Julia Pastor
Julia Pastor has broad experience in business writing for Consejeros Media Group at Consejeros, Consenso del Mercado and The Corner. Previously, she worked for the financial news agency GBA and contributed to El País Business. She holds a Master's in Financial Journalism and a degree in English from the Complutense University in Madrid.

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