Bankia’s 2018-2020 strategic plan is forecasting a significant increase in profits, the distribution of nearly half of these profits to shareholders and improvments in various profitability and efficiency measures.
Bankia BMN merger
Bankia posted net profit of 816 million euros in 2017, up 1.4% from a year earlier, thanks to the progressive stabilisation of the bank’s gross margin due to a greater marketing push.
Fernando Rodríguez |Bankia’s integration of BMN has transformed the stock in the eyes of analysts and fund managers: the restructuring period is over and now it’s time for growth. If the execution of the merger avoids the limited risks which it would seem to involve, the macroeconomic scenario in Spain, and interest rates on the rise in Europe, should favour the bank’s business and boost Bankia’s share price, which has already heated up of its own accord.
The board of directors of Bankia and Banco Mare Nostrum (BMN) have approved the merger of the two lenders via a share exchange of 1 Bankia x 7,82. Furthermore, Bankia values BMN at 825 million euros. The deal is expected to be closed in December this year, and will give rise to Spain’s fourth largest bank, bigger than Sabadell.