Fernando Fernández is a member of the board at Bankia and Red Eléctrica. Apart from the challenges presented by the macroeconomic environment and the technology revolution, he believes that Spain’s banks have to establish a new kind of relationship with their clients and consolidate the sector’s new size.
Deutsche Bank is still betting on the Spanish property market and has bought €400 million in doubtful property developer loans from Bankia. The deal was carried out by the German bank’s funds, which could have paid around 150 million euros for the assets.
Bankia, the lender which had to be bailed-out in 2012 with more than 22 billion euros of taxpayers’ money, is in the news because of the money it has now returned to its minority shareholders. Not for being the Spanish bank which recorded the biggest profits last year.
Bankia’s current management team has decided to give back to minority shareholders the money they invested in the banks’s shares in July 2011 with 1% annual interest. The proposal is a sensible one because it benefits shareholders and tax payers, as well as Bankia’s image and balance sheet.
Bankia, created from the merger of seven savings banks lead by Cajamadrid and Bancaja, and its July 2011 stock market listing, have become a major headache for many people: the bank’s shareholders, the current management team, the auditor, the Bank of Spain and the stock exchange regulatory body CNMV.
Renta 4 | Spain’s big banks H2 results expected to be weaker.
Spain’s top five banks posted a combined net profit of 7.989 billion euros in the first half of 2015, up 48 percent from a year earlier, thanks to the improving economic situation and a decline in bad loans provisions.
The Corner | July 27, 2015 | Spain’s bailed-out lender Bankia saw its first-half profit rose 11.5 percent from a year ago, as it reported on Monday. Net profit rose 10.3 per cent to €311m, versus a consensus of analysts’ expectations of €277.8m. Charges against bad debts fell and offset weaker revenue from lending.
MADRID | April 24, 2015 | By Fernando G. Urbaneja | Bankia held its general meeting in Valencia (headquarters of one of the integrated in the brand new boxes) this week to approve its 2014 results –the year of the firm’s regeneration– and design its future roadmap. One of its non-explicit goals is to accelerate the partial and progressive privatization of the entity before November general elections in Spain.
MADRID | April 1, 2015 | By Fernando Barciela | The Corner caught up with Luis Iturbe, a board member with Spanish insurance giant, Mapfre. He emphasises the improving health of the Spanish banking sector, but says that the capital increases by lenders, notably Santander, have prevented the Spanish stock market to reach the same revaluations as its peers. He also states that markets in London and New York dished out an unreasonable level of punishment to the euro and Greece.