The CEO of Bankia, José Sevilla, has assured thatwill not charge minority customers for deposits,in spite of the context of low interest rates in negative, although it has affirmed that it takes a few "quarters" transferring this cost to the institutional and wholesalers.
This is what Seville has indicated in the press conference after the presentation of the results corresponding to the first half of the year of the entity, period during whichwon 400 million euros, a decrease of 22.3% over the same period last yearmainly due to a lower volume of results from financial operations (ROF) as a result of which portfolio turnover was made in 2018.
"We are not going to charge minorities, although we have been moving the negative rates charged by the European Central Bank (ECB) for liquidity to institutional and wholesalers for a few quarters, "explained the banker.
Regarding if there ismargin to lower the cost of deposits,the CEO of Bankia believes that it is "scarce", while he has affirmed that the contribution of its possible decrease would be "very small". In fact, he added that within the cost of customer deposits there are some "fairly" inflexible down payment mortgage certificates.
Similarly, he stressed that "raising prices would be fine," but has acknowledged that thehigh competitionin businesses where the margin is concentrated it makes it difficult to raise them, since there is "a lot of price stress". "I do not trust or hope that there will be improvement in the differentials of the sector in this way," he added.
In this sense, Seville has said that its plan will continue through therevitalization of income,ceasing to be focused on the development of commercial activity. However, he said that next year they will incorporate new measures to mitigate the effect of the types of negatives.
Do not contemplate a merger now
On the other hand, José Sevilla, has assured that the entity is currently "efficient" generating business, sonow it does not contemplate an inorganic growth operationalthough this situation may change in the future, for what he has said being "awake and without falling asleep on the laurels".
According to theprivatization,Seville believes that there is a "clear commitment" of Spanish governments and regulators to privatize the entity. "You have to find the most appropriate time to do it, but the objective is clearly to make Bankia a totally private entity," he said.
Also, the banker has pointed out that thetime limit set by the ExecutiveIt is in December 2021 to proceed with privatization, although he believes that the new Government will have to make the corresponding decision regarding the window and the date.
However, he has ensured that in case the market discounts in 2021 than in 2022the position of the European Central Bank (ECB) regarding rates will be reversed, a window could appear before an advance in bank quotes or the possibility of significantly reducing public participation.
Similarly, he has ensured that the deadline "presses little", since the market generally knows him, while adding thatthe lack of government does not affect themneither in relation to the Banking Ordinance Restructuring Fund (Frob) nor to the Ministry of Economy, although it does recognize a certain impact on the action.
On the other hand, the CEO of Bankia has remarked thatThere is a "big difference" between an error and a crime with respect to the IPO of BankiaIn July 2011, an operation that has been investigated at the National Court of San Fernando de Henares (Madrid) since November last year and is about to come to an end.
"It is easy to say in the past that it was probably not a good idea to go public,but there is a great distance and difference between error and crime, "said the CEO of Bankia, stressing that the operation was" highly regulated and regulated "by investment bankers, external auditors, National Stock Market Commission (CNMV ) or Bank of Spain.
In this regard, he has assured that many of the people who marched on the bench in the testimony phase of the Bankia trial agreed with this vision."The witnesses provided by the parties also considered that the IPO was not a good idea,but not a crime, "he said.
. (tagsToTranslate) Bankia (t) will charge (t) minorities (t) deposits (t) Economy (t) news (t) news (t) news of today (t) the province (t) daily of the palms (t) canarias (t) daily las palmas (t) daily.