Bankia has won throughout 2018 a total of 703 million euros, 39.2% more that a year before, when adding the results of BMN, entities that absorbed last year, and having reduced the provisions and expenses. However, the fourth country's bank's revenues continue to show weakness especially due to the impact of monetary policy and continue to fall quarter by quarter, which has caused the group's business to close the year down.
By adding BMN's turnover, The bank's recurring revenues have grown by 5.5% in 2018 to 2,049 million of euros. However, at a constant perimeter, including BMN's income also in 2017, that entity's interest margin plummets 9.6%. The main reason is that the low interest rates caused by the policy of the European Central Bank (ECB) are undermining the profitability of Bankia's credit portfolio, which is mostly made up of variable-rate mortgages and therefore linked to the Euribor, now in negative rate. To this must be added, as reported by the entity, the lower return on its fixed income portfolio, among other things.
This reduction in recurring billing has not been compensated by the higher commission billing, which grows 3.4% to 1,065 million. If we add that the results from financial transactions, derived from the purchase and sale of public debt portfolios and other assets, fell by 5.2%, Bankia's total revenues last year decreased by 6.5% to 3,368 million of euros. That does not imply in any case a bad commercial evolution; Unlike, the entity has gained more than 120,500 customers in the last twelve months, increased the formalization of mortgages by 6% and the credit of consumption and financing to companies by 13%, increased the POS billing by 15.2% and 12.8% in cards and improved its market share in funds of investment in 0.17 percentage points.
Yes, the entity managed to reduce its operating costs considerably. Specific, 4.3% to 1,870 million, thanks mainly to the rapid implementation of the Employment Regulation File (ERE) applied after the integration of BMN and that involved the departure of a total of 2,000 employees. The entity also reduced the volume of extraordinary write-downs during the year, from the 312 million in provisions for this merger made in 2017 to the 85 million provisioned in 2018 to facilitate the sale of portfolios of unproductive assets. With this, Bankia reached a final profit of 703 million.