Bankia obtained a net profit of 142 million euros in the first half of 2020, 64.4% less than a year earlier, after providing 310 million euros in provisions to face the crisis caused by the coronavirus pandemic, as reported this Tuesday to the CNMV.
In the first three months of 2020, the bank earned 94 million and allocated 125 million to provisions, but between April and June, during the alarm period and with much of the economy paralyzed, the profit was 48 million after providing an extraordinary 185 million, Bankia details in a press release.
The objective of these endowments is to “further” strengthen the balance sheet and thus have “maximum flexibility” to meet the future financial needs of customers, as stressed by the entity.
Despite these provisions, with the regulators’ easing measures, the bank’s top quality capital ratio, CET1 “fully loaded”, with all the requirements met, reached 13.95%, that is, it improved by 100 basic points in just three months, which would place Bankia as the solvency leader of the great Spanish banking system.
Bankia’s president, José Ignacio Goirigolzarri, has acknowledged that the second quarter of 2020 has been “one of the most complex” that the entity has had to face in its history. In this sense, Goirigolzarri has underlined that the confinement forced to completely change the entity’s product catalog “from one day to the next”, a challenge that was achieved thanks to the flexibility of its systems and the “tremendous effort” carried out by all Bankia professionals.
“Of course, the pandemic has also had an impact on our results”, explained Goirigolzarri, after highlighting that Bankia has been able to increase its solvency again in a “so complex” quarter and is already close to 14% in ratio of capital, with which he remains “as an outstanding leader of the great Spanish banks”.
For his part, the CEO, José Sevilla, explained that the entity starts the second half of the year with “growing income, better doubtful ratios and a significant increase in solvency, which allows us to be optimistic about the evolution of Bankia in the whole of the year 2020 ».
In business terms, gross customer loans closed June at 125,603 million euros, 4.1% more than in December despite the Covid-19. Of that amount, the non-doubtful credit balance (housing, consumption, companies and developer) reached 110.4 billion euros, with a year-on-year expansion of 3.3% and 3.5% since the end of 2019, especially spurred by financing granted with ICO guarantees.
Its ‘Stock ‘of credit to companies grows 19.7% year-on-yearl and its market share rose to 8% in May, from 7.41% in the same month last year; after having granted 7,450 million euros with credits guaranteed by the ICO, which represents 18% of the total credit to companies granted by the entity in the semester. These are figures up to June, but already in July it has exceeded them with 8,370 million disbursed, which increases said market share to 9%.
Despite the pandemic, the entity noted that it has also grown 0.1% year-on-year in mortgages, with 1,461 million euros of formalizations in the semester. Its share of new production in May was 8.16%, also higher than 6.63% a year ago.
“In Bankia we have witnessed a recovery in the private business in the second quarter, with which the activity and commercial dynamism of the bank are registering important advances, although we still have a way to go”, indicated the CEO of the entity .
Regarding the liability business, retail customer funds increased 2.3% due to the growth of strict deposits (+ 3.3%) due to the rise in savings during Covid-19. In the second quarter, assets managed in investment funds, 4.6% in pension plans and 41% in insurance also grew compared to the first quarter.