Bankia: posts drop in nine-month profit; shares down

(CercleFinance.com) - Spain's Bankia said that it has further stabilised its net interest income, while cleaning up its balance sheet in the first nine months of the year, although this didn't actually result in the share rising on Monday.


The Madrid-based bank posted net profit of 575 million euros, down 22.6% year-on-year, due to smaller gains on the sale of fixed-income portfolios.

Bankia has said that it also suffered from higher provisioning requirements associated with the faster reduction of its doubtful loans.

While the group has benefited from cost streamlining in a market that has been affected by further interest rate cuts, it has also gained 165,000 customers over the past 12 months, representing a 68% increase.

At end-September, its CET1 Fully Loaded ratio - measuring the group's capital ratio - stood at 13% - the highest amongst Spain's major banks, Bankia said.

However, its share fell by over 3% after the report.

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