Bankia SA (BKIA), the Spanish lender whose real-estate losses helped push Spain to seek a bailout for its banking system last year, boosted profit after cutting costs and increasing revenue.
Net income was 126 million euros ($166 million) in the second quarter compared with 74 million euros in the preceding three months, the Valencia, Spain-based lender said in a regulatory filing today, without providing year-earlier figures. That missed the average 163.2 million-euro estimate of five analysts surveyed by Bloomberg.
Bankia needed about half of the 41 billion euros in European funds sought by Spain last year to support its banking industry as property-linked losses threatened to overwhelm some lenders and pile up costs for the government. Spain’s fourth-largest lender is seeking to increase annual profit to 1.2 billion euros by 2015 after passing 22.3 billion euros of soured real estate assets to a government bad bank in December.
The BFA-Bankia group, which includes Bankia’s parent, posted after-tax profit of 428 million euros, putting it on course to meet its full-year target of 800 million euros, the lender said.
Net interest income, excluding the impact of a subordinated loan from its parent, rose to 633 million euros in the second quarter from 601 million euros in the preceding three months. Operating costs fell 1.2 percent to 488 million euros over that period.
Bad loans as a proportion of total lending rose to 13.36 percent from 12.99 percent in December, the bank said, adding that its stock of refinanced loans was 22.1 billion euros of which 44 percent had been classified as “doubtful.”
Second-quarter net income was calculated by subtracting first-quarter profit from the first-half figure of 200 million euros published by Bankia today.
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