Bankia Posts Record 21.2 Billion Euros After-Tax Loss
BFA-Bankia (BKIA), whose collapse last May helped push Spain into a European banking bailout, posted a record after-tax loss of 21.2 billion euros ($27.6 billion) as it cleansed soured assets from its balance sheet.
The loss widened from 4.95 billion euros in 2011, Madrid- based Bankia said in a filing to regulators today. The firm booked 26.8 billion euros in provisioning charges in 2012 after its listed Bankia unit posted a net loss of 19 billion euros compared to a loss of 2.98 billion euros in 2011, it said.
Spain sought as much as 100 billion euros in European bailout funds last year on concerns that mounting losses at Bankia, crafted from a merger of seven savings banks, would pile pressure on government finances. After the group took 18 billion euros of state aid, Chairman Jose Ignacio Goirigolzarri is targeting earnings of 1.2 billion euros in 2015 as he shifts soured real estate to Spain’s new bad bank, sheds about 6,000 staff and closes 39 percent of its branches.
The after-tax loss would have been 19.4 billion euros taking into account gains from an exchange of hybrid debt instruments, the group said.
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