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Bankia proposes to increase dividend out of profit for 2016 by 5% to 317 million euros

27 January 2017

Category: Corporate

  • The Board of Directors has agreed to recommend to the General Meeting a dividend of 2.756 euro cents per share
  • With its current shareholding, BFA, which is 100 controlled% by the State, would receive 209 million euros, bringing the total amount of state aid repaid by Bankia to 1,836 million euros

Bankia's Board of Directors has agreed to recommend to the General Meeting of Shareholders that a dividend of 2.756 euro cents per share be paid out of last year's profits.

If this recommendation is accepted, Bankia will return a total of 317 million euros to its shareholders in the form of dividends. As in the previous two years, the dividend will be paid in cash.

The amount of the dividend proposed by the Board of Directors is 5% higher than the dividend paid one year ago out of profit for 2015, which amounted to 2.625 euro cents per share. Out of the profit for 2014 the Bank was able to pay a dividend of 1.75 cents.

The return to shareholders has thus increased 57.5% since Bankia paid its first dividend in July 2015, despite the difficult environment for the financial sector. The cumulative payment for these three years will total 820 million euros.

 Dividend Bankia

A new step in the return of aid

BFA, an entity fully owned by State through the Fund for Orderly Bank Restructuring (FROB), is Bankia's principal shareholder. As of the end of last year BFA held 65.9% of Bankia's shares. The dividend distribution thus allows the Bank to continue to repay the state aid it received.

If BFA's interest in Bankia remains unchanged at the date of payment of the dividend, Bankia will return an additional 209 million euros to taxpayers.

Between the privatisation of 7.5% of Bankia's shares in February 2014, which brought proceeds of 1,304 million euros, and the three dividends paid, the State will have recovered a total of 1,836 million euros.

 Aid repayment Dividend Bankia in 2016

"We are very satisfied to be able to recommend another dividend to our shareholders and that the proposed dividend is 5% greater than that paid one year ago. This is possible because despite the difficult environment for the financial sector and its impact on results, Bankia is capable of making a profit and maintaining capital adequacy levels that allow it to improve the return to its shareholders," said Bankia chairman José Ignacio Goirigolzarri.

According to Goirigolzarri, the fact of paying a dividend "has an added value in that it allows us to make further progress in repaying the state aid received. In these three years we will have returned more than 1,800 million euros to taxpayers and we are firmly committed to continue to work to increase that amount as far as possible."

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