Newsletter #7 - 1st half 2016 Earnings Results
BKIA Share

Bankia - Shareholders and investors

Bankia earns €481Mn up to June
With significant progress in the Group’s commercial strategy, efficiency and risk management
  • The Group ends the first half of 2016 with an attributable profit of 481 million euros.
  • The Bankia Group maintains its leadership in efficiency. On a constant perimeter basis, operating expenses are down 2.3% compared to the first half of 2015, and down 3.1% compared to the previous quarter, bringing  the efficiency ratio to 46.6%, one of the best in the sector.
  • The new commercial positioning has contributed positively to business performance. The number of customers who have their income paid directly into their account is up 4.5% in the half-year and the number of new credit cards issued has quadrupled compared to the first half of 2015.
  • New lending increases by 2.5% the outstanding balance of loans in the consumer finance and business segments since June 2015, in line with the Group’s goal of extending more credit to these key segments.
  • Retail customer funds have increased compared to June 2015. The growth is concentrated in mutual funds (+7.3%), demand accounts (+27.2%) and savings accounts (+12.7%), which continue to attract customer funds transferred out of term deposits.
  • Risk management has continued to improve, allowing a reduction in provisioning for loan losses and impairment of foreclosed assets. This improvement is reflected in the cost of risk, which at close of June 2016 stands at 28 bps, an improvement of 15 bps over the half-year.
  • The balance of NPLs has fallen 9.6% since December 2015 and is down 6.5% compared to 1Q 2016, making ten consecutive quarters of falls. This decline in NPLs has reduced the Group’s NPL ratio, which at the end of June 2016 stands at 9.8%, 75 bps less than in 1Q 2016 and 100 bps below that recorded in 4Q 2015.
  • The solvency indicators registered a further improvement during the quarter. At the end of June 2016, the Group has a CET 1 phase-in ratio of 14.53% (+64 bps in the half-year) and a CET 1 fully loaded ratio of 12.89% (+63 bps since December 2015), making it one of the most solvent institutions in the Spanish financial system.

Access 2Q16 Earnings Report

News
Bankia achieves net attributable profit of 481 million euros in year to June, down 13.4%
22 July 2016
Bankia obtained a net attributable profit of 481 million euros in the first half of 2016, 13.4% less than in the same period of the previous year. This decline is explained by the deconsolidation of City National Bank of Florida (CNB) following its sale in 2015, the depreciation of the SAREB bonds and the decline in interest rates. If the contribution of CNB is excluded from the previous year’s figure, the decline is 8.7%.
Bankia launches "Payment between friends" for making free and instant payments from one mobile to another
28 June 2016
Bankia has added the “Payment between friends” service to its Bankia Wallet application, which can be used to make secure payments between private individuals, from one mobile telephone to another, freely and within seconds. Users simply have to know the telephone number or email of the recipient to carry out the transaction.
Bankia launches “Inveinte”, a free solution that allows companies to identify the official aid programs they may be eligible for
14 June 2016
Bankia has launched “Inveinte”, a free tool that enables companies, whether they are customers of the bank or not, to identify the official aid programs that they may be eligible for to develop their research, development and innovation projects (R&D+i).
Bankia and Innsomnia launch Spain’s first fintech incubator and accelerator
10 June 2016
Bankia and Innsomnia today announced the launch of Spain’s first fintech (financial technology) incubator and accelerator, called Bankia Fintech by Innsomnia, based in Valencia. In this first round, the project will select ten companies that will be provided with training in numerous disciplines in a bid to convert their ideas into viable future businesses.
Goirigolzarri: “Banking industry must improve its reputation by listening to and acting upon what society is calling for”
09 June 2016
One of the biggest challenges facing the Spanish financial system is to enhance its image and reputation: a task that it must tackled “by listening to and acting upon what society is asking from us for and explaining what we do and why,” Bankia Chairman, José Ignacio Goirigolzarri, stated today.
Indicators

Data as of June 30th, 2016. Click on each item for further information.

ATTRIBUTABLE PROFIT 481
million €

ROE 8.2%
1H16

EFFICIENCY RATIO 46.5%
2Q16

CUSTOMER FUNDS +1.945
million € in 1H16

NEW LENDING CONSUMER & BUSINESS +2.5%
vs 2Q15

NPL REDUCTION 1.244
million € in 1H16

COVERAGE RATIO 60.8%
CET 1 FULLY-LOADED RATIO 12.89%
Material disclosures
08 July 2016
DBRS Ratings Limited and Scope Ratings AG assign credit ratings.
23 June 2016
DBRS Ratings Limited upgrades rating of company’s mortgage covered bonds.
Studies and presentations
22 July 2016
Press Kit Bankia Results 2Q16: presentations, videos, multimedia gallery...
20 July 2016
Discover Bankia's new web: easier, more intuitive and with more services available
Bankia Share: trading price, equity analysts recommendations, share capital, etc.
2015 ANNUAL REPORT: with all important milestones undertaken by BFA-Bankia during 2015.
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