Newsletter #8 - 3rd quarter 2016 Earnings Results
BKIA Share

Bankia - Shareholders and investors

Bankia earns €731mn up to September
It continues strengthening its solvency ratios and improves profitability quarter on quarter
  • The Bankia Group records an accumulated attributable profit of 731 million euros and continues strengthening its solvency ratios, which now stand above 13.2% (CET 1 Fully Loaded). For yet another quarter the cost containment and lower provisioning needs trend has been maintained, which has compensated the impact of the interest rates on the Groups’ margins, allowing attributable profit in 3Q 2016 to increase by 2.2% from the previous quarter to 250 million euros.
  • Lending to target segments continues to rise: new loans increase the outstanding balance of consumer finance and lending to businesses by 1.9% from September 2015.
  • New customer funds grow 4.1% year-on-year, with significant gains in mutual funds (+9%), demand accounts (+16.5%) and savings accounts (+12.5%), which are drawing the funds that are shifting out of term deposits.
  • Consolidation of the multichannel strategy: as of September 2016 multichannel customers account for 36.3% of Bankia’s total customers compared with 30.6% at September 2015.
  • The progressive reduction in the cost of risk continues thanks to the improved quality of the portfolios and lower provisions. As of September 2016 the cost of risk for the year in progress stood at 24 bps, with a year-on-year improvement of 26 bps and 19 bps from December 2015.
  • The Group's non-performing loans decline 13.1% from December 2015 and by 3.9% in the quarter, maintaining the coverage ratio high at 60.5% at the end of September 2016 (+50 bps over December 2015).
  • Bankia remains one of the most solvent banking groups in the Spanish financial system. At the end of September 2016 the CET 1 phase-in ratio stands at 14.81% (+161 bps year-on-year and +28 bps in the quarter) and the CET 1 fully loaded ratio (excluding gains from the available-for-sale sovereign portfolio) stands at 13.24% (+151 bps from September 2015 and +35 bps in the quarter), having generated 693 million euros of capital in 2016.

Access 3Q16 Earnings Report /View 3Q16 Results Infographic

News
Goirigolzarri: “Bankia is boosting online sales by 50% year on year”
04 October 2016
Customer have changed how they deal with the bank. A few years ago they chose to start using ATMs and the Internet to carry out transactional banking; recently this tendency has shifted from just performing transactions to now include contracting products. This is growing at a vertiginous rate and now accounts for a significant share relative to in-branch sales.
Bankia’s new “Big Data” platform recognised at the Computerworld 2016 awards
03 October 2016
Bankia’s “Big Data” project has been awarded the Computerworld 2016 award in the “Innovation in banking” category. The Computerworld Awards are one of the most prestigious in the sector and are presented every year by the international publication of the same name. The awards recognise companies or public institutions that have demonstrated an exceptional ability to disseminate and use information technology.
Bankia selects 15 start-ups to incubate and accelerate and will create a Fintech Club for all of the program’s candidates
13 September 2016
The Bankia Fintech by Innsomnia program has completed its stage to select the start-ups for incubation and acceleration. However, it is increasing the number of initially selected fintech start-ups (companies that combine finance and technology) from 10 to 15 due to the excellent quality of the candidates, which will all take part in the program promoted by Bankia and managed by Innsomnia.
Bankia recognised as one of the most sustainable companies in the world following its inclusion in the Dow Jones Sustainability Index (DJSI)
08 September 2016
Bankia has been selected to join the Dow Jones Sustainability Index (DJSI), which recognises the bank as one of the most sustainable companies in the world. Only 27 banks around the globe form part of this index (of which only ten are European, including three Spanish banks), which evaluates the financial, environmental and social performance of different companies.
Indicators

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

ATTRIBUTABLE PROFIT 731
million €

ROE 8.2%
9M16

EFFICIENCY RATIO 47.7%
9M16

CUSTOMER FUNDS +1.724
million € in 9M16

NEW LENDING CONSUMER & BUSINESS +1.9%
vs 3Q15

NPA REDUCTION -2.028
million € in 9M16

COVERAGE RATIO 60.5%
3Q16

CET 1 FULLY-LOADED RATIO 13.24%
3Q16

Material disclosures
28 September 2016
Study of alternatives for restructuring credit institutions owned by the FROB.
Studies and presentations
26 October 2016
PRESS KIT BANKIA RESULTS 3Q16: PRESENTATIONS, VIDEOS, MULTIMEDIA GALLERY...
29 September 2016
Presentation by Bankia´s CFO at the BoAML Annual Financials CEO Conference - London 29/09/2016
26 October 2016
Transparency: visit our Corporate Governance and Remuneration Policy section
Bankia Share: trading price, equity analysts recommendations, shareholder structure, share capital, etc.
Discover Bizum: new Payment between Friends service
Calendar
Citi Global Financial Conference 2016 - Hong Kong
24 November 2016
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