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After signing agreements with the main companies

Bankia is the first bank to offer its customers all the available digital payment platforms in the market

Customers of the bank can make digital payments and physical stores using Apple Pay, Samsung Pay, Google Pay, PayPal and Bizum.

Communication Bankia

By  Communication Bankia

Publish on 
18 December 2018 - 11:45

  • Bankia customers can choose to pay with Apple Pay, Samsung Pay, Google Pay, PayPal and Bizum
  • These new digital solutions simplify e-commerce payments and purchases in physical stores, which are now convenient, secure, and cash-free
  • Bankia’s 2018-2020 Strategic Plan sees payment methods are one of the main drivers of growth
  • “Bankia looks upon technology as an opportunity to make life easier for our customers and to offer them the best user experience”, explains assistant general manager of Retail Banking at Bankia, Fernando Sobrini
  • Bankia has almost three million digital customers, a number which is expected to rise to five million by the end of 2020 after adding a further two million people to its base

Bankia is the first bank in Spain to offer its customers the full gamut of digital payment platforms available in the market.

Because of this, customers of the bank can make digital payments using Apple Pay, Samsung Pay, Google Pay, PayPal and Bizum.

Customers can link their PayPal accounts with Bankia channels, which is Spain’s first bank to sign an agreement of this type with this American company.

The aim is to give users access to the full gamut of digital solutions in order to make payment easier, more convenient and secure, without having to use cash.

Bankia sees technology as a very important opportunity to make life easier for our customers and to offer them the best possible user experience.

Fernando Sobrini
Deputy general director of retail banking at Bankia

Bankia sees technology as a very important opportunity to make life easier for our customers and to offer them the best possible user experience, adapting to their needs, and to their pace and level of digitalisation”, said the deputy general director of retail banking at Bankia, Fernando Sobrini.

According to Sobrini, these agreements are framed in Bankia’s firm bet on technology and are evidence that "the bank is focused on its customers and on offering them the best digital products and services".

Digital customers

Bankia’s 2018-2020 strategic plan looks upon payment methods as one of the most important drivers of growth for the years to come, which is why the bank has entered into strategic alliances with the market’s leading companies.

Bankia already has almost three million digital customers, a figure it expects will rise to five million by the end of 2020 after adding a further two million people to its base.

Therefore, by the end of the Strategic Plan, more than 65% of Bankia customers will have digital profiles and more than 35% of their purchases will be made via these channels.

In the case of digital customers, the use of mobile telephones to interact with the bank has gained in importance to become the main means of connection. In fact almost 44% of digital users use their mobile telephones alone, while 38.7% use Bankia Online on both computers and mobile phones, and 17.6% connect solely with their computers.

Media campaign

To communicate this focus on technology, Bankia has produced a communication campaign featuring 45-, 30-, 20- and 10-second advertisements to be broadcast in cinemas, on TV, radio and in digital media. Offices have also been decorated with the new campaign.

The soundtrack is a smash hit from the eighties by Italian group Righeira. The characters in the advertisement do not use cash when making routine daily transactions.

The advertisement goes straight to the point: “Don't use cash”, because Bankia is the only bank that gives customers the opportunity to pay with all digital platforms, easily and securely.

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Earnings

Recurrent attributable profit stood at 788 million euros

Bankia posts attributable profit of 703 million euros in 2018, up 39.2% year-on-year

Bankia’s chairman, José Ignacio Goirigolzarri, has highlighted that from a strategic perspective, 2018 has been “extremely important for us because we have integrated BMN in record time and with great success, opening up huge possibilities for the future”.

Communication Bankia

By  Communication Bankia

Publish on 
28 January 2019 - 07:30

  • Net interest income increased by 5.5% and gross income was up 11.3%, fuelled by a 25.3% rise in fee and commission income, all this without including BMN in 2017
  • Expenses were down 4.3% on a constant perimeter basis after synergies from the merger with BMN were captured earlier than expected
  • The CET1 Fully Loaded ratio stands at 12.51% after improving by 56 basis points during the year, and close to 800 million euros of capital being generated
  • Non-performing assets (non-performing loans and gross foreclosed assets) decreased by 6,000 million euros; more than double what was envisaged in the Strategic Plan
  • Bankia attracted 120,576 new customers over the year and increased the number of customers with direct income deposits by 103,000
  • There was a 6% rise in new mortgage loans, while both consumer loans and loans to companies rose by 13%
  • 45.4% of the bank’s customers are already digital, with 25.8% of sales executed through this channel in December

Bankia posted an attributable profit of 703 million euros in 2018, an increase of 39.2% with respect to 2017. The recurrent attributable profit stood at 788 million euros, a decrease of 3.4% compared to the 816 million euros on the same period a year earlier.

Bankia’s chairman, José Ignacio Goirigolzarri, has highlighted that from a strategic perspective, 2018 has been “extremely important for us because we have integrated BMN in record time and with great success, opening up huge possibilities for the future”, adding that the merger “has already led to an increase in our customer base”.

As a result, Goirigolzarri stated that the dividend per share out of 2018 profits will be 5% higher, meaning that “over the years, Bankia has returned more than 3,000 million euros of state aid”.

We begin 2019 with a new organisation: an organisation designed for the future; far more agile and much more ambitious. This will undoubtedly bear fruits now, but also in the medium and long term.

José Ignacio Goirigolzarri
Bankia’s chairman

Goirigolzarri is also very confident about the bank’s transformation over the year ahead. “We begin 2019 with a new organisation: an organisation designed for the future; far more agile and much more ambitious. This will undoubtedly bear fruits now, but also in the medium and long term”.

The bank’s CEO, José Sevilla, meanwhile, notes that “throughout 2018 we have grown in key segments of our business, such as consumer lending and lending to companies, in which both the number of loans and our market share have increased”.

Sevilla underlined that last year “was a key milestone in terms of cleaning up the balance sheet and boosting our solvency ratio, which will stand at 12.51% when the transactions that are in process are closed, which maintains us as one of the most solvent entities in the sector”.

Results

The year 2018 was once again marked by extremely low interest rates, prompting the bank to focus its efforts on improving the business’s dynamics to boost current revenues and lay the foundations to bring in even more revenues moving forward and, on the other hand, to speed up the process of offloading problematic assets, capturing synergies from the BMN merger to achieve many of the cost savings envisaged in the Strategic Plan ahead of schedule.

During 2018, Bankia enjoyed a 5.5% increase in net interest income to 2,049 million euros (nonetheless, if BMN’s results had been included in the 2017 income statement there would have been a 9.6% decrease). Fee and commission income went up 25.3% (3.4% on a constant perimeter basis) and net trading income rose by 11.5%, increasing gross income by 11.3% (a decrease of 6.3% if BMN is factored in) to 3,368 million euros.

The gross customer margin widened to 1.58% – in line with that generated in the first quarter of 2017, which had not been achieved since the second half of 2013. This figure was five basis points higher than in the last quarter of 2017, primarily because of the lower cost of deposits coupled with slightly higher returns on loans.

Operating expenses grew by 20.7% due to the BMN takeover, although on a constant perimeter basis, there was a fall of 4.3% because of accelerated capture of cost synergies sooner than expected. These already total 130 million euros, while the forecast was only 66 million euros. As a result, pre-provision profit went up 1.4% (-9.1% proforma) to 1,498 million euros.

Ordinary provisions for loan losses and foreclosed assets totalled 437 million euros – down 2.5% year-on-year, cutting the recurrent cost of risk by five basis points to 0.18%. Furthermore, an extraordinary allowance of 85 million euros after tax was recognised for the sale of a portfolio of non-performing assets amounting to 3,070 million euros, at the time of the agreement. On the other hand, this deal will result in a saving of 200 million euros over the subsequent three years after the transaction is closed.

Thus, ordinary profit totalled 788 million euros (down 3.4%) or 703 million euros if the extraordinary provisions related to the sale of portfolios is deducted (39.2% higher than the 505 million euros posted a year earlier, when 312 million euros were charged for the merger).

Increased dividend per share

With these results, the Board of Directors will propose to the General Meeting of Shareholders to raise the dividend per share by 5% to 11.576 euro cents (11.024 euro cents in 2017). Bankia’s shareholders will thus receive 357 million euros in total compared to 340 million euros in the previous year. The pay-out will therefore stand at 50%.

Given the FROB’s current 61.4% stake in Bankia, this dividend sees a further 219 million euros of state aid being repaid. Once this dividend has been distributed, which is planned for April, 3,083 million euros of the financial aid will have been repaid, of which 961 million correspond to the five dividend payments since 2014.

Higher quality balance sheet and greater solvency

One of the areas in which the group dedicated most effort in 2018 was to improve the quality of its balance sheet by paring back both doubtful loans and foreclosed assets. The bank reduced non-performing assets (NPAs) by 6,000 million euros from 16,900 million euros a year earlier to 10,900 million euros. This means it has more than doubled its target of a 2,900 million-euro reduction per year over the three years of the Strategic Plan.

Of the reduction in non-performing assets, 3,702 million euros correspond to doubtful loans, the total balance of which now stands at 8,416 million euros. This puts the non-performing loan ratio at 6.5% – 2.4 points lower year-on-year.

The remaining 2,300 million euro decrease in NPAs correspond to the decrease in foreclosed assets, which now stand at 2,462 million euros. On top of the major portfolio asset portfolio transaction, Bankia has offloaded 13,300 units organically, totalling sales of 646 million euros – 7.2% more than a year earlier.

Turning to solvency, Bankia saw out 2018 with a CET1 Fully Loaded ratio of 12.51%, which includes the effect of the sale of NPAs and the reorganisation of the bancassurance business. This involved an increase of 56 basis points with respect to the previous year and generating 775 million euros of capital over the course of the year.

Including the unrealised sovereign gains in the fair value portfolio, the CET1 Fully Loaded ratio stands at 12.62%. The total solvency ratio stands at 16.34%, an increase in the year of 161 basis points.

On a Phase-in basis, which is the regulatory ratio, the CET1 ratio is 13.80%, which includes the unrealised gains in the AFS portfolio and does not include the problematic assets portfolio sale. The capital buffer over and above the SREP requirement is 524 basis points.

Bankia also saw its liquidity improve. At the end of the year, the LTD ratio stood at 91.2% compared to 93.9% a year before.

More customers, more loyal and more digital

Business last year was heavily influenced by the Bankia-BMN merger and precisely because of that, commercial activity gradually rose over the course of the year. In the end, the bank managed to reach and indeed exceed the cruising speeds achieved in previous years, boosting both new and loyal customer numbers alike. It granted more mortgages, consumer loans and loans to companies; enjoyed growth in the value-added businesses such as payment services and asset management; and increased the rate at which customers are moving over to digital banking.

The bank attracted 120,576 new customers over the year and boosted customer loyalty, ending the year with a further 103,000 customers with direct income deposits.

Customers also switched over to digital banking at a faster rate, meaning that at year-end, 45.4% of customers were digital and 25.8% of sales had been made through digital channels versus 15.7% in the preceding year. Notably, 31.4% of consumer loans were arranged online, as were 19.4% of pension plans and 12.6% of mutual fund investments.

Half the bank’s customers also have a personal manager, 755,000 of whom already have an online personal advisor through the Connect with your expert service.

Lending has increased

New mortgage loans rose by 6% to 2,928 million euros, while new consumer loans increased by 13% to 2,286 million euros and 13% more loans to companies were granted for a total of 14,484 million euros. Consequently, the balances of consumer loans and loans to companies rose by 14.1% and 4.4%, respectively.

The bank also showed significant progress in the payment services business. Point-of-sale (POS) terminal turnover went up 15.2%, and customer in-store card payment turnover was 12.8% higher. All this translated into an increased market share: 12.39% of total POS turnover and 12% of card turnover.

There was a 0.3% fall in retail customer funds by year-end to 147,149 million euros. The performance of mutual funds was most notable, boosting the market share by 17 basis points to 6.55% during what was a very challenging year for the markets.

Key events in 2018

  • On 8 January 2018, Bankia and BMN culminated their legal integration with the filing in the companies register of the corresponding public deed.
  • On 11 January, BMN shareholders received one ordinary Bankia share with a par value of 1 euro for 7.82987 ordinary BMN stakes, also with a par value of 1 euro.
  • On 26 January, Bankia’s Board appointed Carlos Egea as executive member of the Board.
  • On 6 February, Fitch upgraded Bankia’s outlook from stable to positive, leaving its rating unchanged at BBB-.
  • On 27 February, Bankia unveiled its 2018-2020 Strategic Plan. The bank announced its intention to distribute over 2,500 million euros to its shareholders over the next three years; more than double the 1,160 million euros paid out during the last four years.
  • On 7 March, Bankia and Crédit Agricole agreed to exclusively negotiate establishing a consumer credit joint venture.
  • On 19 March, Bankia completed integrating its IT platforms following the merger with BMN.
  • On 22 March, Bankia and PayPal joined forces to enhance the payment experience for their customers in Spain.
  • On 6 April, S&P upgraded Bankia’s rating a notch from BBB- to BBB.
  • On 20 April, Bankia paid out a cash dividend of 340 million euros, taking the amount of state aid it has repaid to 2,864 million euros.
  • On 27 April, Bankia reached an agreement with Haya Real Estate for the management of it real-estate assets.
  • On 11 June, the bank launched "Bankia Easy”: a raft of practical solutions from Bankia to make its customers’ lives easier.
  • On 3 July, Bankia customers could start using Apple Pay to make payments using their mobile phones.
  • On 10 July, Bankia completed the acquisition of 50% of Caja Granada Vida and Caja Murcia Vida y Pensiones.
  • On 2 August, a corporate banking directorate was created specialising in the hotel sector in the Balearic Islands.
  • On 6 August, the bank announced it would reimburse the arrangement costs of loans to develop real estate with environmental sustainability certificates.
  • On 10 September, the bank placed 500 million euros of CoCos, enabling it to fulfil “anti-crisis buffer” requirements.
  • On 26 October, Bankia’s Board of Directors approved the appointment by co-option of Laura González Molero as a new independent director of the bank.
  • On 6 November, Bankia offered its customers the option of using the Samsung Pay mobile payment service.
  • On 20 November, Bankia announced an agreement with PayPal, which is the first collaboration of its kind between PayPal and a bank in Spain. The bank also revealed that the Google Pay payment service would be launched for its customers.
  • On 17 December, Bankia announced an agreement with Lone Star to pare back its NPAs by over 3,000 million euros. This, along with other deals over the course of the year, enabled the bank to reduce its problematic assets by 6,000 million euros.

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Corporate information

As part as the new flowchart of the bank

Bankia announces its new flowchart for the North Regional Division

Begoña Hernández joined the group in 2000 and has held various positions of responsibility as Commercial Director of North Madrid Regional and Commercial Director of Castilla-La Mancha, Andalucía and Extremadura.

Communication Bankia

By  Communication Bankia

Publish on 
25 January 2019 - 13:30

  • Begoña Hernández will be in charge of the private individuals business of the North Regional Division, replacing Julio Martín who becomes the corporate director of the Southwest Madrid Regional División
  • The North Regional Division, based in Logroño, includes La Rioja, País Vasco, Aragón, Navarra, Galicia, Principado de Asturias and Cantabria

Bankia has appointed Begoña Hernández as corporate director of the North Regional Division after her position as commercial director of the North Madrid Regional Division. Hernández replaces Julio Martín, who will be in charge of the Southwest Madrid Regional Division.

The North Regional Division, based in Logroño, includes the private individuals business from La Rioja, País Vasco, Aragón, Navarra, Galicia, Principado de Asturias and Cantabria.

Regarding the private individuals business, the Commercial Director of the North Regional Division is now María Dolores Ramos and Belén Martín becomes the corporate director of North Company Business, which includes La Rioja, Castilla y León, Galicia, Asturias, Cantabria, País Vasco and Navarra.

Begoña Hernández, born in Ávila, joined the group in 2000 and, since then, has held various positions of responsibility in the bank, as Commercial Director of North Madrid Regional and Commercial Director of Castilla-La Mancha, Andalucía and Extremadura.

In addition, the new corporate director of the North Regional Division was the Commercial Director of the Fund and Pension Plans Manager and director of Capital Markets for network production distribution.

Hernández holds a degree in Economics from the Autonomous University of Madrid and a master's degree in Financial Markets from the San Pablo CEU University of Madrid.

The executive also took a General Management Program course at IESE and a master's degree in coaching at the University of Deusto.

The appointment of Hernández takes place as part of the reorganization of the flowchart announced today by Bankia to support the transformation of the bank which brings the number of members of its Management Committee to twelve.

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Business

In the first year of existence of this type of transfers

Bankia, leader in instant transfers

Since last February, the month that brought instant transfers to Spain, Bankia carried out 6.6 million transfers for a total amount of 6,500 million euros

Communication Bankia

By  Communication Bankia

Publish on 
15 January 2019 - 00:00

  • The entity has also led this business by number of operations, with 28% of the transfers carried out in Spain.
  • Since last February, the month that brought instant transfers to Spain, Bankia carried out 6.6 million transfers for a total amount of 6,500 million euros.
  • Instant transfers send the funds immediately: in less than 20 seconds, the payee can use the transferred amount.
  • One of the keys to its leading position is that "Bankia is the only bank that offers massive instant transfers, such as payrolls, to companies" said Mauro Fernández Revenga, director of Business Products and Services.
  • Instant transfers are free for members of the 'Por ser tú' program, with 4.3 million customers.

Bankia has led the business of immediate transfers in 2018, the first year in which these operations have been available in Spain, reaching a 39% share of the total amount.

The entity has also led this business by number of operations, with 28% of the transfers carried out in Spain.

Since February 2018, when the instant transfer system became available in Spain, the system had transferred 16,800 million euros by the end of the year in more than 23.2 million transfers, according to Iberpay data regarding operations carried out through the ASI4 service. Of these, Bankia carried out 6.6 million transfers for a combined amount of 6,500 million euros.

Immediate transfers, which became available in Spain last February, are a new type of transfer whose main characteristic is that the funds are transferred immediately. The process lasts less than 20 seconds. That is, the amount is available to the payee after this time lapse.

In Bankia, immediate transfers can be made from offices or through remote platforms (Bankia On Line, Bankia app for smartphones and tablets, ATMs, etc.) which are operational 24 hours a day, seven days a week.

This new transfer mode is available for both individuals and companies and can be used for transfers of up to 15,000 euros.

Immediate transfers for companies

"Bankia is the only Spanish bank that offers companies the possibility of making massive transfers, such as payroll transfers, instantaneously," said Mauro Fernández Revenga, director of Products and Business Services, that "has been key when it comes to increasing the volume and the number of operations".

Last September, Bankia implemented a number of innovative measures "that place the entity at the forefront of payment management for companies", underlined Fernández Revenga. "This allows us to process massive instant payment files automatically and without the need for the client to make specific requests", he added.

Regarding individuals, these operations are free for all members of the 'Por ser tú' program, with 4.3 million customers. This includes all customers with payroll accounts.

Instant transfers coexist with ordinary transfers, which have a maximum payment tern of D + 1 (one business day after the order) and have no limit in transfer amount.

Bankia has launched the 'Payment Optimizer' for businesses, which means that the bank will process all transfer orders, including payroll transfers, in the most efficient manner possible. To do this, Bankia will issue these orders as immediate transfers whenever possible, but when it is not (for example, because the amount exceeds the maximum amount allowed by this transfer mode) they will be processed as same day value payments and, as a last resort, as regular transfers.

On the other hand, private customers can choose the transfer that best suits their needs, instant or regular.

The area in which the new type of transfers is available is the SEPA (Single European Payments Area), made up of European Union countries, Iceland, Liechtenstein, Monaco, Norway, San Marino and Switzerland.

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Ordinary dividend charged to 2018 income

Bankia increases the shareholders dividend by 5% to 357 million and shortens the debt repayment period

The dividend distribution proposal allows us to continue advancing in the return of the grants to reach 3,083 million euros.
 

Communication Bankia

By  Communication Bankia

Publish on 
24 January 2019 - 19:15

  • The Board of Directors will propose increasing the dividend to 11.576 euro cents per share against 2018 income, an increase of 5%
  • The dividend will be paid in a single lump-sum cash payment in April
  • The State will receive 219 million euros through its current stake in the Fund for the Orderly Restructuring of the Banking Sector (FROB), signifying that Bankia will have repaid a total of 3,083 million euros of its loans

Bankia's Board of Directors has agreed propose a dividend to the Shareholders’ General Meeting totalling 357 million euros charged to 2018 income, an increase of 5% over the previous financial period.

If approved, the ordinary dividend will be set at 11.576 euro cents per share, a 5% increase with respect to the previous financial period.

This will be the fifth dividend in Bankia’s history, the first of which was disbursed in July 2015, when shareholders shared 1,517 million euros.

The dividend is expected to distributed as a single lump-sum cash payment in April.

The bank has repaid 3,083 million euros of debt to the government

The Fund for the Orderly Restructuring of the Banking Sector (FROB) directly and indirectly holds a 61.4% stake in Bankia through BFA Tenedora de Acciones. If this situation has not changed on the dividend date, the bank will have repaid an additional 219 million euros to taxpayers.

The dividend will mean that the bank can repay its debt to the state earlier than scheduled, and once this payment has been made, the bank will have repaid a total of 3,083 million euros to the FROB, which can be broken down as follows:

  • 1,304 million euros on privatisation of 7.5% of Bankia’s equity in February 2014.
  • 818 million euros with the sale of a further 7% of equity in December 2017.
  • And five dividend payments, representing a total of 961 million euros for the FROB (128 million in 2014, 195 in 2015, 211 in 2016, 208 in 2017 and, when the time comes, 219 million from 2018 profits).

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CONTACT

External Communication Direction

Virginia Zafra de Llera
DIRECTOR OF EXTERNAL COMMUNICATION
vzafra@bankia.com

 

Press Relationship

Guillermo Fernández Martín
DIRECTOR OF PRESS RELATIONSHIP
gfernandezm@bankia.com

Mariano Utrilla Cortijo
mutrilla@bankia.com

Irene Rivas García
irivas@bankia.com

Belén Porras Povedano
bporras@bankia.com

María Campos Lages
mcamposla@bankia.com

María José Cabeza Calderón
jcabeza@bankia.com

 

Digital Communication

Ana Bernad Colás
DIRECTOR OF DIGITAL COMMUNICATION
abernad@bankia.com

Leticia Lucio Álvarez
llucio@bankia.com

María Navarro Caballero
mnavarro@bankia.com

   

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