Key Figures:
Bankia Group posts half-year attributable profit of 142 million euros.
Quarterly performance of Core Result is very positive (+19.6% vs. the first quarter of the year), thanks to buoyant net interest income (1.3%) and fee and commission income (+5.8%). In the half-year it falls 3.6% compared to the same period in 2019, due to the impact of the 12-month Euribor curve on net interest income and the reduced contribution from fixed income securities.
The group has set aside 310 million euros to cover the potential impact of COVID-19 on its loan portfolio and real estate assets. Of this total, 185 million euros were recognised in the second quarter.
Performing loans to corporates and SMEs grow 5.1% in the half-year, driven by new lending with ICO guarantees, totalling a disbursed amount of 7,450 million euros (18% of the Group’s total loans to corporates and SMEs). Bankia’s market share rises to 8% in loans to corporates and SMEs (+59 basis points year-on-year) and 6.09% in consumer loans (+38 basis points year-on-year).
The situation resulting from COVID-19 has accelerated the digitisation of the bank’s customers. In June 2020, digital sales have reached 39.9% of the group’s total sales (+15.5 percentage points year-on-year), and 57.1% of customers operated through digital channels (+7.4 percentage points).
At the end of June, the gross NPA ratio stands at 6.2%, with NPA coverage of 50% after the provisions set aside for COVID-19, an increase of 1.3 percentage points compared to December.
The institution has drawn the maximum amount available under the ECB’s TLTRO III facility (22,919 million euros).
Turning to capital ratios, Bankia has a CET1 ratio phase-in of 14.32% and a CET1 fully loaded of 13.27%. These levels entail a buffer of +594 basis points above the regulatory minimum for 2020 at the phase-in CET1 level and +489 basis points on a fully loaded basis. Moreover, the easing of capital requirements in response to the COVID-19 crisis has had a positive impact on capital amounting to +68 basis points for the Group, which has not yet been recognised and which would place the CET 1 fully loaded regulatory ratio 13.95% at 30 June 2020.
Key figures
| |
Jun-20 |
Dec-19 |
Change |
| Balance sheet (€ million) |
| Total assets |
218,455 |
208,468 |
4.8% |
| Loans and advances to customers (net) |
122,310 |
117,444 |
4.1% |
| Loans and advances to customers (gross) |
125,603 |
120,623 |
4.1% |
| On-balance-sheet customer funds |
146,896 |
143,464 |
2.4% |
| Customer deposits and clearing houses |
128,318 |
124,785 |
2.8% |
| Borrowings, marketable securities |
15,619 |
15,697 |
(0.5%) |
| Subordinated liabilities |
2,959 |
2,983 |
(0.8%) |
| Total customer funds |
177,218 |
174,267 |
1.7% |
| Equity |
12,883 |
13,142 |
(2.0%) |
| Common Equity Tier I - BIS III Phase In |
10,957 |
11,120 |
(1.5%) |
| Solvency (%) |
| Common Equity Tier I - BIS III Phase In |
14.32% |
14.32% |
- |
| Total capital ratio - BIS III Phase In |
18.34% |
18.09% |
+0.25 p.p. |
| Ratio CET1 BIS III Fully Loaded |
13.27% |
13.02% |
+0.25 p.p. |
| Ratio CET1 Fully Loaded ex unrealised gains in the fair value sovereign debt portfolio |
13.20% |
12.85% |
+0.36 p.p. |
| Risk management (€ million and %) |
| Total risk |
133,076 |
128,156 |
3.8% |
| Non performing loans |
6,464 |
6,465 |
(0.0%) |
| NPL provisions |
3,519 |
3,491 |
2.9% |
| NPL ratio |
4.9% |
5.0% |
+0.1 p.p. |
| NPL coverage ratio |
55.6% |
54.0% |
+1.6 p.p. |
| |
Jun-20 |
Jun-19 |
Change |
| Results (€ million) |
|
|
|
| Net interest income |
922 |
1,018 |
(9.4%) |
| Gross income |
1,607 |
1,671 |
(3.9%) |
| "Core" result (Net interest income + Net fees and commissions - Operating Expenses) |
616 |
639 |
(3.6%) |
| Pre-provision profit |
717 |
759 |
(5.6%) |
| Profit before taxes pre-COVID-19 provision |
480 |
540 |
(11.2%) |
| COVID-19 provision |
(310) |
- |
- |
| Profit before taxes post COVID-19 provision |
170 |
540 |
(68.6%) |
| Profit/(loss) attributable to the Group |
142 |
400 |
(64.4%) |
| Key ratios (%) |
| Cost to Income ratio (Operating expenses / Gross income) |
55.4% |
54.6% |
+0.8 p.p. |
| R.O.A. (Profit after tax / Average total assets) (1) |
0.1% |
0.4% |
-0,3 p.p. |
| RORWA (Profit after tax / RWA) (2) |
0.4% |
1.0% |
-0.6 p.p. |
| ROE (Profit attributable to the group / Equity) (3) |
2.2% |
6.3% |
-4.1 p.p. |
| ROTE ( Profit attributable to the group / Average tangible equity) (4) |
2.3% |
6.5% |
-4.2 p.p. |
| ROE (Profit attributable to the group / Equity) pre COVID-19 |
5.6% |
6.3% |
-0.7 p.p. |
| ROTE ( Profit attributable to the group / Average tangible equity) pre COVID-19 |
5.8% |
6.5% |
-0.7 p.p. |
| |
Jun-19 |
Dec-19 |
Change |
| Bankia share |
|
|
|
| Number of shareholders |
173,082 |
173,949 |
(0.5%) |
| Number of shares in issue (million) |
3,070 |
3,070 |
0.0% |
| Closing price (end of period, €) (5) |
0,95 |
1,90 |
(50.1%) |
| Market capitalisation (€ million) |
2,911 |
5,840 |
(50.1%) |
| Earnings per share (€) (6) |
0.09 |
0.18 |
(47.1%) |
| Tangible book value per share (€) (7) |
4.09 |
4.21 |
(3.0%) |
| PER (Last price (5) / Earnings per share(6)) |
10.17x |
10.79x |
(5.7%) |
| PTBV (Last price (5) / Tangible book value per share) |
0.23x |
0.45x |
(48.6%) |
| Additional information |
|
|
|
| Number of branches |
2,267 |
2,275 |
(0.4%) |
| Number of employees |
15,947 |
16,035 |
(0.5%) |
(1) Annualised profit after tax divided by average total assets for the period.
(2) Annualised profit after tax divided by risk weighted assets at period end.
(3) Annualised attributable profit divided by the previous 12 months average equity. In Jun-20 is not deducted any expected dividend payment against 2020 result.
(4) Annualised attributable profit divided by the previous 12 months average tangible equity. In Jun-20 is not deducted any expected dividend payment against 2020 result.
(5) Using the last price as of 30 June 2020 and 31 December 2019.
(6) Annualised attributable profit divided by the number of shares in issue.
(7) Total Equity less intangible assets divided by the number of shares in issue
