On 16 October, Bankia completed the sale of City National Bank of Florida for $883 million to Chilean bank BCI. The bank was bought by Caja Madrid for $1.12 billion in 2008. At the end of 2015, Bankia had fulfilled two years ahead of schedule all the targets set by the European Commission in the BFA-Bankia Group Restructuring Plan. The bank also reported the best efficiency, solvency and profitability among the six largest Spanish banks. In January 2022, Carlos San Juan de Laorden, a retired urologist from Valencia with Parkinson’s disease started an online petition for more human customer care at bank branches. At a malfunctioning ATM a sign informed customers that they could only be seen with appointments, but no appointments could be made by phone.
Concerns about the value of Bankia’s assets, and the potential for further losses in the future, prompted speculation that the Spanish government would inject up to €10 billion of new capital into the troubled bank. Bankia was created through the merger of seven savings banks (Caja Madrid, Bancaja, La Caja de Canarias, Caja de Ávila, Caixa Laietana, Caja Segovia and Caja Rioja), each a market leader in their respective region of influence. Spain’s CaixaBank SA and Bankia SA have reached an all-share merger agreement to create the country’s third-largest banking group with €664.03 billion in assets.
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Bankia also revised its earnings statement for 2011, stating that instead of a profit of €309 million, it had in fact lost €4.3 billion before taxes, and asked for 1.4 billion fiscal credit to reduce its loss. The New York Times described the increasing bailout as making Spain one of the new focal points of the European sovereign-debt crisis. In response to growing concerns, Standard & Poor’s downgraded its rating of Bankia’s creditworthiness to BB+, making it a junk bond. In 2012, Bankia was the third-largest lender in Spain, but the largest holder of real estate assets at €38 billion. On 7 May 2012, Rodrigo Rato stepped down as chairman of Bankia SA, in order to clear the way for a rescue plan that the Spanish government hoped would persuade international investors of the country’s financial stability.
On 28 February 2014, Spain sold a 7.5% stake in Bankia for €1.3 billion. Further divestment was expected for 2014 under the rescue programme, but did not happen. BFA Tenedora Acciones is a financial institution and is the holding company for Bankia, S.A. The entity was created in 2015 after Banco Financiero y de Ahorros was converted into holding company. The deal, expected to close in the first quarter of 2021, is set to generate annual cost synergies of about €770 million and new annual revenues of roughly €290 million.
As a result of the transaction, the EPS of CaixaBank and Bankia are expected to increase by 28% and about 70%, respectively, compared to market estimates for 2022. In addition to the financial problems, the new management had to deal with controversies related to former managements. A number of limitations were imposed as a result of having received state aid. Shareholders had to share part of the burden of the capital injection, the balance sheet had to be reduced, dividends were restricted until 2014, and both the branch network (-39%) and workforce (-28%) had to be reduced.
- Bankia sold around €5 billion in complex financial products such as preference shares and subordinated debt to customers.
- A number of limitations were imposed as a result of having received state aid.
- The merger would create the biggest domestic bank in Spain with assets of €650 billion.
The most toxic assets from the banks were transferred to BFA, which obtained €4.5 billion from the Spanish government rescue fund FROB in exchange for preference shares with an annual interest rate of 7.75%, maturing in 2015. Investment bankers found primus fx little interest in the IPO among international institutional investors. The strategy shifted to selling the stock domestically, and largely to customers of the bank itself, with 98% of the initial €3.1 billion raised by domestic sales of shares.
On 15 July 2016, the time limit for submissions of applications for arbitration expired. As of 2017, Bankia was the fourth largest bank in Spain with total assets of €179.1 billion. In 2021, the bank merged with CaixaBank to create a new entity but preserving the name of the latter. While the investment objective stated in a fund’s prospectus may or may not reflect how the fund actually invests, the Morningstar category is assigned based on the underlying securities in each portfolio.
Banking Tools
On 27 January 2016, the Spanish Supreme Court ordered Bankia to reimburse two small investors for misleading them during its 2011 IPO. The court said that the prospectus for its public stock offering had contained «serious inaccuracies». The bank is aware of lawsuit claims totalling €819 million and has set aside €1.84 billion in provisions for claims. On 17 February 2016, the bank announced it would fully compensate minority shareholders who participated in the IPO in exchange for returning their shares to the bank. They will receive 100% of their investment plus 1% compensatory interest per annum. On 7 July 2015, Bankia paid the first dividend in its history €0,0176 per share.
If the fund is new and has no portfolio history, we estimate where it will fall before giving it a more permanent category assignment. When necessary, we may change a category assignment williams fractal based on recent changes to the portfolio. On 25 May, it was reported that Bankia SA had negotiated a further state guarantee, marking another rise in the cost of a drawn-out rescue.
Commercial Bank
Morningstar categories help investors and investment professionals make meaningful comparisons between funds. The categories make it easier to build well-diversified portfolios, assess potential risk, and identify top-performing funds. We place funds in a given category based on their portfolio statistics and compositions over the past three years.
The shares of Bankia began trading on the Bolsa de Madrid on 20 July 2011, under the symbol BKIA, and the bank was listed in the IBEX 35. On 27 June 2017, Bankia agreed to acquire state-owned bank BMN for €825 million in an all-stock deal. BMN was the result of the merger of the savings banks Caja Murcia, Caja Granada and Sa Nostra. On 3 November, Bankia announced that it was listed in the CDP umarkets review Climate Change report for 2017 as one of a group of 112 global companies leading the fight against climate change. The deadline for the privatisation of Bankia was end-2019, however, in December 2018 the Government decided to postpone the privatization until end-2021. Bankia sold around €5 billion in complex financial products such as preference shares and subordinated debt to customers.
He gathered more than 600,000 signatures in 2 months, asking banks and other institutions to serve all citizens, and not discriminate the oldest and most vulnerable members. In Spain, the number of bank branches had shrunk to about 20,000 in 10 years since the bailout of 2012, and with the Coronavirus pandemic another 3000 branches closed in less than 2 years pushing online banking. On 10 May, the Spanish government said it would convert its preference shares in BFA into voting shares, giving it a controlling stake of 45% in Bankia. On 25 May, trading in the shares was suspended at Bankia’s request. The joint merger plan will be submitted for approval at the banks’ respective shareholders meetings in November.
To explore BFA Tenedora Acciones‘s full profile, request access. On 4 September 2020, it was confirmed that CaixaBank and Bankia are negotiating for a potential merger. The merger would create the biggest domestic bank in Spain with assets of €650 billion. Grapple with a coronavirus pandemic-driven rise in bad loans on top of negative interest rates, poor economic conditions and weak profitability.
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CreditRiskMonitor is a financial risk analysis and news service for credit, supply chain and financial professionals. Our strength in coverage spans 58,000 global public companies, totaling about $70 trillion in corporate revenue. We also offer solutions that can help ease private company financial risk assessment. Where indicated by «Yes,» CreditRiskMonitor contains this information in its extensive database. To get access to the full report and learn more about CreditRiskMonitor’s robust financial risk analysis and timely news service, request a personalized demo and free trial today. After the merger, Bankia was initially owned by the holding company Banco Financiero y de Ahorros , and the seven banks controlled BFA.
On 23 February 2016, Fitch raised Bankia’s rating to «BBB-«, restoring the bank’s rating to investment grade. On 8 September, Bankia announced that it was included in the Dow Jones Sustainability Index with a score of 84 out of 100. BFA Tenedora de Acciones S.A.U. (formerly Banco Financiero y de Ahorros, S.A.U.) is a financial institution created on December 3, 2010. BFA is the main shareholder of Bankia S.A., with approximately 65.8% of Bankia’s share capital.
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