Off the wire
• Israel's Teva buys Allergan generic drug unit for USD 40.5 billion  • Feedback report on Nepal's draft constitution submitted  • Backgounder: Key events during Beijing's bid for 2022 Winter Olympics  • Israel holds surprise military drill  • 2015 on track to be windiest year in decades in Scotland  • Roundup: 6 killed in terror attacks in N. India  • Roundup: Singapore stocks end down 1.17 pct  • New cable network to help Guinea join digital world: president  • Spanish forest fire forces evacuation of 100 plus people  • Weather forecast for world cities -- July 27  
You are here: 　 Home

Spanish "bailed-out" Bankia posts higher-than-expected net profit

Xinhua, July 27, 2015 Adjust font size:

Spain's "bailed out" bank Bankia posted a higher-than-expected net profit for the second quarter of 2015, the bank announced on Monday.

Bankia's profits for April to June rose by 27 percent, which is mainly due to lower provisions against losses on loans as Spain's economy begins to recover.

That means gains for the first half of the year rose by 11.5 percent as charges against bad debts fell.

Spain's fourth largest bank, which needed a government bailout in May 2012 and has 60 percent of its shares still under government control, made a profit of 311 million euros (343.86 million U.S. dollars) for the second quarter and 556 million euros for the first six months of 2015.

Meanwhile, the return on equity rose to 9.8 percent in the second quarter after standing at 8.7 percent between January and March and the bank looks as if it will reach its 2015 target of 10 percent.

One cloud on the Bankia horizon is that net interest on income fell from 730 million euros to 695 million euros over the quarter. This is due mainly for the Spanish tendency to take advantage of the more favorable economic circumstances to pay off existing loans rather than look for further credit. (1 euro = 1.11 U.S. dollars) Endit