|Traded as||BMAD: BKIA|
|Founded||3 December 2010|
|Headquarters||Madrid and Valencia, Spain|
|National and international|
|José Ignacio Goirigolzarri, President|
|Products||Retail banking, corporate banking, investment banking, private banking, asset management, finance and insurance|
|Revenue||€ 3.806 billion (2015)|
|Profit||€ 1.040 billion (2015)|
|Total assets||€ 206.970 billion (2015)|
|Owner||Spanish Government (64%)|
Number of employees
|Slogan||Let's keep working|
Bankia (Spanish pronunciation: [ˈbaŋkja]) is a Spanish banking conglomerate that was formed in December 2010, consolidating the operations of seven regional savings banks. As of 2012, Bankia is the fourth largest bank of Spain with 12 million customers
Bankia reports a total business volume of €486 billion with total assets of €328 billion. Formerly a private bank, it was partially nationalized by the government of Spain in May 2012 due to the near collapse of the institution.
Formation and IPO
Bankia was formed on 3 December 2010 as a result of the union of seven Spanish financial institutions, with major presence in their areas of influence. The merger of the seven savings banks, known as 'cold fusion', took only four months, with the integration contract being signed on 30 July 2010. Caja Madrid, which is itself owned by the government of the Community of Madrid, holds controlling interest. The distribution of shares was as follows:
- 52.06% Caja Madrid
- 37.70% Bancaja
- 2.45% La Caja de Canarias
- 2.33% Caja de Ávila
- 2.11% Caixa Laietana
- 2.01% Caja Segovia
- 1.34% Caja Rioja
After the merger, Bankia was initially owned by a holding company Banco Financiero y de Ahorros (BFA), and the seven banks controlled BFA. The most toxic assets from the banks were transferred to BFA, which obtained 4.5 billion euros from the Spanish government rescue fund FROB in exchange for preference shares with an annual interest rate of 7.75%, maturing in 2015. In 2011 Bankia offered shares to the public in an IPO. Investment bankers found little interest in the IPO among international institutional investors. Strategy shifted to selling the stock domestically with 98% of the initial 3.1 billion euros raised by domestic sales of shares.
Insolvency and state bailout
In 2012, Bankia was the third largest lender in Spain, but the largest holder of real estate assets at 38 billion euros. 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. José Ignacio Goirigolzarri became the new president. 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 EUR of new capital into the troubled bank.
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.
On 25 May, it was reported that Bankia SA had negotiated a further 19 billion euro (US$23.8 billion) bailout, marking another rise in the cost of a drawn-out rescue. The government had already spent 4.5 billion euros to prop up Bankia, and the entire rescue was then seen totalling some 20 billion euros. The New York Times described the increasing bailout as making Spain one of the new focal points of the European sovereign-debt crisis. Bankia also revised its earnings statement for 2011, stating that instead of a profit of 309 million euros, it had in fact lost 4.3 billion euros before taxes and asked for 1.4 billion fiscal credit to reduce its loss.
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 the branch network (39%) and workforce (28%) had to be reduced.
On 7 July 2015, Bankia paid the first dividend in its history, 1,75 cents per share. On 16 October 2015, Bankia completed the sale of City National Bank of Florida for $883 million to Banco de Crédito e Inversiones (BCI).
The new bank has its registered office and address of the subsidiaries in Valencia, while its operational headquarters are in Madrid. It is also present in the following countries: Germany, Austria, China, France, Ireland, Italy, Poland, Portugal, the UK and the US.
- Markets Punish Bankia After Nationalization | LoanSafe
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- "Spain's Bankia Seeking $19B in Government Aid". Fox Business. Reuters. 25 May 2012. Retrieved 25 May 2012.
- Minder, Raphael (25 May 2012). "Spanish Lender Seeks 19 Billion Euros; Ratings Cut on 5 Banks". The New York Times. Retrieved 25 May 2012.
- M. Jiménez (26 May 2012). "Las pérdidas antes de impuestos de Bankia son de 4.300 millones". El País (in Spanish). Retrieved 26 May 2012.
- S.A., Bankia. "Strategic Plan 2012-2015 - Strategic plan - Who we are - Bankia". Bankia. Retrieved 2016-02-01.
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