Spain’s state-owned lender Bankia has reported a loss of €235m in the fourth quarter of 2017 due to one-off BMN integration cost of €312m.
Bankia, the fourth largest bank of Spain with total assets of approximately €190.2bn, agreed to acquire BMN last year.
Excluding the restructuring cost, Bankia’s net profit rose 5.5% year-on-year to €77m in the October-December quarter.
Including BMN, the bank’s net interest income stood at €501m for the ended 31 December 2017, down 3.1% compared to the year ago period.
BMN integration pushed Bankia’s bad loans portfolio by €1.9bn, while non-performing loan (NPL) ratio grew to 8.9% from 8.8% three months back.
Upon completion of acquisition of BMN in December, Bankia said it completed the year with a core Tier-1 fully loaded capital of 12.33%.
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