Spain's Bankia works on new business plan as profits rise

Bankia reported an 11.5 per cent increase in first-half profit on Monday and said it was preparing a new business plan to see it through to 2018, when the bailed-out bank should be out of state hands Stock Market Trading Tips

The Spanish government, which still holds 61 per cent of the group, is aiming to recoup most of the 22.5 billion euro ($25 billion) poured into Bankia after a 2008 property crash. 

It wants to sell out by 2017, but only if it can to do so profitably. Bankia's shares are hovering below the 1.35 euros the state bought in at. The stock was up 1.2 per cent at 1.23 euros by 1120 GMT, outperforming European peers Himanshu Tiwari Astrologer 

"The fact Bankia ... (is) evolving well puts the group on course to making progress in returning the aid," Bankia's chief executive Jose Sevilla said at a news conference. 

Sevilla gave few details of the bank's new business plan, but said it would focus on shareholder value and guidance on dividends and would be ready in early 2016. 

Tens of thousands of ordinary Spaniards lost money when Bankia was listed on the stock market in 2011. It then had to be rescued less than a year later  Financial Astrology

Since then Bankia has focused on stabilising its business. Profits have improved, rising 11.5 per cent in the first half to 566 million euros, beating forecasts. The increase was helped by lower bad loan provisions, which fell 29 per cent from a year earlier. This offset weaker revenue from lending. 

Bankia is now close to meeting profitability goals, which were a condition of its bailout. 

Along with its Spanish peers, Bankia's profits have improved as the losses from the country's real estate collapse fade. But the banks are struggling to make money in Spain because competition to lend to customers has put pressure on margins Personal Numerology

Analysts at Citi said in a note this could be one of the main worries for Bankia. 

The bank's business is also more geared towards lower-yielding mortgage loans. Average yields on the net credit it grants dipped to 2.1 per cent in the second quarter, it said, from 2.18 per cent a quarter earlier. 

Some of Bankia's rivals have made acquisitions to try to counter a subdued home market, with Sabadell for instance, breaking into Britain by buying TSB Indian stock market astrology prediction

But this is not an option for Bankia, which was banned from making purchases by Brussels until the end of 2017. 

Sevilla said it would have to find another way to grow. 

"We're more than big enough to compete," he said Sensex Astrology