25/02/2014- El Pais
At the moment of deciding upon Bankia´s flotation, its parent company, Banco Financiero y de Ahorros (BFA) prefered to keep the most toxic assets in its own balance sheet. Althought the firm transferred vast majority of them to Sareb, the remaining ones that have not met the transfer requirements are now beating defaulting records. (…).
According to BFA´s accounts, it has got €292.7 million in developer credit, out of which €276.7 million (94.6%) belong to non-performing group and €14.9 million (5.1%) to substandard under high risk of defaulting one. Mere €1.06 million makes the performing credit. (…) BFA managed to draw benefits from the 2012 capital gains and allocate 100% of the toxic assets.
The bank has also allocated property portfolio in a fund with hedging reaching 93% in case of land. (…) If it comes to mortgage portfolio, the unpaid credits make €1.25 million that is 25.3% of total portfolio´s €4.94 million. Now, BFA´s overall credit is valued at €84.96 million.
Original article: El País (Miguel Jiménez)
Translation: AURA REE