Kutxabank Deposits €1.5 Billion in Assets in Its Bad Bank

2/04/2014 – Expansion

Kutxabank, composed of the Basque banks: BBK, Kutxa and Vital, has reorganized its real estate balance sheets and transferred the most troublesome assets to Neinor Barria, its high-risk asset manager. The property is worth more than €1.4 billion. If the €77.5 million contributed last year added, the total sum would exceed €1.5 billion. (…).

According to annual report of Kutxabank, net book value of Neinor Barria –deterioration and fees excluded– showed €853.7 million at the end of 2013.

The bank valued the toxic real estate at around €2 billion. Most of the assets were imported together with merger with Kutxa. Estate reorganization involved several absorption, purchase and liquidation operations. Thus, Neinor Barria took-over Inverlur, Viuc, Neinor Inversiones and SGA Cajasur and bought Silene Activos Inmobiliarios. The transactions allowed capital enlargement by €531 million and by €45 million.

In total, the bad bank of Kutxabank disposes of about 50 developers. (…).

In 2013, Kutxabank registered net gains of €108.3 million, that was by 28.1% more than in 2012 (additional reserves of €470 million deducted). (…).

Also, last year the bank shutdown 145 offices, reducing their number to 1.066 establishments. This way, Kutxabank (set up in 2012 with 1.281 branches) closed 360 offices in two years, a great part (184 units) of them within its expansion area down to 625 offices. In Euskadi, the bank has got 436 branches, by 36 less than a year before, and additionally 5 establishments in France.



Original article: Expansión (M. Á. Fuentes)

Translation: AURA REE