Caja Madrid post profit fall
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Wednesday, 22 Oct 2008
Spain's second-largest unlisted savings bank Caja Madrid on Tuesday posted an 11 percent fall in nine-month net profit to 1.126 billion euros ($1.49 billion).
The savings bank sold its stake in Spanish utility Endesa in the fourth quarter of 2007, leading to a dividend loss of around 200 million euros to September this year.
Other one-off items in the comparable 2007 period included the sale of its 21.5 percent stake in real estate group Realia as part of that company's stock market listing last year, and the restructuring of its joint venture with Spanish insurer Mapfre. Nine-month net profit in 2007 came to 1.266 billion euros.
Net interest income fell 1.6 percent to 1.662 billion euros and the non-performing loan ratio rose to 3.6 percent from 1.9 percent in the first halfof this year, Caja Madrid said.
Caja Madrid had 1 billion euros of outstanding loans from its exposure to
property group Martinsa-Fadesa, which filed for administration in July.
After Martinsa Fadesa, Caja Madrid's NPL stood at 2.77 percent, the bank said.
The saving bank said it had available liquidity of 13 billion euros, and it continued to be a net lender to the banking system of 4 billion euros.
Spain's savings banks, or cajas, have been hit by their higher exposure to the property market slowdown than their commercial bank rivals due to greater
ties to troubled real estate developers and larger mortgage lending.
As the smaller cajas face rising bad debtors there has been speculation of sector-wide consolidation to avoid bank failures, with the larger cajas leading the charge.
'We are not rescuing anyone. It is not in our statutes to take this role,
but without doubt there will be opportunities along the way,' a director from the bank said.
Caja Madrid is continuing with its plans to list its holding group Cibeles in the last quarter, sources at the bank said.
Source: http://www.reuters.com/
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