Bankia returns to profit after bailout

25 April 2013

Bankia, the Spanish lender, has announced a return to profit after it recorded massive losses in 2012.

In 2012 the company lost €19.2 billion ($25 billion) but has made €74 million in the first three months of 2013, largely thanks to a bailout, which allowed it to get rid of several bad property loans.

The bank was bailed out by the European Union after becoming one of the biggest casualties of the Spanish financial crisis and is now majority owned by the government.

However, the bank warned the ailing Spanish economy was still a cause for concern.

Bankia's director general Jose Sevilla said at a news conference that 2013 will mark a "return to normality, in an environment that is still not normal".

The bank did not publish results for the first quarter of 2012, when it was in the midst of the bailout.

Spain's financial sector was hit by the collapse of the country's property market in 2009.

By Tony Aynsley

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