Bankia set to post record loss for 2012

22 February 2013

Bankia is set to announce the biggest loss in the corporate history of Spain next week as it continues to struggle in the face of the eurozone debt crisis.

The state-owned financier is expected to post an annual net loss of more than €19 billion ($25 billion) when it unveils its results for 2012 next Thursday (28 February), due to the impact of its drastic restructuring plans, the Financial Times reports.

Throughout the 12-month period, Bankia announced the closure of many branches and sold a large proportion of its assets in order to keep its head above water.

And the overall €19 billion loss is set to be attributed primarily to the fact that it made a €12 billion loss in the fourth quarter of the year after it transferred massively-discounted assets to Sareb, the country's bad bank that has been set up to deal with toxic assets.

At present, the Spanish government owns 45 per cent of Bankia, but this figure is set to rise to more than 70 per cent over the coming weeks, the news source noted.

By Gary Cooper

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