The Group Financial Savings Bank (BFA), comprising the merged group of leading banks and Bancaja, Caja Madrid, said Monday he plans to go public to raise capital and comply with solvency levels required by the Government recently.
The bank intends to appeal to the market, going public, to meet core capital levels of government," he said Monday Rodrigo Rato, Chairman of Caja Madrid and BFA.
BFA, with assets of 328,000 million euros and a turnover of 485,900 million, has already initiated the process, after contacting institutional investors interested in entering the capital.
In a press release, the group said on Monday that "in February will begin the process to get Exchange" which will be the third financial institution by assets listed in Spain.
The entity "is set out to contribute this year, once they complete the necessary administrative procedures, and confirmed contacts with institutional investors interested in entering the Group's capital."
The bank previously said it could take the bank's balance sheet real estate assets, said that between provisions and guarantees, has covered 100 per cent of its doubtful exposure to construction and real estate sectors, which have a default rate of 18 percent.
The paperwork to go public provisioning is carried out after 9,200 million euros (6440 million from reserves) in order to clean up its balance sheet and achieve a principal of 7.04 percent.
The new requirements announced by the Socialist government for boxes that can be retrofitted in listed banks are to achieve a principal of at least 8 percent.
With a pro forma profit attributable to 440 million euros, the new bank closed 2010 with a delinquency rate of 6.34 percent.
The total amount of write-downs, 5,900 million for the loan portfolio, 1,800 million to property (both cases in a stress scenario) and another 1,500 million portfolio.
"In this way, the Bank Savings Financial completely healthy and starts 2011 with an extra mattress generic provisions of 1,578 million euros," the bank said.
The consolidation effort by 9,200 million exceeds by more than 2,000 million net of the amount of Frob (4.465 million euros), a difference that was charged to the assets of the group with the aim of making a greater effort required and anticipated the impact of possible adverse scenarios.
The group coded the funding for construction and property development in 41,280 million euros, with a default rate of 18 percent.
The balance of foreclosed assets and acquired in balance totaled 7.402 million, covering over 33 percent.
CAJA MADRID WIN A MINUS 3.7%
The same day, Caja Madrid said that in 2010 net profit of 256 million euros, 3.7 percent less than the same period last, in a context of falling margins and increasing banking reserves .
The agency allocated 1,282 million euros to tackle the deterioration of real estate assets.
The financial group ended with a core capital of 7.1 percent from 6.84 percent in 2009.
The government last week raised from 6 to 8 percent minimum level of core capital and callable capital base of banks and savings banks. Economy Minister, Elena Salgado, also said Wednesday that the ratio for non-listed entities would be between 9 and 10 percent.
Caja Madrid finished 2010 with a delinquency rate of 5.44 percent from 5.43 percent at the end of September.
Madrid entity data out as favorable than last year managed to reduce the balance of dubious close to 500 million, representing a fall of 6.4 percent.
