By Pietro Lombardi
Bankia SA's net profit more than halved last year as the bank set aside more than half a billion euros in extraordinary provisions to weather the effects of the coronavirus pandemic.
The Spanish lender said Thursday that profit fell almost 58% last year to 230 million euros ($278.6 million). It posted coronavirus-related provisions of EUR505 million.
"The purpose of these extraordinary allocations is to further strengthen the bank's balance sheet and give it greater flexibility to meet the future financing needs of households and businesses," it said.
In addition, it posted ordinary provisions of EUR576 million for loans and foreclosed assets.
Gross income declined 4.8% to EUR3.09 billion, with net interest income down 5.9%, while fees and commissions rose 12%.
Last year, Bankia agreed to merge with Spanish peer CaixaBank SA, a move that will create the largest Spanish domestic bank.
Write to Pietro Lombardi at firstname.lastname@example.org; @pietrolombard10