Spanish bank Bankia has lost 19 billion euros in 2012, according to a today’s announcement. Bankia received last December 18 billion euros in eurozone aid to restructure by closing branches and cutting jobs.
Bankia's chairman Jose Ignacio Goirigolzarri said today at a news conference that despite the huge losses the bank's financial situation was in line with its aims. He also added: "We have a very solvent balance sheet. We are a tremendously solvent and solid entity."
The bank has announced it will close a third of its branches and hopes to return to profit in 2013. However, unions say the restructuring will lead to 4,500 job cuts.
Bankia that was established in 2010, following the merger of seven savings banks, was severely damaged by the seven banks’ loans to property developers and home buyers during the country's real estate bubble that ended in the late 2000s.
In addition, the National Court is now investigating suspected mismanagement of the bank by its former president, ex-ruling Popular Party minister and ex-IMF chief, Rodrigo Rato and 32 other former Bankia board members. However, Rato has not been charged with any crime.(JP)
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