Jump Main Menu. Go directly to the main content

  1. A new stage
  2. Share performance, dividend and repayment of aid

Share performance, dividend and repayment of aid

Start of main content

POLITICAL AND ECONOMIC UNCERTAINTIES MARKED THE BEARISH BEHAVIOUR OF THE MARKETS IN 2018.

The markets in 2018 experienced a bearish trend, under the influence of factors including US protectionism, the uncertainty of Brexit, the growth of populist movements, the announcement of the German chancellor’s intention to step down and the delay in interest rate rises. In this adverse environment, the Ibex-35 fell 15% and the Euro Stoxx fell 14%.

The financial sector performed even worse, with the European financial sector index, Euro Stoxx Banks, down 33% at year-end.

The increase in volatility in the market affected stock prices in particular

In the case of the Spanish market, the slowdown in the economy and the highly competitive environment prompted concern as to the sustainability of bank profitability. The result was an increase in volatility in the market, which affected prices especially in the last quarter of the year. Against this background, the Bankia share dropped 35.8%. Average daily trading volume was 7.7 million securities, with an average value of 26.9 million euros per session.

Number of shares in issue 3,084,962,950
Average daily trading volume (number of shares) 7,729,467
Average daily trading volume (euros) 26,872,023
Share price – high (euros) 4.389
Share price – low (euros) 2.485
Quoted price at year-end 31.12.18 (euros) 2.56
Market capitalisation at year-end 31.12.18 (euros) 7,897,50

*Data at 31 December 2018

At year-end, a total of 33 analyst firms actively covered and provided a target price for the Bankia share (the average price was 3.38 euros at that time). 21.2% of the recommendations were buy, 33.3% sell and 45.5% hold.

Information on the analysts’ consensus, with a breakdown by firm, target price, recommendation and analyst, is available in the section about the share in the equity analysts subsection of the corporate portal.

During 2018, more than 350 reports with references to Bankia were published, the target price per firm of analysts was updated more than 120 times and the recommendations were modified on more than 15 occasions.

TREND IN RECOMMENDATIONS, TARGET PRICE AND CLOSING PRICE

RATINGS

During 2018 the rating agencies took the strong economic recovery and recent years’ progress in reducing the fiscal deficit into account, together with the structural improvements in the Spanish economy, which have strengthened the outlook for sustainable growth.

These favourable expectations were reflected in an upgrade in Spain’s sovereign rating by S&P, Fitch Ratings and DBRS. All three lifted their rating of Spain by one notch.

Bankia’s investment grade ratings were confirmed in the context of a year marked by the merger with BMN, rapid progress in realising cost synergies and the improvement in balance sheet quality due to the rapid pace of reduction of non-performing assets. The decisions of the main agencies were as follows:

  • S&P: On 6 April, S&P upgraded Bankia’s long-term rating from BBB- to BBB, assigning a stable outlook. This rating action reflected an improvement in S&P’s assessment of the “economic and industry environment for banks” operating in the Spanish market, after the upgrade in Spain’s rating. The agency expects Bankia’s capital to continue to improve through organic capital generation and the issue of hybrid instruments and its non-performing assets to continue to decline over the next two years, while recurring profitability improves after the merger with BMN. On the same date, S&P upgraded Bankia’s short-term rating from A-3 to A-2.

    On 27 March, after the improvement in Spain’s rating, S&P upgraded the rating of Bankia’s mortgage covered bonds from A+ to AA-, maintaining the positive outlook. For S&P, the outlook on Spanish mortgage covered bonds reflects the outlook on the Spanish sovereign rating.

    After year-end, on 6 February 2019, S&P affirmed Bankia’s long-term rating at BBB, with a Stable outlook, and the short-term rating at A-3.
     
  • Fitch: On 6 February, Fitch improved Bankia’s outlook from stable to positive, maintaining the rating at BBB-. According to the agency, Bankia’s ratings reflect a strengthened domestic franchise after the merger with BMN, strong post-merger capital levels, adequate liquidity and funding sources, and a management team experienced in business combinations. On the same date, Fitch affirmed Bankia’s short-term rating at F3 and the subordinated debt rating at BB+. On 23 March, after a complete industry-level review of the programmes it rates in Spain, Fitch affirmed the rating of Bankia’s covered bonds at A and maintained the positive outlook.

    After the year-end, on 30 January 2019, Fitch raised Bankia’s long-term rating from BBB- to BBB, with a Stable outlook. It also raised the rating of the subordinated debt from BB+ to BBB- and affirmed Bankia’s short-term rating at F3. On 5 February, as a follow-up to the 30 January rating action, Fitch raised the rating of the mortgage covered bonds from A to A+, with a Stable outlook.
     
  • DBRS: On 4 July, DBRS affirmed Bankia’s long-term rating at BBB (high) and the short-term rating at R-1 (low), maintaining the stable outlook, after its annual review of Bankia’s credit profile. On 21 September, it also affirmed the AAA rating on Bankia’s mortgage covered bonds.
  • Scope: Scope has maintained the same ratings, all with a stable outlook, since 30 November 2017: an issuer rating of BBB+, an unsecured senior debt rating (non-MREL) of BBB+, an unsecured senior debt rating (MREL) of BBB and a short-term debt rating of S-2. Scope also affirmed the rating of Bankia’s covered bonds at AAA, with a stable outlook.

Taking the above into account, Bankia has four long-term investment grade ratings.

In October 2013, Bankia decided to end its contractual relationship with the rating agency Moody’s. The ratings this agency continues to publish for Bankia are therefore “Unsolicited” and “Non-participating”. Bankia does not participate in Moody’s rating reviews, which are based strictly on publicly available information about the bank. Bankia has repeatedly asked Moody’s to stop publishing ratings of the bank.

BANKIA RATINGS PERFORMANCE IN 2018
  S&P Global Fitch Ratings DBRS Scope
Dec. 17 Dec. 18 Dec. 17 Dec. 18 Dec. 17 Dec. 18 Dec. 17 Dec. 18
ISSUER RATINGS
Long term BBB-
BBB
BBB- BBB- BBB (high) BBB (high) BBB+ BBB+
Outlook Positive Stable Stable
Positive
Stable Stable Stable Stable
Viability Rating bbb-
bbb
bbb- bbb- --- --- --- ---
Short term A-3
A-2
F3 F3 R-1 (low) R-1 (low) S-2 S-2
MORTGAGE COVERED BOND RATINGS
Long term A+
AA-
A A AAA AAA AAA AAA
Outlook Positive Positive Stable
Positive
--- --- Stable Stable

DIVIDEND

The 2018 General Meeting approved the payment of a cash dividend of 11.024 euro cents (gross) per share out of profits for 2017, equivalent to 2.756 cents per share prior to the 1x4 reverse split carried out in June 2017.

The dividend was paid in cash on 20 April to the holders of shares that carried dividend rights on the payment date. The total amount paid, after deducting treasury shares, which are not entitled to dividend payments, was 340 million euros.

This is 7% more than the amount paid out of profits for 2016 and gives a payout ratio of 41.7% of the Bankia Group’s recurring attributable profit for 2017. Calculated using the actual attributable profit, including the costs of the BMN merger, the payout ratio is 67%.

The bank has thus maintained its dividend per share compared to the previous year, although the total amount paid has increased, owing to the increase in number of shares after the capital increase carried out in January 2018 to finance the BMN merger.

One of the items on the agenda for the General Meeting of Shareholders to be held on 22 March 2019 is a proposal to pay dividends of 357 million euros out of profits for 2018, which is 5% more than was paid the previous year, representing 11.576 cents per share.

This is the fifth dividend in Bankia’s history and brings the cumulative amount of dividends paid to shareholders to 1,517 million euros. Of that total, 961 million are dividends paid to BFA, owned by the FROB, marking further progress in the repayment of state aid.

DIVIDEND 2018
PAYMENT DATE Ex DIVIDEND DATE GROSS AMOUNT (€) NET AMOUNT (€) RATE CONCEPT
20/04/2018 18/04/2018 0.11024 0.0892944 Ordinary Results 2017

PROGRESS IN THE REPAYMENT OF AID

Bankia has paid back 3,083 million euros of the state aid it received. Of that amount, 2,122 million euros relate to two capital raisings, in February 2014 and December 2017. The remaining 961 million have been repaid in the form of dividends out of the profits for financial years 2014, 2015, 2016, 2017 and 2018*.

As regards the repayment of investments made in the Bankia IPO, in February 2016 the bank set up a voluntary system for returning the money to the 255,623 retail investors who purchased shares in the July 2011 IPO. A total of 1,871 million euros have been returned to investors (compensation, interest and costs).

Meanwhile, Bankia considers the fast-track procedure for requests for refunds of excess amounts paid by customers under floor clauses in their mortgage loans to have come to a conclusion. Since January 2017 the bank has refunded 248 million euros to 49.569 consumers.

* The dividend for 2018 is expected to be paid in April 2019.

PROCESS OF REPAYMENT OF AID

BROWSING SUGGESTIONS

Use the browsing suggestions to explore the Annual Report

ANOTHER SUGGESTION

Click to see related content

HIGHLIGHTS 2018

Goirigolzarri presidente Bankia

Bankia posts attributable profit of 703 million euros in 2018, up 39.2% year-on-year

Read more

Bankia increases the shareholders dividend by 5% to 357 million and shortens the debt repayment period

Read more

End of main content