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Overwiew

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"2019 has been the best year since bankia was created, thanks to our customers’ trust and the efforts made by our professionals "

For the banking sector, 2019 was a year in which interest rates remained stubbornly stuck in negative territory, confirming that this is the ‘new normal’. This situation, which has been going on for four years now, has a direct effect on banks’ revenue streams. To cope with this complex environment, we at Bankia have important strengths, including our branch sales momentum and the solvency of our balance sheet.

2019 was a great year for sales, the best since Bankia was created. Two factors made that possible: first, the continued trust of our customers and, second, the efforts of Bankia’s professionals, who have driven customer satisfaction to new highs.

This sales momentum is reflected in our ability to grow in the more profitable, high-value products. We have become market leaders in investment fund sales and have significantly increased our market shares in business banking and consumer finance.

To me it seems particularly important to highlight these factors because I believe they demonstrate our focus on adding value to our customers.

José Ignacio Goirigolzarri
Chairman of Bankia

In the year just ended, after stabilising recurring revenue and reducing costs more than initially projected, we achieved a profit of 541 million euros.

As a result, our core earnings grew 3.5%. However, our profit has been affected by lower trading income and the decision to reduce non-performing assets by more than planned, which meant having to increase provisions.

In spite of this complex environment, our ability to generate capital organically allowed us to further strengthen our capital ratio, which ended the year above 13%, well above the regulatory minimum, prompting us to recommend that the dividend be maintained at 355 million euros.

OUR GOAL AT BANKIA IS TO OFFER OUR CUSTOMERS THE BEST FINANCIAL PRODUCTS AND SERVICES AND TO DO SO IN A SUSTAINABLE MANNER.

Over the last few years, we have taken on board all the main international commitments on social and environmental sustainability. Bankia remains firmly committed to the Ten Principles of the United Nations Global Compact, which it adopted in 2013. Moreover, with the approval of the 2030 Agenda in 2015 and our signing of the United Nations Principles for Responsible Banking, we are working to identify potential risks and new opportunities to actively contribute to the achievement of the Sustainable Development Goals.

 

These are commitments which I am sure are shared by our customers, our shareholders and the entire Bankia team.

We are convinced that this strategy points the way for us to continue to serve our customers, generate value for our shareholders and help to create a more innovative, sustainable and inclusive society with higher levels of well-being.


JOSÉ IGNACIO GOIRIGOLZARRI

CHAIRMAN OF BANKIA

Milestones

January

Bankia modifies its organisational structure to support the bank’s transformation, creating four new deputy general directorates (Finance, Credit Risk, People and Culture, and Digital Transformation and Strategy) and increasing the number of members of its Management Committee from eight to twelve.

February

Bankia’s Board of Directors elects Eva Castillo Sanz as lead independent director to take the place of Joaquín Ayuso García.

March

The General Meeting of Shareholders approves a proposal to increase the dividend by 5% to 357 million euros, which entails a payment of 11.576 euro cents per share.

April

Bankia completes the sale of 51% of Caja Granada Vida and Cajamurcia Vida to Mapfre for 110.3 million euros, thus bringing the reorganisation of the bancassurance business in the wake of the BMN merger to a conclusion.

May

Scope Ratings has ratified Bankia’s issuer rating at ‘BBB’ with a stable outlook and S&P has ratified Bankia’s long-term rating at ‘BBB’ with a stable outlook.

June

Bankia completes the sale of 500 million euros of five-year senior non-preferred bonds.

July

Bankia and the EIB launch a pioneering 300 million euro ‘green mortgage’ facility.

August

Bankia announces the creation of the Sustainable Business and Financing Directorate.

September

Bankia joins the Dow Jones European Sustainability Index as one of the world’s most sustainable companies and, together with 130 other banks from around the world, launches the UN’s Principles for Responsible Banking.

October

Bankia announces the creation of a fund to invest 20 million euros over five years in projects carried out by financial startups.

November

Bankia issues 750 million euros of seven-year senior non-preferred bonds, which were 2.5 times oversubscribed.

December

Bankia steps up its commitment to the internationalisation of Spanish companies by opening a representative office in Casablanca (Morocco).

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