this absorption bankia with CaixaBank Begins to give good news to the state. Great commitment by the government to increase the percentage of aid that can be made recover from 24,069 million euros injected Expropriated by the Directors of José Luis Rodríguez Zapatero and Mariano Rajoy, the group is projected to generate profits of more than €1,000 million (1.362 million to September) to the public sector this year through the Regular Bank Restructuring Fund (FROB). After causing a loss of 3,556 million in 2020 and 1,483 million in 2021, as confirmed by this newspaper.
That, yes, is accounting profit. they do not lower the state bank bailout, or open and Public debt. Thus, many of these effects were reflected in the State’s accounts when it disbursed the necessary funds to bail out institutions that went bankrupt in 2012. However, accounting regulations require the amount considered “recoverable” from the public investment each year in FROB accounts. at the bank. This amount, which continued to decline in the years prior to the merger, was further reduced by the operation in question, as the State moved from having a majority position and control in Bankia (61.83% of capital) to the second largest position. Shareholder and minority (16.11 %) in CaixaBank. But now it’s increasing thanks to good stock market performance Catalan bank.
Controlling both BFA (Bankia’s parent company) and its subsidiary (Bankia itself), FROB calculated its stake in both not at hypothetical market value, but rather at the net worth of the entire group minus minority stakes (basically, The portion of Bankia’s net worth corresponding to its other non-state shareholders). The bank’s recent merger with CaixaBank in 2020 forced the BFA group to reclassify its stake in Bankia since then. recalculate the value of assets downwards which would cross. This caused the banking group’s net worth to drop from 9,530 to 5,974 million euros, resulting in the aforementioned losses for 3,556 million FROB.
New accounting criteria
In 2021 accounts, further impairment of this “recoverable value”. Since the BFA stopped forming a group with the defunct Bankia, FROB had to begin valuing its stock based on the BFA’s individual net worth (adjusted for easier-to-apply hidden capital gains, if any). Thus, BFA’s net worth rose from 4,029 million last year to 4,491 million in 2020, after a 14% stock market revaluation of its stake in Bankia and the merger of CaixaBank. But despite this increase, it suffered a loss of 1.483 million mentioned above in its FROB 2021 accounts. due to the merger and no hidden capital gains to partially compensate.
In 2022, the situation is completely opposite. CaixaBank is up nearly 45% in the stock market so far this year, with BFA’s individual net worth rising to 4,937 million at the end of September. Added to the Catalan bank’s tactical capital gains of 916 million not reflected in BFA’s equity, this represents a “recoverable value” of 5,853 million, representing a benefit of 1,362 million for FROB compared to 4,491 million last year. this The final figure in their accounts for the year will depend on the bank’s stock market performance in the fourth quarter.up 6% so far.
final invoice
FROB president Paula Conthe pointed out in Congress last week that her organization will most likely close its accounts with profits this year for the first time since its founding in 2009. and in this case it didn’t really reflect the valuation of participation in the BFA nor will we ring the bells that having an accounting profit is a really important change.. “FROB is working every day to maximize the recovery of aid.”
In any case, the senior official argued once again that the CaixaBank-Bankia merger would allow the State to receive more assistance. Since the contacts between the two organizations were announced in September 2020, public engagement has revalued 130% on the exchange, from 1.965 million to 4.550 million. “Without prejudice to the fact that we have to assume that, it’s positive news about how much improvement is possible. it will be very difficult to save the whole“, he admitted. Therefore, the final bill for the bailout will not be known until the State leaves the capital (issued by the end of 2023, but the Government plans to extend the deadline).
At the moment, the public coffers came in at only 346 million euros, which is equivalent to 1.4% of the 24,069 million injected. Bankia returned 3.303 million (added dividends from CaixaBank) but these funds never reached the Government accounts because they served to offset some of the decline in BFA’s assets due to sustained decline from accumulated losses in 2015 due to negative interest rate environment Bankia stock exchange This prevented the group from starting to return the capital injected into the FROB coffers, as stipulated in the agreement reached with the European Commission in 2012.