Published November 28, 2012
MADRID – Spanish bailed out lender Bankia said it aims to return to profitability by next year after a restructuring plan that will cost about 6,000 jobs and see it shed 50 billion euros ($64.65 billion) of assets.
The bank, which is set to receive European aid, said that hybrid debt holders would also contribute up to 4.8 billion euros to its clean-up, through losses on their holdings.
Shareholders will contribute 10.7 billion euros as part of its recapitalization plan.
Bankia will cut its bank branches by 39 percent, and dispose of the 50 billion euros of assets via transfer to Spain's bad bank, the sale of industrial stakes and by cutting lending.
It is aiming for a net profit of 1.2 billion euros in 2015, and will scrap dividend payments until 2014.
(Reporting by Sonya Dowsett; Writing by Sarah White; Editing by Julien Toyer)