Bankia posts 6% increase in mutual funds AUM
Spanish bank Bankia has seen assets under management (AUM) in mutual funds increase by 6% to €13.32bn in the first nine months of the year.
This represents a 6% increase over the same time a year ago, according to the company’s latest earnings release.
In mutual funds the group’s market share has increased to 5.60% in September 2016, 16 basis points more than in December 2015.
This “success” in attracting customer funds has been boosted by the implementation, in the first quarter of the year, of the group’s new commercial strategy aimed at intensifying customers’ loyalty to Bankia.
“In this loyalty-building process, the Bankia group is proving to be especially active when it comes to providing digital solutions with high added value for its customers, which has consequently boosted the business volume under management,” the bank said.
Bankia achieved a net attributable profit of €731m in the first nine months of the year, 14.5% less than in the same period of 2015. The decline is due to the effect of the deconsolidation of City National Bank of Florida (CNB), which was sold in October last year; the depreciation of the SAREB bonds; the fall in interest rates, especially the one-year Euribor, which has been in negative territory since March this year; and the decision taken one year ago to eliminate mortgage floor clauses.
Without the effect of the sale of CNB, profit would have been down 9.9%.
On a quarterly basis, however, attributable profit moved upward, from €237m in the first quarter to €245m in the second and €250m in the third, which represents growth of 2.2% quarter-on-quarter.
Bankia’s CEO José Sevilla said that the bank “continues to demonstrate its ability to improve the quality of its balance sheet. Each quarter, we have succeeded in reducing the balance of non-earning assets, maintained our coverage levels and increased our solvency.”