Bankia ups fund market share in Spain

Spanish bank Bankia has gained a 5.70% share of Spain’s fund market in the first half of 2016.

The market share of mutual funds grew from 5.44% reached at the end of 2015, according to Bankia latest earnings report.

Customer funds held in mutual funds and pension plans increased by €265m to €23bn, despite the difficult market environment, Bankia said.

The products that have performed best over the half-year are mutual funds, demand accounts and savings accounts, increasing 3.8% to €13bn; 6.3% to €17.5bn and 8.5% to €28.7bn, respectively, as they continue to receive the balances that customers have been transferring out of term deposits.

Another focus of the bank’s activity is the digital transformation towards a multi-channel model. At present, more than 35% of the bank’s customers conduct their relations with the bank through both physical and virtual channels, compared to 31% at the end of last year.

Sales of high-value products through digital channels have also grown strongly. In the first six months of the year, compared with the same period of the previous year, digital sales are up 54.6% in the case of consumer loans, 32.8% in the case of pension plans and 26.8% in the case of term deposits.

At the end of last year, Bankia started a new customer service model for customers who no longer go into the branches.

This service, called “Conecta con tu experto”, assigns each customer a personal account manager to handle relations with the bank. At the end of June, the bank had more than 156,000 customers signed up to this service and expected to reach 450,000 in 2017.

In H1, Bankia posted a net profit of €481m  in the first half of 2016, 13.4% less year-on-year. This decline is explained by the deconsolidation of City National Bank of Florida (CNB) following its sale in 2015, the depreciation of the SAREB bonds and the decline in interest rates, the Spanish bank said.

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