Goirigolzarri: “We are very satisfied because they show our capacity to withstand a very severe hypothetical deterioration in the economy”

• The phase-in CET1 ratio would reach 10.64% in 2018 in the worst-case scenario
• Between 2013 and 2015, the BFA-Bankia Group has generated 6,755 million euros of capital organically
• 'Today the shareholders and taxpayers can be confident of the Bank's soundness, which is the basis for further progress in repaying the state aid'

According to the results of the stress tests carried out by the European Banking Authority (EBA), in collaboration with the Banco de España, the European Central Bank, the European Commission and the European Systemic Risk Board (ESRB), the BFA-Bankia Group would maintain a phase-in CET1 ratio of 10.6% in 2018 even in a very adverse economic scenario.

The BFA-Bankia Group started with a regulatory capital level (CET1, phase-in) of 14.57% at year-end 2015. Under the requirements that will apply in 2019, i.e., on what is known as a fully loaded basis, the starting CET1 ratio is 13.74% (including the gains in the sovereign debt portfolios, which is the criterion set by the EBA).

In the EBA's baseline scenario, in 2018 the BFA-Bankia Group would have a phase-in CET1 ratio of 15.09% and a fully loaded ratio of 14.42%. In the most adverse scenario, the ratios would be 10.64% phase-in and 9.58% fully loaded.

The chairman of BFA and Bankia, José Ignacio Goirigolzarri, emphasised that 'we are very satisfied with the results obtained in these stress tests because they demonstrate the Bank's capacity to maintain high levels of capital adequacy even in a hypothetical scenario of a very severe deterioration in the economy'.

'These results are possible thanks to the BFA-Bankia Group's strong capital generation over the last three years. The profits we have made and the run-off of non-strategic assets have allowed us to double our capital strength between 2013 and 2015.' In terms of CET1 capital on a fully loaded basis, the capital generated in these three years has reached a total of 6,755 million euros, not including the unrealised gains in the sovereign debt portfolios.

'Today, the shareholders of Bankia and BFA and, most importantly, the taxpayers can be confident of the Bank's soundness, which is the basis for further progress in the repayment of state aid'.