Bankia reports profits surge

Madrid - Spain's last big nationalised bank, Bankia, said on Monday its first-half net profit rose by almost half as its losses from bad loans dropped amid a pickup in the economy.

Net profit in the first six months of 2014 hit €431m, compared to €291m a year ago.

In the second quarter of the year, net profit almost doubled to €245m, up from €126m in the same period in 2013.

"These results confirm that the bank is on the right track," said BFA-Bankia Group chairperson Jose Ignacio Goirigolzarri.

"Core banking business revenue has improved, cost reduction efforts are continuing and both the balance of non-performing loans and the non-performing loan ratio have been reduced."

Operating expenses

Bankia's surge in profit comes amid growing signs that Spain, with the eurozone's fourth-biggest economy, is gaining momentum after a property boom burst and floored growth.

Spain's central bank said earlier this month that the economy grew at its strongest rate for six years in the second quarter, expanding by 0.5% from the previous three months.

Bankia said its ratio of non-performing loans - cases in which borrowers have fallen behind or defaulted on payments - to total loans fell to 14.03% in the second quarter of 2014, from 14.65% at the end of December.

First-half results was also helped by an 11% reduction in operating expenses in the first half compared to a year ago.