Spain's Banco de Valencia posts loss of 3.6 billion euro in 2012

MADRID Mon Feb 4, 2013 7:53pm GMT

Related Topics



MADRID (Reuters) - Spain's Banco de Valencia, which was bought by Spain's third-largest lender Caixabank (CABK.MC) last year, reported a loss of 3.6 billion euros ($4.9 billion) for 2012, the bank restructuring fund (FROB) said on Monday.

While Banco de Valencia is still technically held by the FROB, CaixaBank bought the smaller lender for 1 euro with the benefit of a government-funded program to protect it against future losses on assets.

A Caixabank spokesperson said the loss has not been consolidated into the larger bank's results. CaixaBank's profits fell nearly 80 percent in 2012, it said last week.

Banco de Valencia was gutted by the 2008 property market crash after rampant lending to real estate developers, many of which have since gone to the wall. ($1 = 0.7376 euros)

(Reporting By Sarah White; Writing by Paul Day; Editing by Gerald E. McCormick)


After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.