January 26, 2018 / 11:30 AM / a year ago

Spain's Bankia to pay back another 207 mln euros in state aid

MADRID, Jan 26 (Reuters) - State-controlled Spanish lender Bankia said on Friday it would pay back 207 million euros ($258 million) in state aid via a gross dividend from 2017 earnings of 0.11 euros per share.

Bankia Shareholders, including the state-run bank bailout fund FROB, will receive 340 million euros in total, with the state getting a portion in line with its 61 percent stake in the lender.

The amount to be disbursed, once cleared by stakeholders, would be 7 percent more than that distributed from 2016 earnings after an increase in outstanding shares issued by the lender when it acquired smaller bank BMN last year.

In per-share terms, the dividend is unchanged from a year earlier.

Including this dividend and several stake sales, Bankia will have paid back a total of 2.86 billion euros in state aid as part of its privatisation process.

Bankia, which was given a 22.4 billion euro bailout in 2012 after losses on property loans at the height of Spain’s financial crisis, is due to report full-year earnings on Monday.

Bankia agreed in June to acquire part BMN to become the country’s fourth-largest lender in an effort to boost earnings while in the midst of a cost-cutting process.

On Thursday, Spain’s largest union (CCOO) said Bankia had proposed 2,291 job cuts following BMN’s integration. That was down from an original layoff plan of 2,510 people announced in December.

Bankia shares were down by 0.1 percent, or 0.005 euros, at 1120 GMT while the Ibex rose 0.22 percent.

$1 = 0.8027 euros Reporting by Jesús Aguado; Editing by Paul Day and Mark Potter

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