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Factbox: The Caixabank and Bankia merger in numbers

MADRID (Reuters) - Caixabank CABK.MC and state-owned Bankia BKIA.MC on Friday announced the details of a merger to create Spain's biggest domestic bank by assets.

People walk past branches of Bankia and Caixabank during the coronavirus disease (COVID-19) outbreak in Madrid, Spain, September 18, 2020. REUTERS/Juan Medina

Following are some key figures:

FINANCIAL TERMS

- Caixabank offered 0.6845 shares for every share in Bankia, valuing the state-controlled lender at 4.3 billion euros ($5.10 billion) or 1.41 euros per share.

- Caixabank CEO Gonzalo Gortazar told analysts there was no need to raise capital to finance the deal.

- Caixabank said the all-in share deal represents a premium of 20% versus closing prices on Sept. 3 and a premium of 28% over the last three months.

- Bankia’s valuation at Thursday’s market close was 4.4 billion euros.

- Shares in both banks jumped after news of the talks first came, giving them a combined market capitalisation of over 16 billion euros.

THE NEW GROUP

- New lender will leapfrog Santander SAN.MC and BBVA BBVA.MC in Spain, with more than 664 billion euros in total assets, including Caixabank's assets in its Portuguese unit BPI.

- The new group will be named Caixabank while Bankia as a commercial brand will be dropped gradually.

- It will have 51,500 employees in Spain and 6,300 branches, the banks said. Gortazar said talks on how to reduce overlaps will be held with unions once the transaction was closed. [nE8N2CT02Q]

- It will have more than 20 million customers and a 24% market share in deposits; 25% in loans and 29% in long-term savings products.

- It will have a non-performing loan ratios of 4.1%.

- Bankia’s Jose Ignacio Goirigolzarri will serve as executive chairman, but with limited powers.

- Caixabank CEO Gortazar will be chief executive.

- The legal headquarters will be in Valencia, while maintaining operating headquarters in Madrid and Barcelona.

GOALS AND COST SAVINGS

- The banks estimate the new group’s return on tangible equity ratio (ROTE) at more than 8% in 2022.

- They said they expected to achieve a fully loaded core Tier-1 ratio of around 11.3% in the first quarter after the transaction.

- Caixabank and Bankia aim to generate annual recurring cost savings of 770 million euros by 2023 and generate revenue synergies amounting to 290 million euros annually over a period of five years.

- Expected restructuring costs are 2.2 billion euros, which Caixabank intends to fully offset with a bad will, which occurs when an asset is brought below book value.

- Gortazar also said there was no doubt the deal will lead to higher dividends.

SHAREHOLDER STRUCTURE

- Caixabank will hold 74.2% of the new bank, while Bankia will have 25.8%.

- The foundation of La Caixa, through Criteria, the parent company of Caixabank, will own around 30% of the new lender. Before the merger, the foundation had 40% stake in Caixabank.

- Spain, via state bailout-fund FROB, will hold 16.1% in the combined lender, having held 61.8% in Bankia previously.

- Shareholders meetings at Caixabank and Bankia will be held in November to legally approve the deal, which lenders aim to close by the first quarter of 2021.

($1 = 0.8435 euros)

Editing by Ingrid Melander, Jose Elias Rodriguez and Jason Neely

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