August 31, 2012 / 4:43 PM / 6 years ago

Spain's Bankia reports 4 billion euro loss, to receive immediate aid

MADRID (Reuters) - Spain’s national bank rescue fund said on Friday it will inject emergency liquidity into troubled lender Bankia (BKIA.MC) immediately after the bank reported losses of over 4 billion euros ($5 billion) in the first half of 2012.

The logo of the Bankia bank is seen on a wall in Madrid May 25, 2012. REUTERS/Andrea Comas

Bankia, nationalised by the Spanish government in May, lost 4.448 billion euros in the six months to end-June after provisioning 2.7 billion euros in the second quarter against bad debt and assets.

Spain negotiated a 100 billion euro bailout for its ailing banking sector in June, but Bankia had not received aid before reporting results.

Bankia said private sector deposits fell by 12.8 billion euros to 109 billion euros in the first six months of 2012. Holding company BFA reported a net loss of 2.8 billion euros.

Spain’s Fund for Orderly Bank Restructuring (FROB) said it would inject capital into Bankia immediately as an advance on European aid for the bank, but did not specificy how much capital would be given to Bankia.

“We don’t know how much the amount is going to be, or when it will come, that’s up to the FROB, Bankia asked for it three months ago,” a banking sector source said.

($1 = 0.7933 euros)

Reporting by Fiona Ortiz and Feliciano Tisera, Writing by Clare Kane

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