Spanish lender Banco Popular today revealed first quarter losses of €137m and was forced to up provisions against its €37bn pile of toxic property assets.
Banco Popular has the largest slice of non-performing loans in Spanish banking sector. And today the lender provisioned a further €500m against them.
The results are the first under the stewardship of chairman Emilio Saracho. The bank has undergone three leadership changes in since July.
Last year Banco Popular banked €2.5bn in a capital raise. Saracho said he is considering either going back to shareholders to ask for more, or prepared to consider a merger deal.
Net interest income flopped over nine per cent in the first three months of 2017 falling to €500m. This was three per cent lower than the final quarter of 2016, when it unveiled a €3.5bn annual loss.
The bank's fully-loaded capital ratio was 7.33 per cent at the end of March compared with 8.17 per cent at the end of December – it is still above regulatory requirements. Analysts told Reuters the fall indicated the bank needed to raise more money.