Bankia : General Meeting of Shareholders agrees to increase dividend by 5%, to 357 million

• The Spanish State, through the FROB, will receive 219 million euros with its current shareholding, bringing the total amount of aid repaid by Bankia to 3,083 million euros
• The payout ratio is 50%, in line with the target the bank announced in its 2018-2020 Strategic Plan
• In 2018, a year of very low interest rates, the bank improved its business dynamic to boost revenue, accelerated the reduction of non-performing assets and brought forward the capture of synergies from the BMN merger
• Bankia's shareholders also ratified the appointment of Laura González Molero as an independent director

Bankia's General Meeting of Shareholders today approved a dividend of 357 million euros, to be paid out of profit for 2018, which is 5% more than the previous year.

Accordingly, the dividend is set at 11.576 cents per share, which is also 5% more than the previous year. As in the last four years, this ordinary dividend will be paid in cash and in a lump sum and will be settled on 11 April.

This is the fifth dividend in Bankia's history. It brings the cumulative amount paid out since July 2015, when Bankia paid its first dividend, to 1,517 million euros.

Although 2018 was characterised by a low interest rate environment, the bank chaired by José Ignacio Goirigolzarri focused its management efforts on improving the dynamic of the business so as to boost revenue, accelerating the reduction of non-performing assets and capturing synergies in the wake of the merger with BMN.

As a result, Bankia ended 2018 with net attributable profit of 703 million euros and a payout ratio of 50%, in line with the target the bank announced in its 2018-2020 Strategic Plan.

The Fund for Orderly Bank Restructuring (FROB), directly and indirectly through BFA Tenedora de Acciones, currently owns 61.4% of Bankia. When the dividend is paid, it will therefore receive 219 million euros.

Repayment of state aid increases to 3,083 million euros

With the privatisation of 7.5% of Bankia's capital in February 2014, which brought proceeds of 1,304 million, the sale of another 7% in December 2017, brought an additional 818 million euros of revenue for the FROB, and the four dividends paid to date, the State will already have recovered a total of 3,083 million euros.

The shareholders today also approved the bank's financial statements for 2018. Additionally, the General Meeting gave the Board of Directors authority to pay interim dividends during 2019 and ratified the appointment of Laura González Molero as an independent director.

The shareholders also agreed on a share capital reduction of 15.58 million euros through the cancellation of treasury stock.