CAM Bank post losses of 1 Bln Euros

 

Alicante-based Caja de Ahorros del Mediterráneo (CAM), which was nationalised in July of this year, posted losses of 1.136 billion euros for the first six months of 2011.

The Bank, which was hit particularly hard in the recent economic downturn because of it's exposure to mortgages and the property market, reported a bad-debt ratio of 19%, way above the Banking industry average of 6.416% for June.

CAM was taken over by the Bank of Spain due to their requiring an injection of 2.8 billion euros from FROB and the opening of a 3.0 billion euro line of credit.

BOS now intends to sell off CAM once it becomes viable to do so.

The Bank and four others did not pass the last stress tests, introduced by the EU to assess their ability to weather the current financial situation.