The merger between CaixaBank and Bankia (heirs to the former savings banks Cajamadrid and La Caixa, respectively) will give rise to the largest bank in the Spanish market, both in terms of asset volume and the branch network, but it will undoubtedly require very significant cost reductions. The closing of offices and early retirements, as well as the reviews of credit risk and the relationships with their servicers, will have a direct impact on the real estate market.
The resulting entity will have a portfolio of close to 6,300 branches: specifically, 4,012 from CaixaBank and 2,267 from Bankia. A report by Exane BNP Paribas indicates that 50% of Bankia’s branches could be closed and the central services could be substantially reduced.
Read the full article in Spanish.