MADRID, Feb 3 (Reuters) - Spain’s Banco Popular on Friday posted a larger-than-expected 3.5 billion euros ($3.76 billion) loss due to extraordinary provisions and one-off charges to clean its balance sheet of toxic real estate assets.
The country’s sixth biggest lender, regarded as the weak link of Spain’s banking sector due to its high exposure to troubled property assets, is in process of replacing Chairman Angel Ron with Emilio Saracho. Shareholders rebelled last November as a result of his failure to clean the bank’s books.
Popular had said in May its clean-up exercise could lead to losses of around 2 billion euros in 2016 and analysts had expected a loss of 2.4 billion euros due to additional charges of 229 million euros related to mis-sold mortgages and 375 million euros in restructuring costs related to layoffs in Spain. ($1 = 0.9301 euros) (Reporting By Jesús Aguado; editing by Sarah White)