* FROB to inject money immediately into Bankia, amount
* Bankia reports first-half loss of 4.448 bln euros
* The bank provisioned 2.7 bln euros in second quarter
(Adds chairman quote, analyst, detail)
MADRID, Aug 31 Spain's national bank rescue fund
said on Friday it will inject emergency liquidity into troubled
lender Bankia immediately after the bank reported
losses of over 4 billion euros ($5 billion) in the first half of
Bankia, nationalised by the Spanish government in May, lost
4.448 billion euros in the six months to end-June after
provisioning 2.7 billion euros in the second quarter against bad
debt and assets.
Spain's Fund for Orderly Bank Restructuring (FROB) said it
would inject capital into Bankia immediately as an advance on
European aid negotiated by Spain for its ailing banking sector
in June. It did not specify how much capital would be given to
"I am very satisfied with what the European and Spanish
authorities have said because it means there is big support for
our project," said Bankia Chairman Jose Ignacio Goirigolzarri.
A financial sector analyst in Madrid said Bankia's poor
results were expected and that a capital injection from the FROB
had also been seen as a possibility.
"The results are very bad, the provisions have really ruined
the results, but in operating terms they are more or less what
we were expecting," said the analyst, who asked not to be named.
Bankia, Spain's fourth largest lender after seven different
savings banks were merged into one in 2010, said private sector
deposits fell by 8.3 billion euros to 98.844 billion euros in
the first six months of 2012.
The bank's bad loan rate reached 11 percent at end June,
compared to 7.6 percent at the end of 2011.
Spain negotiated a 100 billion euro European Union rescue
for its wobbly financial sector in June but Bankia had yet to
receive any funds when it reported first half results.
The government also on Friday created a so-called bad bank
to take over tens of billions of euros in defaulted loans and
unsaleable property and to accelerate the clean-up of the
Banks have had to take huge write-downs on toxic property
assets in line with provisions ordered by the Spanish
government, resulting in steep falls in profit even for
relatively sound lenders such as Banco Santander.
Capital outflow in Spain jumped almost 40 percent
year-on-year in June, data showed on Friday. Capital outflow was
56.6 billion euros in June, compared to 41.3 billion euros in
BFA, Bankia's holding company, reported a net loss of 2.8
($1 = 0.7933 euros)
(Reporting by Jesus Aguado, Feliciano Tisera and Rodrigo De
Miguel, Writing by Clare Kane, editing by Fiona Ortiz)