Recently nationalized Spanish bank BFA-Bankia announced Thursday the sale of its Mexican car-financing subsidiary to CI Banco for 9.7 million euros ($12.1 million), part of its obligation to divest itself of non-core assets.
Finanmadrid, which was founded in 2005 and mainly specializes in providing loans for car purchases, posted 7.3 million euros ($9.1 million) in revenues last year.
The sale of that subsidiary to CI Banco, a Mexican financial institution, still must receive regulatory approval but that is expected to occur in the coming days, BFA-Bankia said in a press release.
BFA-Bankia is one of numerous Spanish banks that were hard hit by the collapse of the country's 1995-2007 real estate boom, which left them saddled with toxic property assets.
The largest of the Iberian nation's ailing financial institutions, it was effectively nationalized in early May and is seeking what would be the largest bank bailout in Spanish history after saying later that month it needs another 19 billion euros ($23.6 billion) to boost loss provisions. EFE