Large banking franchise in Spain, with more than 11% market share. Sufficient capital buffer to absorb the effects of the current economic shock. High share of low-risk mortgage lending. Balanced funding structure. Heightened pressure on already weak profitability, given limited earnings--constrained by high weight of lower-yielding mortgage loans--amid the COVID-19-related economic shock. More limited business and geographical diversification than some of its closest peers. Higher than peers' stock of problematic assets at the onset of the current crisis, despite a substantial transfer to Spain's bad bank SAREB in 2012. The stable outlook on Bankia reflects our expectation that there will be a sharp economic contraction in 2020 associated with the COVID-19 pandemic, and only a partial rebound in 2021. Although
