Banco Popular shares slip 9% after posting hefty loss
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Ouch.
Banco Popular has slumped to the bottom of Europe’s main banking index this morning after it posted a €3.5bn annual loss that is almost equal to its entire market capitalisation of €4.1bn.
Shares fell as much as 8.7 per cent at the start of Friday trading to €0.86 after the Spanish lender said a key measure of financial strength – its common equity tier one ratio – had also tumbled from 13.7 per cent to 8.2 per cent last year.
Analysts are now speculating over whether Popular will have to raise fresh capital after the lender’s shares have fallen more than 57 per cent in the last 12 months.
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