Spanish savings bank Caja de Ahorros del Mediterraneo (CAM) said on Monday it posted losses of 1.14 billion euros ($1.61 billion) in the first half to June, without providing comparative figures. In the first quarter to March, CAM reported a profit of nearly 40 million euros.
The Bank of Spain took over the troubled savings bank in July, arranging for the state-backed bank restructuring fund FROB to provide 5.8 billion euros in funding and prepare CAM for its sale to another institution.
CAM's new owner could be revealed in October after the completion of an auction process now underway, a source close to the matter said on Monday. Spain's two biggest retail banks Santander and BBVA have been cited as possible CAM buyers.
The savings bank is based in the eastern region of Alicante, which is known for scores of unsold holiday developments around coastal resorts such as Benidorm and was hit by the collapse of Spain's property market and financial crisis.
CAM said it earmarked 112 million euros for provisions in the first half to June, while losses generated by the depreciation of financial assets stood at 1.147 billion euros.
Bad loans as a percentage of total lending rose to 19 percent at the end of June, compared with 6.42 percent for the Spanish banking sector, and up from 9.1 percent at the end of 2010, the bank said in a statement to stock market regulator CNMV.
CAM was one of five Spanish banks that failed the July European Banking Authority stress test.
