AFP - Shares in Spain's Bankia, taken over by the state because of its troubled loans, plunged Thursday after a newspaper said that clients had withdrawn more than one billion euros ($1.27 billion) in the past week.
Shares in the bank, created in 2010 from a merger of seven savings banks, dropped by 27.49 percent to 1.2 euros in early afternoon trading, less than one-third of their value of 3.75 euros when the shares were listed on July 20, 2011.
The daily newspaper El Mundo reported Thursday that Bankia managers told the board that in the past week, the bank had lost a "similar amount" of deposits as the 1.16 billion euros ($1.5 billion) withdrawn by clients in the first quarter of the year.
The newspaper said the new numbers were presented during a Bankia board meeting on Wednesday.
The bank had 112 billion euros in deposits from clients at the end of the first quarter.
Bankia had the sector's largest exposure to the property market at 37.5 billion euros at the end of 2011, of which 31.8 billion euros were classed as problematic.
Spain announced on May 9 that it would take a controlling 45-percent stake in Bankia by nationalising its parent group Banco Financiero de Ahorros (BFA).
Last week, Bankia said it would set aside 4.7 billion euros -- by far the highest amount among Spanish banks -- to cover potential losses in case loans to the property sector went bad, in line with a government reform plan.
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