|Date joined:||7 March, 2019|
|Initiatives:||Principles for Responsible Banking|
“The sustainability of our project is based on a Responsible Management model that aims not only for financial profitability but also social responsibility and respect for the environment. This management model is reinforced by our commitment to these Responsible Banking principles, which entail a continuation of our path towards a fairer economy, capable of transforming the environment and contributing to the United Nations Sustainable Development Goals and the 2030 Agenda”. José Ignacio Goirigolzarri, President of Bankia
Bankia is a Spanish bank that is included in the Ibex 35. It operates throughout Spain, with a universal banking business model based on multi-channel management and specialized in serving individuals and businesses. With 8.1 million customers, Bankia is the market leader in six of Spain’s regions, which together account for 38% of the country’s GDP: Madrid, Valencian Community, Balearic Islands, Region of Murcia, La Rioja and Canary Islands.
At year-end 2018, Bankia had 2,298 branches giving the bank a branch market share of 10,12%.
All Bankia’s areas of work are committed to creating value for the group, a commitment which in 2018 was supported mainly by two factors: the resumption of various business activities once the restrictions of the European Union in exchange for the financial aid were lifted; and the merger with BMN.
These two factors, coupled with new business strategies, digitization, the consolidation of ongoing initiatives, balance sheet clean-up and compliance with the regulators’ requirements, among other things, were the drivers of value creation during 2018.
The range of business activities carried out during the previous five years was extended in 2018 with a return to the financing of real estate developers and companies with access to the capital markets. Value creation is reflected in the whole of the group’s business lines, a model combining full-service banking with specialisation by segment.
The bank presented its new road map for 2018-2020 after having met all the commitments of the previous Strategic Plan and having established itself as Spain’s fourth largest financial institution. The plan is aimed at making Bankia the most profitable, most efficient and most solvent of all the large banks and the one with the most satisfied customers, the most committed teams and the widest social recognition.
The lines of action now under way build on a solid foundation of corporate governance, oriented towards the principles and values that underpin everything the bank does. The four objectives driving the strategy start from the merger with BMN; efficiency, cost control, revenue growth through increased sales of high value products, and accelerated reduction of non-performing assets.
The general, group-wide frame of reference for Bankia on corporate social responsibility is the Responsible Management Policy, which helps to guide the business, manage risks, identify and exploit opportunities and lay the foundations for stakeholder dialogue, so as to align the bank’s activity with the common goal of ensuring Bankia’s sustainability.
1. Value creation: putting the how before the what.
2. Transparency and good governance: saying what is done and what we do.
3. Ethics and integrity: Ethics and integrity: doing what we say.
4. Respect for human rights.
5. Active listening and dialogue: satisfaction orientation.
6. Clarity, simplicity and understanding: identification with the customer.
7. Recognition and respect: basis of the relationship with the bank’s professionals.
8. Responsible hiring: shared growth.
9. Climate change: global demand.
10. Social commitment: local development and community closeness.
The Responsible Management Policy is approved by the Board of Directors and is reviewed periodically to ensure that it remains aligned with the corporate values and the bank’s strategy, as well as with the expectations, requests and demands of its stakeholders.
Besides, Bankia has implemented a 2019-2020 Responsible Management Plan, this new plan is designed to align Bankia’s sustainability with its strategic objectives and build the capabilities it will need in order to meet the challenges the banking industry is likely to face over the next few years. The plan has three main challenges:
• Prevent risks in relation to social and environmental responsibility and good governance.
• Support management through tighter control over internal processes, so as to foster continuous improvement and meet stakeholders’ expectations.
• Drive leadership, so that Bankia stays at the forefront of its industry in sustainability.
These challenges explain the plan’s five strategic areas, which give rise to fifteen lines of strategy, each with its action opportunities, specific objectives, performance indicators and persons responsible. The new plan revolves around Corporate Governance, underpinned by sound values and a strong culture based on sustainability, risk management and relations with third parties and through the bank’s positioning based on Proximity, Simplicity and Transparency.
Corporate Governance stands at the centre of four broad areas: two that
are crucial to the bank, namely, customer relations and customer satisfaction, on the one hand, and talent development and the commitment of the group’s professionals, on the other.
And two areas that are of strategic importance to the bank and the 2030 Agenda, namely, sustainable development and the transition towards a low-carbon economy, on the one hand, and Bankia’s contribution to society in the regions in which it operates, on the other.
The dashboard is reported quarterly to the Responsible Management Committee and semi-annually to the Appointments and Responsible Management Committee of the Board of Directors, so that decisions can be made and action and improvement plans can be designed on the basis of the results obtained.