Spanish lender Bankia recorded signs of recovery after it requested for a bailout that forced Spain to seek over $40 million euros from its European partners in 2012 to assist its troubled financial sector.

The bank said that its saw an increase in its bank deposits and a decrease in its non-performing loans and costs, forecasting positive return to profit this year.

Bankia reported the recovery signs and positive forecasts despite its largest corporate loss of 19.2 billion euros resulting from big writedowns on bad property assets.

As a result of economic downturn and government deficit, the lender asked for a state rescue after it left thousands of ordinary Spaniards investing in IPO out of pocket.

In a released statement during a news conference, bank's chief executive Jose Ignacio Goirigolzarri predicts the bank to recover the money owed to the government by the end of 2014 or 2015.