CAM have posted huge losses of 1.14 billion Euros for the first half of 2011. A new owner is likely to be announced in October after the Bank of Spain had to step in to save the bank in July.

Spanish savings bank Caja de Ahorros del Mediterraneo (CAM) said on Monday it posted losses of 1.14 billion euros in the first half of 2011 to June.

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.

CAM savings bank is based in the eastern region of Alicante, known for having thousands of unsold holiday homes around coastal resorts such as Benidorm and Torrevieja and was hit by the collapse of Spain's property market and financial crisis.