Bankinter increases profits in the first nine months of the year, Portugal contributed 154 million
In the first nine months of the year, Bankinter recorded profits of 731 million euros, 6.8% more than in the same period in 2023, for which it relied on “a strong dynamic in commercial activity and greater business diversification”.
And, despite the largest source of revenue being in Spain, the operation in Portugal continues to have an important weight, according to the statement released this Thursday. The branch in Portugal also recorded greater growth in pre-tax results than Bankinter Spain.
Results in Portugal increased by 13%, compared to the same period in 2023, to 154 million euros. Globally, the group’s pre-tax growth was 7.9% to €1,083 billion compared to the third quarter of 2023.
Credit grows 11% in Portugal
In the operation in Portugal “the credit portfolio grows 11% in annual terms to 10,000 million euros, of which 6,500 million euros refer to commercial banking (+7%) and 3,200 million euros (+22%) to banking. companies”, says the statement.
Bankinter points out that the increase in the group’s business lines in terms of corporate banking saw an “increase of a creditable 22%” in Portugal.
The group’s portfolio reaches 33,000 million euros, which corresponds to a growth of 5% compared to September 2023. In Spain the growth was 4%, compared to a sectoral drop of 2%, according to data from the Bank of August Spain.
Customer resources on and off the balance sheet grew by 25% to 9 billion euros, and for off-balance sheet resources the annual growth was 11%, totaling the same 4 billion euros.
In Spain, products competing with deposits grow 23%
The Bankinter group notes that it recorded “solid growth for the bank in all volumes of its business with customers, in particular resources managed off-balance sheet, which grew 23.3%”, that is, an additional 10,383 million, to 54,903 million euros. Off-balance sheet resources are products such as investment funds and debentures, among others, which provide a more attractive remuneration than term deposits, but do not guarantee the capital invested.
Retail customer resources totaled 81,287 million euros, which represents 3.9% more than a year ago.
The group’s credit portfolio totals 78,359 million euros, 4.7% more than in the same period in 2023.
The mortgage business, highlights the bank, shows signs of stabilization: “New mortgage production in these nine months is the same as in the same period last year, 4,200 million euros, with a market share of 7% in Spain, 6.9 % in Portugal and 8% in Ireland, according to the latest data published by the central banks of these countries”.
The Bankinter group’s residential mortgage portfolio “stands at 36,200 million euros at the end of September, 5% more than on the same date in 2023”.
The bank’s efficiency ratio is 34.6%, “leading in the sector, as well as in its risk profile, by recording a non-performing loan ratio of 2.2%, and profitability, with an ROE (which measures the profitability of capital to remunerate shareholders) of 17.1%”.
The bank led by Gloria Ortiz also says that “the results account items are growing at a good pace, compared to the same period last year: intermediation margin of +5.5%; gross margin of +7.30%; and operating margin of +7.8%”.
It also highlights that it offset “a context of falling interest rates with growth in business volumes, both in the credit portfolio and in customer resources, with special emphasis on those managed off-balance sheet”. “This greater commercial activity brought improvements in all items of the profit and loss account and in all indices”, it is concluded.
“The interest margin reaches 1,728 million euros, which represents 5.5% more than the value recorded a year ago, and this despite the fall in interest rates and a cyclical increase in the cost of resources”, he says the Spanish group.
The gross margin, which encompasses all the group’s revenues, reached 2,151 million euros at the end of the third quarter, 7.3% more than a year ago”, which was supported “by an excellent performance of revenues from commissions, most of which come from services that provide greater value to the client, which add up to a total of R$668 million in commissions received, almost 10% more than a year ago”.
And he states: “among the commissions, those from the asset management business stand out, 239 million euros, with growth of 16%; those of the transactional collections and payments business, R$145 million, plus 7%; or those of the securities business, which encompass management, custody and brokeragewhich grows 10% to R$98 million”.
Finally, “the capital ratio CET1 fully loaded slightly improved over the year to 12.6%, exceeding by 470 basis points the regulatory minimum required by the ECB from Bankinter, which is 7.86%, the lowest among listed banks in Spain”.
Given the deal, “the bank’s main source of revenue remains in Spain, including EVO Banco”.
And, summarizing the big numbers, the statement reads that, in relation to data up to September 30, 2024, “the credit portfolio in Spain stands at 65,000 million euros, with a growth of 2.4%. As for the customer resources, reach 75,000 million euros, up 5%, while those managed off-balance sheet register an annual growth of 25% up to 51,000 million euros, which represents a growth of 8%.”
As for Ireland, where the group is also present, “the credit portfolio grows 34% on an annual basis to 3,700 million euros, of which 2,700 million relate to mortgage credit, which grows 41%”.
The Irish branch’s pre-tax profit totaled 29 million euros, 12% more than the value recorded in the same period in 2023.
