Bankinter achieved a pre-crisis level of results with a net profit of €276 million, up 45.3%.

In 2014, Grupo Bankinter obtained a net profit of €275.9 million; and a pre-tax profit of 392.8 million. These are the bank's best results in the last seven years, returning to re-crisis levels in terms of amount and recurrence.

Before the standard comparison with 2013, it is important to note that, with the retroactive coming-into-effect of the interpretation of international accounting standards on taxes (CINIIF 21), an advance accounts recognition process has been carried out on the ordinary and extraordinary contributions to the Deposit Guarantee Fund in 2013 and 2014. For the purpose of comparison, this involves adapting the accounts published in 2013 (reducing the line of "Other products/operating charges" and, consequently, the gross margin, the operating result before and after provisions, the result before taxes and the consolidated result).

Taking into account this interpretation of the accounting standard, which is applicable across the Spanish financial sector, the bank's net profits are up 45.3% on the adjusted results for 2013, which would be €189.9 million (in comparison with the 215.4 million published at the time). Profit before tax in 2014 is 50.5% up on the readjusted figure of 2013, which would be 261.1 million in comparison with the 297.6 million published at the time.

The sound results obtained by Bankinter are based on growth in income from the typical client business, up 8.2% over the year, which has been able to compensate the fall in income from financial transactions.

It is also important to note the good quality of the bank's assets, at the highest level in the sector, and its reinforced solvency, capable of withstanding adverse scenarios as shown in the most recent European stress tests.

2014 is a point of inflection in the balance of problematic assets and it is the first year to record a net reduction. As a result, the Bank's default ratio in December stood at 4.72% in comparison with 4.98% one year ago. This figure is far below the sector average, which stood at 12.75% in November. At the same time, the sum of net additions to NPLs and bad debts continues to decline, with a consequent reduction in the allocation to provisions.

The foreclosed real estate assets portfolio has been reduced after several years' growth in annual terms. At the close of 2014, its gross value was €585.8 million, 6.7% down on the previous year. It also had a cover of 39.1%.

Furthermore, it is a very small portfolio in comparison with the other banks and is concentrated 44% on residential properties. The bank has also increased the rate of sale of said assets by 14.5% in comparison with the previous year, showing the quality and good situation of the product being offered, as well as the bank's capacity for commercialisation in this business.

In terms of solvency, Bankinter has reached the close of the year with a CET1 capital ratio of 11.87%, according to Basel III criteria. The figure would have reached 12.06% if the retroactive application of the new accounting criterion had not been applied. The CET1 fully loaded capital ratio stood at 11.5% in December, one of the highest in the sector.

Similarly, it is important to note that Bankinter has a comfortable maturities structure that is balanced and free from concentrations, with 1,200 million maturities anticipated for 2015 and 1,400 million anticipated for 2016. To meet said maturities, the bank has €6,100 million in liquid assets and a capacity for issuing mortgage-backed bonds for a value of 5,300 million.

In addition, Bankinter has improved its financing structure with a deposits-over-credits ratio of 78.3% in comparison with the 76.5% of one year ago; and it has reduced the liquidity gap by €1,500 million in comparison with the close of 2013.

Growth in every account margin.

The positive results filed by the Bankinter Group at the close of 2014 are based on the typical banking business and not on returns from its fixed-income securities portfolio. Furthermore, they reveal an improvement in every account margin.

Bankinter's interest margin has grown constantly throughout the year and in comparison with previous years. At 31 December 2014 it reached €755.4 million, up 18.8% on the previous year. This sustained growth is based on the healthy evolution of the client margin, which has improved over the year by 45 basis points as a result of the continued reduction of costs in resources.

The gross margin stands at €1448.8 million, 8.2% up on the previous year, largely as a result of the satisfactory evolution of income from fees, which rose 17% over the year thanks to higher client business levels, especially in areas such as asset management and the variable-income business. Income from fees has compensated the lower contribution from institutional financial transactions, where income is down 41.7% on the same figure for 2013.

The margin before provisions closes the year at €729.6 million, up 10.7%, after absorbing an increase in expenses due to the larger investments made to support business growth. This has nevertheless not affected the banking business efficiency ratio, which has improved in comparison with previous years.

As far as Bankinter's balance sheet is concerned, total assets have grown from €55,157.7 million at the close of 2013 to €57,333 million this year, an increase of 3.9%.

Customer lending reached €42,446.7 million at the close of 2014, up 3% on the previous year. This healthy figure is, above all, the result of yet another year with a positive evolution of the corporate business, which has a credit portfolio that is up 6.7% on the previous year and returns an investment volume of €18,900 million.

As of December, controlled resources stood at €55,449.4 million, up 8.7% on last year's figure. Especially significant once again, however, are resources managed off the balance sheet, up 40.7%, and, as part of said resources, the investment funds managed and marketed by Bankinter Asset Management, which are up 39% to a volume of €11,000 million.

The client business as the driving force behind results.

2014 has been very positive for every line of business with clients, confirmed as the driving force behind the Group's results. The healthy client capture rate has been an outstanding starting point, with an increase of 24% in new captures in comparison with 2013.

As a result of this growth in client volume and higher business levels, the bank continues to strengthen the different lines of its balance sheet in terms of both resources and investment.

Accordingly, with regard to customer lending, Bankinter is one of the few banks closing the year with an increase of 3% in total lending investment, a figure that rises a further 6.7% in the corporate lending portfolio.

Focusing on the marketing of mortgages, where the bank has a highly competitive offer, Bankinter continues to move forward at cruising speed, backed by its publicity campaign. In 2014, the bank tripled the volume of new mortgages in comparison with 2013, reaching the figure of €1550 million in new production.

In terms of resources, Bankinter increased its retail funds (on-call accounts, term deposits and promissory notes) by 7.2% over the year.

With regard to strategic businesses, special mention must be made of the healthy figures in Private Banking, a sector in which Bankinter is a fully consolidated player of note. Customer equity in this segment has risen 26% in 2014 in comparison with 2013, to a figure of €23,100 million. Bankinter has also maintained its privileged position as leader in the SICAV ranking, with 383 companies managed at the close of the year, 29% more than in 2013, with a market share of 11.9%.

Over the year, the positive evolution in other businesses has been outstanding, such as in the customer equities business, with figures that include an increase of 23.4% in the number of orders processed and 17.5% in the value of cash deposited in comparison with 2013. As a result, net commissions from this business are up 35.6% on 2013.

It is also important to note two businesses poised for increasing prominence in the coming years: consumer finance, which has now started to return significant figures, and the re-launching of the Personal Banking business, with new teams and products.

As regards Línea Directa, the number of insurance policies and the market share continue to increase. At the close of 2014, total policies were up 6.3% on the previous year, with a total of 2.2 million policies. Said figure includes outstanding growth in home insurance policies: a 19.2% year-on-year increase. The company's profit before tax for 2014 totalled €133.9 million, up 4.2% on 2013, with an individual ROE of 23.7%.

Finally, special mention must be made of the positive behaviour of BKT shares in this period, with a revaluation of 34.4%, reaching prices close to historical maximums. A very outstanding figure, especially taking into account the fact that Bankinter was the most profitable bank share in Europe in 2013, with a revaluation of almost 150%. All this shows that Bankinter has improved its credibility and international standing among investors, as shown in its share price and the improvement in its ratings by the main credit rating agencies, which now position the bank at "investment-grade".

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