Bankinter begins 2015 with a quarterly net profit of 87.2 million euros, an increase of 45.3%, and reaches an ROE of 10.3%

In the first quarter of 2015 the Bankinter Group maintained the growth trend established last year. On 31 March the Group posted a net profit of 87.2 million euros and 124.6 million profit before tax which, in both cases, results in a growth of 45.3% compared to the first quarter of the previous year.

These solid results continue to be based on recurring business with customers in the strategic business lines, enabling ROE levels above capital costs. Thus, the return levels on equity of Bankinter are situated at levels that are attractive to investors, with an ROE of 10.3% at the close of the quarter, 3 percentage points above those of the previous year.

Similarly, the bank registered an improvement in the quality of all its assets and it maintained solvency levels among the highest in the sector.

Regarding the first point, Bankinter maintained the trend of a reduction of non-performing loans reported in 2014, placing this ratio at 4.56% compared with 5.05% a year ago. A figure that compares very positively with the sectorial average, which was situated at 12.5% in February, also reaching 43.2% coverage levels on non-performing loans, and 42% on problematic assets.

Furthermore, on 31 March 2015 the foreclosed property asset portfolio had a gross value of 599.9 million euros, 4.6% less than a year ago, and had a coverage of 38.8%.

With regards to solvency, Bankinter has a CET1 fully loaded capital ratio that is placed at 11.6%, which does not include the latent goodwill of the public debt portfolio and in which the deferred monetizable tax assets are irrelevant in weight .
Similarly, the bank has improved its financing structure in these twelve months, strengthening the ratio of deposits to loans up to 78.2%, whereas this ratio stood at 76.4% a year ago.

Additionally, the bank has enough liquid assets to face maturities of wholesale issuances pending for this year, 700 million euros, as well as for the years to come.

Typical business growth, with improvements on all margins.

The results presented by the Bankinter Group at the end of the first quarter of 2015 are posted on the growth of recurring business with customers, whose correct focus has brought with it an improvement to margins.

The Bankinter interest margin proves to be strong, despite the rate environment, supported by the improvement of volumes and the reduction of the funding cost, both of the retail and wholesale funds. Thus, on 31 March 2015 this margin came to 211.7 million euros, i.e. a 25.2% growth with respect to the figure a year ago.

At the close of the quarter the gross margin reached 392 million euros, representing an 8.6% on the previous year, mainly due to the behaviour of the net commissions and accumulated revenue, in addition to the exchange differentials, to which businesses such as Private Banking and international activity have contributed effectively.

With regards to the earnings before provisions, a total of 199.9 million euros were recorded at the end of March 2015, 12.1% up on the first quarter of 2014 after absorbing an increase of expenses, mostly dedicated to investment in strategic businesses and in the improvement of their supporting IT systems. Nonetheless, there was an improvement in the cost/income ratio of the banking activity with depreciation, whereby March 2015 closed at 43.5%, compared to 45.2% a year ago.

The quarter closed at 57,143.8 million euros with regards to the total assets of the Bankinter balance sheet, up 3.5% on March 2014.

The volume of credit to customers grew again in the quarter at 4.1% more than a year ago, reaching 42,648.8 million euros, whereby the granting of credits to companies was especially notable, increasing by 7.6%.

And the controlled resources experienced a remarkable growth of 14.8% this year compared to twelve months ago, reaching 58,791.5 million euros. The increase of resources managed off the balance sheet is especially significant in this section, rising by 47.4%. Within these, the investment funds managed and marketed by Bankinter Asset Management, grew by 47% with respect to the previous year, reaching 12.7 billion euros.

Customer business as an engine of growth.

The beginning of this has again brought to light the solidity of the bank's customer business. This good progress is especially significant insofar as the traditionally strategic businesses -such as Private Banking, Companies and Insurance-, and businesses that the bank has decided to foment -fundamentally Consumer and Personal Banking- and whose good results are already clearly demonstrated at the start of this year.

In Private Banking, the customer managed assets of the sector increased by 36.2% with respect to the previous year, coming to 26.3 billion euros. The new net worth of this quarter is 2.5 times higher than that recorded in the first quarter of 2014.

Similarly, Bankinter maintains its privileged leading position in the SICAV ranking, with 395 societies and a market share of 12.1%, far higher than the bank has in any other business.

In the area of Companies, the credit investment growth is especially significant, with a portfolio that comes to 18.7 billion euros at the quarter's close, resulting in a 7.6% growth on the previous year's figures.

The policies and market share of Línea Directa continue to grow. There are 6.4% more total policies than a year ago, amounting to 2.27 million policies at the close of the quarter. Especially notable along these lines is the growth in home insurance: a 19.4% increase. The profit before tax of this company on 31 March ascends to 33.9 million euros, with an individual ROE of 26.2%.

With regards to the Consumer and Banca Personal businesses, relaunched with new staff and products, the quarterly figures offer good prospects in the short and medium term.

The consumer funding business, coordinated via the company Bankinter Consumer Finance, suggests positive indicators, such as 10% more on active accounts compared to the same quarter of 2014, and 15% of growth in the investment portfolio. And insofar as Banca Personal, the managed assets of the sector customers increased by 12% in that same period.

Notable with respect to products is the good progress of two of the main commercial commitments of the bank: mortgages and the salary account. Thus, new mortgages maintain their positive trend of previous years, with a new production volume of 363 million euros in the quarter, 30% more than a year ago. The portfolio of salary accounts grew 10% year-on-year, coming to a total of 254,600 accounts.

(1) Excluding LDA

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