Bankinter obtains a net profit of 197.3 million euros in the first six months of the year, an increase of 31.6%

At the close of the first half of the year the Bankinter Group has consolidated its growth trend and the quality of its results declared last year. Thus, on 30 June 2015 the Group reached an accumulated net profit of 197.3 million euros and a profit before tax of 278.1 million, constituting increases of 31.6% and 29.9%, respectively, on the same period the previous year.

In line with previous quarters, these results are based on recurring business with customers, still the highest contributor to income, which obtained a major return on capital, with an ROE of 10.6%.

Similarly, the turnover is supported by quality assets and solvency levels maintaining their privileged position in the sector.

Thus, for yet another quarter Bankinter has reduced its non-performing loans rate, down to 4.4% compared to 5% a year ago; a ratio that compares very well to the sector average, which was situated at 11.4% in May, its lowest level in the last two years.

Furthermore, on 30 June 2015 the gross value of the foreclosed property asset portfolio was 575.7 million euros, 5.9% less than a year ago, and its coverage was 38.6%.

With regards to solvency, Bankinter continues to retain a solid CET1 fully loaded capital ratio of 11.5%, which does not include the latent goodwill of the debt portfolio and in which the deferred monetizable tax assets are greatly reduced in weight.

Similarly, the bank has an improved retail liquidity in this period, increasing the ratio of deposits to loans up to 81.1% compared to 78.3% at the close of 2014, and at the same time the wholesale financing and its cost have registered a reduction. Maturities of wholesale issuances pending until 2018 total 3,900 million euros, for which the bank has liquid assets valued at 7,900 million euros in order to face.

Growth of all margins.

The results of the Bankinter Group in the first half of 2015 reflect solidity throughout the income statement.

The interest margin continues on an upward trend, despite the rate environment, supported by the improvement of volumes, which is compensated by an improvement to product mix, and the reduction of the funding cost, both of the retail and wholesale funds. Thus, on 30 June 2015 this margin came to 432.2 million euros, constituting a 22.2% growth with respect to the figure a year ago.

The gross margin reached 806.8 million euros in this second quarter, representing an 8.4% increase, mainly due to the good progress of the accumulated revenue and fees, in addition to the exchange differentials. Income from fees is, to a great extent, a result of the good progress of the investment fund business, growing in volume by 34% this year; and also of the equity business, which reflects a growth of 11.1% in the number of purchase/sale orders and 16.3% in deposited cash.

It is worth noting, nonetheless, that, in accordance with the new interpretation of IFRS 21 in 2015, contributions to the Deposit Guarantee Fund will not be counted quarterly as has been the case until now, but instead as a single item in the last quarter of the year. This quarter’s P&L reflects this new criteria, having set the previous quarters on the same basis for comparison.

And with regards to earnings before provisions, they reached a total of 426.3 million euros on 30 June, 11.2% up on the first quarter of 2014 after absorbing an increase of expenses, parallel to investment in strategic businesses. Nonetheless, there was an improvement in the cost/income ratio of the banking activity with depreciation, which was at 43.2% on 30 June, compared to 44.5% a year ago.

Bankinter closed the second quarter at 57,955.5 million euros with regards to the total assets of the balance sheet, up 0.8% on June 2014.

The volume of credit to customers continues to experience its growth trend, reaching 43,112.2 million euros at the end of June, an increase of 3.8% compared to last year.

With regard to controlled resources, the rate of growth is even more solid: 11.5% more than in the first half of 2014, reaching 61,597.8 million euros. And as is now customary, this increase is especially significant in resources managed off the balance sheet, rising by 36.3%. Within these, the investment funds managed and marketed by Bankinter Gestión de Activos grew by 34% with respect to the previous year, reaching 13.1 billion euros.

Growth in credit to businesses and families is consolidated.

The results for the first half of the year reflect the strength of the bank's customer business.

The good progress of this data is founded both on the traditionally strategic businesses -such as Private Banking, Companies and Insurance-, and other types of customer and business segments that the bank has decidedly fomented this year, including Banca Personal and Consumer Financing.

In Private Banking, the customer managed assets of the sector came to 26.5 billion euros, a 28% increase with respect to the previous year. Focusing on the new net worth attracted in the second quarter of the year, a growth of 22% can be observed in contrast to the same quarter of 2014. The growth is also very remarkable with regard SICAVs, whereby the bank closed the second quarter with 410 companies managed, enabling a 12.3% increase in its market share in this business.

There is a substantial increase to the credit portfolio in the Companies sector for yet another quarter, reaching a net balance of 19 billion euros, 5.8% above the same figure twelve months ago.

The insurance business is still a good contributor to the income of the bank, with Línea Directa increasing the quantity of policies and the returns of the business this year, and consolidating its leadership in the direct insurance sector. At the close of the second quarter the total number of policies reached 6.8% more than a year ago, amounting to 2.31 million policies, whereby the growth of the home insurance was most notable: an increase of 19.8%.

With regards to the Consumer and Banca Personal businesses, data obtained at the close of the second quarter confirms the solidity of the strategic commitment.

Thus, the volume of Consumer investment is increased by 28% with respect to the same period last year, reaching 504 million euros; and the number of active accounts is increased by 19.6%, coming to 540,000 accounts.

As for products, the good reception that two of the bank's financial products are experiencing on the market is confirmed -in addition to investment funds- in mortgages and the salary account, upon which the bank is currently basing its business strategy.

Thus, in first six months of the year the new mortgage production has reached a volume of 906 million euros, 34% higher than the same figure of the same period of 2014. And with regards to the portfolio of salary accounts, the balance deposited in this product at the close of June 2015 has grown by 30% compared to the same period last year, at 3,855 million euros.

(1) To banking activity

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