Bankinter reports net profits of 300 million euros in September, up by 31%, thanks to the strength of the customer business

The Bankinter Group reached an accumulated net profit of 299.5 million euros and a profit before tax of 419.1 million at the end of the third quarter of 2015, constituting increases of 30.8% and 28.1%, respectively, on the same period the previous year.

In line with the trend of previous quarters, these results are based on recurring business with customers, still the highest contributor to income with 84%, which obtained a major return on capital, with an ROE of 10.7%.

At the same time, Bankinter maintains its traditional competitive edge in terms of asset quality and solvency levels.

Thus, for the sixth successive quarter Bankinter has reduced its non-performing loans rate, down to 4.35% compared to 4.96% a year ago; a ratio that compares very well with the sector average which, according to the latest published data at the end of August, recovered slightly at 10.95%.

Furthermore, on 30 September 2015 the foreclosed property asset portfolio had a gross value of 546 million euros, 8% less than a year ago, and had a coverage of 39.4%.

With regards to solvency, the bank maintains a solid CET1 fully loaded capital ratio of 11.5%, which is above regulatory demands.

Similarly, the bank has improved its retail liquidity, increasing the ratio of deposits to loans up to 82.3% compared to 80.3% a year ago. Maturities of wholesale issuances pending until 2018 total 3,800 million euros, for which the bank has liquid assets valued at 8,700 million euros in order to face.

Growth of all margins.

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

The net interest margin proves to be strong, despite the rate environment, supported by the improvement of volumes. Thus, on 30 September 2015 this margin came to 648.1 million euros, i.e. a 19% growth with respect to the figure a year ago.

The gross margin reached 1,200 million euros at the end of the quarter, representing 8.4% more than last year, mainly due to the good progress of the fees, with a net amount in the first nine months of the year that is 7.5% above the same period in 2014. This increase is the result of the good evolution of the asset management business, of equity activity and of the international business with Companies.

And with regards to the earnings before provisions, at the end of September they reached 627.3 million euros, 10.8% more than a year ago. And all of this is achieved despite having produced an increase in expenses during the period, resulting from the greater investment in people, technology and marketing in the strategic sectors. However, the cost/income ratio of the banking activity with depreciation came in at 44% on 30 September 2015, compared to 45.3% a year ago.

With regard to the Bankinter balance sheet, the figure for total assets at the end of September was 58,625.8 million euros, 4.1% above that of a year ago.

The volume of credit to customers continues to experience solid growth, testament to the attentiveness of the bank to the demand for financing by families and companies. This credit volume reached 43,379.6 million euros at the end of the third quarter, an increase of 4.1% compared to last year.

With regard to controlled resources, the growth rate of previous quarters is maintained, standing at 62,905 million euros, 11.7% more than in September 2014. This growth is especially significant in resources managed off the balance sheet, rising by 26.5% compared to one year ago. Within these, the investment funds managed and marketed by Bankinter Asset Management grew by 24% with respect to the previous year, reaching 13 billion euros.

Upward trend of the customer business.

The results of the Bankinter Group highlight the good progress of the customer business in the strategic segments and businesses, both in terms of volume and income.

The growth trend is especially significant in businesses to which the bank has been decidedly committing in recent years, such as Private Banking and Corporate Banking, as well as others that the bank has recently fomented in its strategy, including Banca Personal and, above all Consumer Financing.

In Private Banking, the customer managed assets of the sector came to 26,900 million euros, a 20.4% increase on the previous year. The new net worth attracted during the third quarter of the year is also notable: 1 billion euros more than that attracted among customers of the sector in the same quarter of 2014. Similarly, the growth with regard SICAVs is also very remarkable, whereby the bank reached 447 companies managed, enabling it a 13.4% increase in its market share in this business.

Turning to the Companies segment, credit investment has grown again at 4.2% more than a year ago, reaching a balance of 19,100 million euros on 30 September 2015. The contribution to the income of the international business of the corporate customers is becoming significant in this sector.

The insurance business is still a good contributor to the income of the bank. The positive trend of Línea Directa in the car and home sectors continues, with an increase in the last year in the number of policies, the return of the business and the market share in the direct insurance sector. At the close of the third quarter the total number of policies reached 6.7% more than in September 2014, amounting to 2.34 million policies, whereby the growth of the home insurance was most notable in yet another quarter: 19.7%.

The good result in the Consumer Financing business, to which the bank wants to give special impetus via the repositioning of Bankinter Consumer Finance, is also very significant. Thus, the figure of consumer investment has reached a volume of 632 million euros, 55% more than a year ago. The growth in the attraction of new accounts is even more noteworthy: During the first 9 months of 2015, 121% more new customer accounts have been acquired than over the same period of time in 2014.

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 quarters, reaching a new production volume of 1,318 million euros in the first nine months of 2015, 31% more than in the same period in 2014. And with regards to the portfolio of salary accounts, the balance deposited in this product at the close of September 2015 stood at 3,916 million euros, 28% more than a year ago.

Key figures 3rd Quarter 2015

(1) To banking activity with depreciation.

See results