The rating agency Morningstar DBRS has raised Bankinter's rating one notch from “A” ('low') to “A”
Two factors explain the upgrade of the long-term credit rating: the reinforced and resilient profitability shown by the Bank in recent years, and the Morningstar DBRS expectation that the Bank will continue to record robust performance in this area.
The rating of its Long-Term Senior Debt and Long-Term Deposits has been upgraded to “A” from A ('low'), its Non-Preferred Senior Debt to A ('low') from BBB ('high'), and its Subordinated Debt to BBB ('high') from BBB.
The credit rating agency Morningstar DBRS has raised Bankinter's long-term issuer rating by one level, placing it at “A”, compared to the previous rating, “A” (low). Morningstar DBRS puts the upgrade down to the Bank's strong and resilient track record of profitability in recent years.
The rating agency also expects the Bank to continue to record profitability at robust levels, in an environment of higher interest rates than those in force before 2022 and supported by credit growth, business diversification, high levels of efficiency, and a calculated risk cost.
Other factors that have prompted Morningstar DBRS to upgrade Bankinter's rating are the strength of its risk profile, backed by its solid risk management practices, its diversified loan portfolio and its consolidated asset quality metrics, supported by strong coverage ratios, despite the increase in non-performing loans due to tighter financial conditions.
In addition to all this, Bankinter's credit ratings have also taken into consideration the Bank's solid capital position, with buffers comfortably above the total minimum regulatory requirements, and its improved funding and liquidity profile in recent years, supported by a growing customer deposit base and an adequate mix of wholesale funding.
Morningstar DBRS has also upgraded the Bank's Senior Long-Term Debt and Long-Term Deposits to “A” from ” A” (low), its Non-Preferred Senior Long-Term Debt to “A” (low) from “BBB” (high), and its Subordinated Long-Term Debt to “BBB” (high) from “BBB”. Plus, the trends of all long-term credit ratings have been revised from “positive” to “stable”. The agency has also confirmed all of Bankinter's short-term credit ratings at R-1 (low), all with “” stable trends.
One of the most profitable banks.
Bankinter closed 2024 with a return on equity or ROE of 17.9%, which places it among the most profitable banks in Spain. It also recorded a fully-loaded CET1 ratio of 12.41%. This is 440 basis points above the minimum regulatory requirement imposed on Bankinter by the ECB, which at 8.01% is the lowest among listed banks in Spain.