Morningstar DBRS confirms all of Bankinter's credit ratings
The rating agency says this confirmation reflects the positive momentum in the bank's earnings, supported by the development of its business.
It says that Bankinter's long-term rating could improve if it continues to demonstrate “sustained profitability and high asset quality ratios in the coming quarters”, together with robust capitalisation and levels of finance.
The credit rating agency Morningstar DBRS has confirmed all of Bankinter's credit ratings, including maintaining its long-term rating at “A” (low). It has held its outlook at “positive”.
Through these ratings, Morningstar DBRS recognises the positive trend in Bankinter's earnings, “supported by higher interest rates and growth in its loan book”. The agency expects Bankinter's profitability to improve steadily over the medium term, due to interest rates returning to more normal levels, increased business volumes and diversification of revenue sources.
It notes that Bankinter could improve its “long-term ratings if it continues to demonstrate sustained profitability and high asset quality ratios in the coming quarters, while maintaining robust financing and capitalisation”.
At the end of the first quarter, Bankinter was in the lead for profitability among the main Spanish banks, with a return on equity (RoE) of 17.4%. It's CET1 fully loaded capital ratio stood at 12.5%, compared to 12.30% in December 2023. This comfortably exceeds the minimum of 7.80% the European Central Bank requires the bank to hold.
Moreover, the bank's profits in the first quarter were due to growth in the business, as reflected in the 5% increase in its lending activity, to 77,041 million euros, and the 6% increase in the Group's capitalisation, to 78,750 million.