Bankinter Consumer Finance

Bankinter Consumer Finance, the company specialising in credit cards and consumer loans, obtained excellent results in 2016 and it has become one of the major strategic levers for the Bank's growth. The investment in consumer loans totalled 1.05 billion euros, 46% more than last year. The number of customers also showed positive development, up to 897,761 compared to 728,000 in 2015, i.e. 23% more. The average investment per customer was 1,164 euros, which represented an increase of 18% compared to the previous year. According to data supplied by Asnef, the association of credit establishments, Bankinter Consumer Finance was the financial company that grew the most in 2016, and it now has a market share of 8.4%.

These results are partly related to the recovery of Spanish consumer spending, which reached a notable growth rate for the second consecutive year. The real rate of increase of consumer spending was 3.4% during the year. In addition, these results are also due to an ambitious growth plan involving teams and technology which, together with the Bank's traditional experience with risk management, facilitated the healthy expansion of the business.

Bankinter Consumer Finance comprises three areas:

• The area dedicated to consumer finance for Bankinter customers via a wide range of products and services both or individuals and for companies: personal loans and pre-authorised loans, credit cards, POS terminals and ATMs. To evaluate the last of these, it has a refined data analysis system that assesses the risk vs. profitability of a transaction and sets a specific price according to the applicant's profile.
• Bankintercard (formerly Obsidiana). It is the business for the open market and strategic alliances with major credit card companies. In this area, Bankinter has a much larger market share than it should have for its size.
• Point-of-sale financing. This includes consumer loans through an intermediary to finance goods or services. It also encompasses automobile loans through arrangements with dealerships.

The three areas saw significant growth in 2016. In consumer finance for customers, the product and marketing were improved, with the offer of value-added services such as Major Purchases, a service that can finance specific purchases at very competitive prices, or a cash transfer from the credit card to the account. Another significant milestone was the strategy for arrangements with other banking groups to provide customers free access to cash in more than 8,600 ATMs.

For its part, Bankintercard signed in September a strategic partnership with Air Europa to launch loyalty cards called Visa Air Europa Suma.

Lastly, Point-of-Sale Financing deployed its commercial network in 2016 to cover a majority of Spanish regions.

For 2017, Bankinter Consumer Finance intends to continue to benefit from the opportunities generated by the recovery of the economy. The objectives are as follows:

• Consolidate the launch of Point-of-Sale Financing.
• Continue exploring new strategic partnerships with large companies that are ready to use the financing products of Bankinter Consumer Finance as loyalty tools, and exploit synergies with other Group companies.
• Continue development of loan offerings, especially pre-authorised loans, and facilitate access to them through new products like the employee advance.