INTEGRATED ANNUAL REPORT 2019

Letter/Interview with the Chairman

2019 was a difficult year, in which some uncertainties that already existed in 2018 became more pronounced. On the international front, tensions between the United States and China once again curbed trade, even though there was some easing off towards the end of the year. In Europe, the prospect of the UK's disorderly exit was a serious threat for the performance of the EU economy.

Letter/Interview with the Chief Executive Officer

2019 was an excellent year for Bankinter. Our earnings exceeded those of the previous year for the seventh year running. We reported profit of 551 million euros, an increase of 4.6% compared to the figure of 526.4 million euros posted in 2018.

To address digital transformation, the sector is investing heavily in technology to optimise its processes and offer a better quality service. In turn, the low interest rate environment policy obliges companies to look for new revenue sources to maintain profitability margins.

Strategy and results

Bankinter's strategy for 2019 focused on measures to foster growth in customers, volume and operations.

Businesses

It was also a satisfactory year for mortgages, despite the difficulties caused by the new law.

Risk management

Once again, Bankinter grew in terms of loans and receivables above the sector average and maintained the high quality of its assets

Innovation

Bankinter is focusing on self-service, taking advantage of the benefits offered by the omnichannel approach. This means that customers are not only able to perform more and more transactions on their own (from registering to contracting products), but they will also have the opportunity to change the channel they use at any point in the process at their convenience.

Corporate governance

Bankinter intends to continue strengthening and improving its corporate governance framework, as it has done over the past few years, in order to meet and overcome the challenges ahead as responsibly and sustainably as possible.

Sustainability

Bankinter's sustainability strategy is based on the ‘Three in a Row’ Sustainability Plan for the responsible management of the three business dimensions (economy, society and the environment) to generate threefold value in the countries where the Bank operates.

People

In 2019, the Bank implemented improvements in the development of new skills and the talent required to address future challenges, with the aim of moving towards a real cultural transformation in structures and in the way of working. During the year, we saw the results of a relationship model that is much closer to the employee and to business, thanks to the HR business partner and the digitalisation of several internal processes, which allow us to offer a more efficient and faster service.