Last year, Bankinter Portugal focused on supporting its customers in tackling the economic and financial effects of the health crisis and on protecting its employees through a strict protocol of security measures, which enabled branches to remain open even during the lockdown. It also strengthened its telephone banking and digital banking capabilities to respond to the growing demand for remote service.
Bankinter Portugal made available to its customers the possibility of applying for credit moratiums, even before they were legally mandatory, among other measures. Loan payments amounting to 1.054 billion euros were made more flexible, of which 589 million corresponded to mortgages, 426 to companies and 39 to consumer finance.
Against this setting, Bankinter Portugal's recurring business grew consistently once again. The gross operating income increased by 13% (to 138 million euros); the operating margin, 50% (54.7 million); the turnover, 6.3% (15.6 billion), and the total credit granted, 7% (6.6 billion). Customer funds rose 6% to 4.8 billion euros.
However, earnings before tax were 45 million euros, a decrease of 31% compared to 2019. This was mainly due to the fact that provisions were no longer released and instead were carried out, as a precautionary measure in anticipation of worsening macroeconomic conditions.
The business areas performed as follows:
Commercial Retail Banking. It grew substantially in strategic headings for the business, including shareholders' equity, which totalled 633 million euros, of which 341 million were off-balance-sheet funds. The customer base increased by 16%, with turnover improving by more than 7%. The percentage of customers who interact with Bankinter exclusively digitally is now 40.6.
Corporate Banking. The segment of companies with up to five million euros a year in deposits registered a turnover of 1.8 billion, 26% more than in 2019. The segment of medium-sized companies and corporations closed with a growth of 8.3% in its loan book, of 13.5% in the number of customers managed and 13% in the gross operating income generated. The international business registered a 22.6% increase in its loan book.
Bankinter Consumer Finance. Business grew by around 18%, reaching 250 million euros and 140,000 customers. Given the circumstances, its main objective was the offer tools that would allow the use of fast, secure and uncomplicated contactless and digital payment methods, as well as to promote remote contract arrangements without the need for paper or in-person visits.
Bankinter Asset Management. The year was marked by the completion of the merger between Bankinter Gestão Ativos and its Spanish counterpart Bankinter Gestión de Activos, and the establishment of a branch of the latter in Portugal on 1 July. Its assets under management stood at 756 million euros at the end of 2020
Bankinter Seguros de Vida. Mathematical reserves reached 1.596 billion euros, an improvement of 2.5%, vs 4.2% drop in the market as a whole in Portugal. Written premiums also grew above average. One of the highlights was the enormous success of life insurance for corporate customers, providing financial protection for the families of its subscribers.
With regard to 2021 (the year of its fifth anniversary), the priority of Bankinter Portugal is to maintain its protection of employees and customers and the measures to support the Portuguese economy, as well as the reinforcement and launch of tools that promote remote transactions.
2021 will also serve to reaffirm the innovative and differentiating nature of the Bank's offer of products and solutions. Together with the team's commitment and quality, this will allow Bankinter to reinforce its leading position in the provision of excellent banking services in Portugal.
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