External links: More detailed information on these risks can be found in the Prudential Relevance Report, the Group's Consolidated Legal Report and the Annual Corporate Governance Report. In 2022 Bankinter continued to make significant progress in managing the portfolio's climate change risk. A full explanation is provided in the Non-Financial Information Statement.
2022 was marked on the positive side by the overcoming of the pandemic and on the negative side by the invasion of Ukraine. The combination of both factors resulted in a progressively uncertain economic recovery throughout the year. Activity in the first half of the year received a boost from the easing of health restrictions. This momentum then lost steam, mostly due to the impacts of the war in Ukraine, which are affecting the entire world and are likely to continue for some time.
These effects, of a structural nature, impacted energy markets and supply chains and led to lower economic growth, a resurgence of inflation and a tightening of financing conditions, the prognosis and duration of which are uncertain.
Against this backdrop, Bankinter's activity remained buoyed by lending growth, mostly in Corporate Finance and in the residential mortgage businesses, which featured the activity rolled out by the newest business units (EVO Banco in Spain and Avant Money in Ireland). As described below, the Group's loans and advances to customers grew by 8.9% and computable risk (including signature risks) by 8.9%.
As we indicated in the 2021 annual report, the deployment of initiatives throughout the pandemic resulted in an important class of public support instruments (moratoria and publicly guaranteed loans). At the end of 2021, Bankinter Group's moratoria amounted to 2.068 billion euro. Of these, 98.3% had already expired by that date, and had therefore reverted to their original amortisation schedule. Loans and advances under public guarantee schemes amounted to 6.524 billion euro. At year-end 2022, these instruments showed the following data:
Legislative and non-legislative moratoria | |||||||
---|---|---|---|---|---|---|---|
Gross carrying amount, in thousands of € | Distribution by phases | ||||||
Number of debtors | Total | Legislative moratoria | Unexpired moratoria | 1 | 2 | 3 | |
Households | 1,373,589 | 673,409 | 0 | 81.0% | 15.6% | 3.4% | |
Secured by residential real estate property | 1,278,848 | 646,429 | 0 | 82.0% | 15.6% | 2.4% | |
Non-financial corporations | 320,027 | 319,656 | 6,996 | 83.0% | 14.5% | 2.5% | |
Small- and medium-sized enterprises | 271,367 | 270,997 | 6,996 | 80.3% | 16.9% | 2.7% | |
Secured by commercial real estate property | 140,699 | 140,616 | 5,161 | 83.7% | 15.7% | 0.6% | |
Total loans and advances | 19,178 | 1,702,518 | 1,001,966 | 6,996 | 81.5% | 15.3% | 3.2% |
Newly originated loans and advances subject to public guarantee schemes in the context of the COVID-19 crisis at 31 December 2022 | |||||
---|---|---|---|---|---|
Number of debtors | Gross carrying amount, in thousands of € | 1 | 2 | 3 | |
Households | 56,337 | 97.3% | 0.0% | 2.7% | |
Non-financial corporations | 5,657,234 | 87.6% | 8.8% | 3.7% | |
Total loans and advances | 29,189 | 5,742,545 | 87.7% | 8.7% | 3.7% |
These instruments were amortised during the year with virtually no incidents, demonstrating that they were effective in mitigating in the short term the adverse economic effects of the health crisis.
Bankinter maintains its risk appetite principles and levels and a prudent risk profile, the management of which is one of the central pillars of its competitive strategy. The bank has a risk management model of proven effectiveness that is in line with regulatory standards and best international practices, in proportion to the scale and complexity of its business activities.
The board of directors is ultimately responsible for risk management. It approves the Bank's strategy and, in particular, defines the risk appetite framework. The risk appetite framework is an internal governance document that defines:
The Risk Appetite Framework sets out the criteria for the Group's strategy, criteria which remain stable over the years:
Risk appetite statement. Bankinter carries out its activity with a moderate and prudent risk profile. Its objective is a balanced balance sheet and a recurrent and healthy income statement, to maximise the entity's value in the long term.
Risk management principles. The Group's appetite and tolerance for risk in its activities are subject to the following principles:
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