2022 began on the positive path of recovery that started in 2021, as the last gasps of the pandemic crisis faded and European funds began to breathe new life into the economy. Although there were some delays in their application, these funds began to reach Spain, fostering a potential recovery in line with the ambitious project to transform our economy.
These hopes were dashed by the Russian invasion of Ukraine. The invasion caused geopolitical and economic tensions of such a magnitude that they disrupted the energy and commodity markets, and fed through into inflation, leading in turn to higher interest rates. These factors together put a brake on the recovery.
The financial sector had an ambivalent position with regard to this new scenario. While higher interest rates mean higher income through net interest income, they could also cause, in combination with inflation, an increase in non-performing loans, with the consequent impact for the bank of needing to make larger provisions.
Against this uncertain backdrop, Bankinter maintained its commercial strategy of consolidating its more mature business area, promoting the most recently created ones, and opening up new niches of activity in sectors with potential, resulting in greater diversification of its banking income. As is traditional in Bankinter, this was based on a relationship-banking concept rather than a product-based approach, with a strong focus on customer protection and an unswerving commitment to advice and quality of service. This is supported by its strong positioning in digitisation and innovation.
Against this uncertain backdrop, Bankinter maintained its commercial strategy of consolidating its more mature business area, promoting the most recently created ones, and opening up new niches of activity in sectors with potential, resulting in greater diversification of its banking income. As is traditional in Bankinter, this was based on a relationship-banking concept rather than a product-based approach, with a strong focus on customer protection and an unswerving commitment to advice and quality of service. This is supported by its strong positioning in digitisation and innovation.
The former pursued the acquisition and loyalty of new customers through some of its star products, such as its salary account and mortgages, in which Bankinter has continued to grow its market share with above-average growth in the sector.
In Private Banking, the Bank has combined its wide-ranging commercial portfolio and its advisory capabilities to the benefit of its customers in a market environment that has been far from favourable. The bank's alternative investment activity enjoyed a special boost in the year, with the launch of new investment vehicles in high-potential sectors of the real economy, offering excellent risk-return ratios that are decorrelated from the markets. In order to extend this service to more customers - as it was previously reserved for high net worth individuals - the bank launched an alternative investment manager at the end of the year, which will allow access to such assets for investments starting at 10,000 euros.
Outside Spain, Bankinter has consolidated its position in all the areas where it operates. This is the case of Bankinter Portugal, which it is increasing its market share every year and exploring how it can grow in some business areas (such as bank cards) through new alliances. This is also true of Avant Money in Ireland, which is experiencing exponential growth in its mortgage business and becoming one of the most competitive operators in the market.
2022 was also a positive year for the Consumer Finance business operated through the subsidiary Bankinter Consumer Finance, which achieved record results for its personal loans.
Bankinter is continuing to explore new business areas, such as insurance, where it has signed a major alliance with Liberty Seguros. This will enable the two companies to develop insurance activity through the new joint venture Bankinter Liberty Hogar y Auto, specialising in home and car insurance.
In Corporate Banking, Bankinter extracts the maximum potential from some of its star products and services, which are designed to help customers with their day-today needs and in their transformation and expansion plans. The support strategy for companies applying for, managing and processing European aid has become very efficient. Bankinter has advised more than 2,150 companies in this area.
The bank has also enhanced the capabilities of its international business with new products and teams, providing support, funding and commercial assistance to Spanish companies as they start to grow abroad. This is becoming one of Bankinter's main income generators as it develops into being one of the main operators in this business in the Spanish market. Bankinter has implemented substantial improvements to its digital operations for business customers. This has translated into significant increases in transactional business, as a result of stronger relationships between these customers and the Bank, and greater satisfaction with the service provided.
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