Bankinter in Ireland

Integration and strong growth of customer credit and profitability

In 2024, five years after Bankinter's arrival in Ireland through its subsidiary Avantcard DAC (which operates as Avant Money), the bank commenced to convert Avant Money into the Irish branch of Bankinter through the official process. The integration will enable the bank to introduce a broader range of banking products in Ireland.

In parallel, Avant Money experienced strong growth in its main business indicators in the Irish market. Gross loan balances to customers reached 3.8 billion euros, 27% more than the previous year. Pre-tax profit stood at 40.7 million euros, 23% more than in 2023.

Gross operating income stood at 103.1 million euros, 6% more than the previous year. The net interest margin rose by 7% to 99.9 million euros, while net fees increased by 6% to 9.6 million euros.

Moreover, general expenses amounted to 49.4 million euros, representing an 8% increase, mainly due to new hires and the repayment of the investment in technology required for the company's growth. The cost-to-income ratio stood at 47.9%, compared to 47.0% in 2023.

Bankinter Ireland's performance in the area of credit risk was also very solid. The cost of credit risk amounted to 13.0 million euros, representing 0.38% of average gross balances for the year. The non-performing loan ratio closed the year at 0.32%, 4 basis points lower than in 2023.

Consumer credit and mortgages

The dynamism of the Irish business sector benefited both consumer credit and mortgage activity. In consumer finance, credit card and personal loan portfolios reached 972 million euros, representing an increase of 17%. The bank generated 356 million euros of new loans, up 28% year-on-year, outpacing industry growth, according to data from the Banking and Payments Federation of Ireland (BPFI) as of November 2024. The company estimates a 7% share of the overall personal credit market, including credit unions. The consumer finance default rate stood at 1.26% at the end of the year, 8 basis points lower than in 2023. The cost of credit risk for the portfolio was 1.69% of average balances during the year.

With regard to mortgages, the total balances reached 2.9 billion euros on December 2024, representing a 31% increase. The company generated 846 million euros in new mortgages, 13% more than the previous year, outperforming the market as a whole, which remained stable, according to BPFI data. The bank estimates a 7% market share in new mortgage originations. These figures were consistent with the solid credit risk management procedures. At the end of the reporting period, the delinquency rate in the mortgage portfolio stood at 0.01%.