Credit risk
Keeping the level of non-performing loans low
Credit risk indicators remained at low levels throughout 2024. Thus, loans and advances to customers at amortised cost grew by 3.86% and the computable risk (which includes signature risks) by 3.82%. The risk under special surveillance was reduced by 4.06% in a more benign economic context during the year. Non-performing exposure increased by 3.92% and the non-performing loan rate stood at 2.11%, the same as the previous year. The non-performing loan rate in Spain is 71% of the sector average (3.38% according to data from the Banco de España from November 2024).
Provisions for credit risk increased by 10.59%. At the end of December 2024, the portfolio of foreclosed assets was 61 million euros, 0.1% of the total credit risk, after having decreased by 28.24% during the year.
| Asset quality – Credit risk | ||||
| Thousands of euros | 31/12/2024 | 31/12/2023 | Amount | % |
| Eligible exposures | 89,204,429 | 85,922,011 | 3,282,418 | 3.82 |
| Phase 1 (normal risk) | 84,699,242 | 81,376,831 | 3,322,411 | 4.08 |
| Stage 2 (underperforming exposures) | 2,621,382 | 2,732,427 | -111,044 | -4.06 |
| Phase 3 (doubtful risk) | 1,883,804 | 1,812,753 | 71,050 | 3.92 |
| Provisions for credit risk | 1,296,822 | 1,172,598 | 124,223 | 10.59 |
| Phase 1 (normal risk) | 141,536 | 148,801 | -7,265 | -4.88 |
| Stage 2 (underperforming exposures) | 93,581 | 105,488 | -11,906 | -11.29 |
| Phase 3 (doubtful risk) | 1,061,705 | 918,310 | 143,395 | 15.62 |
| NPL ratio (%) | 2.11 | 2.11 | 0.00 | 0.10 |
| Coverage ratio (%) | 68.84 | 64.69 | 4.15 | 6.42 |
| Foreclosed assets | 61,178 | 85,253 | -24,076 | -28.24 |
| Provision for foreclosed assets | 40,933 | 54,475 | -13,542 | -24.86 |
| Foreclosure coverage (%) | 66.91 | 63.90 | 3.01 | 4.71 |
Trends in the NPL ratio (%) – Spain
Sector data: Banco de España, November 2024
Following is a description of the trends and main figures for eligible exposures in Spain by internal business segments:
Individuals. In 2024, customer credit in Spain grew by 3.8%. The portfolio at year-end stood at 38.007 billion euros, with a NPL ratio of 1.50%.
The residential mortgage portfolio of individuals recorded a Loan-To-Value ratio of 49.9%, where 84% of these loans had the first homes of these individuals as collateral. The non-performing loan rate for this portfolio was 1.22%. The average effort (measured as the proportion of income that the customer allocates to paying mortgage loan instalments) remained extremely low (25.3%). Bankinter Consumer Finance earned 3.3 billion euros in consumer credit in Spain, with a growth of 2.7%, which represents a slowdown compared to the previous year, as well as a non-performing loan ratio of 6.4%. The risk-adjusted margin and the default rates and costs remain controlled and in line with what is typical for this type of business.
Corporate Banking. Credit risk in the Large-corporate Banking area grew by 4.7%, reaching a volume of 21.4 billion euros, with a NPL ratio of 0.64%. In 2024, Bankinter continued to prioritise its growth in this segment, which is more resilient in adverse economic circumstances.
Small and medium-sized enterprises. The SME Banking (small and medium-size enterprises) segment grew by 4.0%, ending the year with a loan book of 16.6 billion euros and a NPL ratio of 6.32%.
EVO Banco. The subsidiary, which focuses its banking business on individuals, contributed an additional 3.8 billion euros in credit risk to the Group in Spain (13.2% more than in the previous year), with an NPL ratio of 0.55% at year end.
Portugal. Bankinter Portugal’s loan book contributed 10.8 billion euros of exposures to the balance sheet at year-end, an increase of 8.9% in the year, and a NPL ratio of 1.32%.
Ireland. Customer credit activity in Ireland is carried out through the subsidiary Avant Money Plc, part of Bankinter Consumer Finance. By the end of the reporting period, Avant Money held 3.9 billion euros in credit risk, of which 2.8 billion euros were in residential mortgages and 1.1 billion euros in consumer finance. Avant Money's growth in the year was 27.3%, with a non-performing loan ratio of 1.17%. The emphasis on mortgage activity gives the business a very moderate risk profile.