Bankinter registered a net profit of 417.9 million euros in the whole of the first half of the year, which is equivalent to an increase of 54% compared to the same period of 2022, as reported by the bank on Thursday when publishing its income statement.
The financial institution has highlighted that this increase occurred despite the fact that in the first quarter of the year the bank fully paid the new banking tax, which amounted to 77.5 million euros.
In this way, Bankinter’s total income (gross margin) between January and June was 1,278 million euros, which represents an increase of 33% compared to the start of 2022. Looking only at interest income (interest margin), these rose by 60%, to 1,068 million euros. Net fee income was flat at €303 million in the first half.
By business segments of the bank, the business banking area remained the main area, with total income of 569.8 million euros, 68.1% more; while commercial and private banking rose 46.8%, to 484.4 million euros, and the consumer goods segment stood at 194 million, 21.4% more.
On the other hand, Bankinter Portugal experienced growth of 81.1%, up to 147.7 million euros, and Evo improved its income to 30.5 million, 65.9% more. The capital market business increased by 14.7%, reaching revenues of 136.7 million euros at the end of the semester.
The entity’s operating costs increased by 6% compared to the previous year, to 452.3 million euros. Specifically, personnel expenses increased by 5.7%, up to 250.5 million, while administration and amortization expenses rose to 201.8 million, 5.8% more.
In this way, the operating margin increased by 54.3%, to 825.7 million euros, while the result before taxes was set at 625.2 million euros, 67.2% more than between January and June 2022.
Referring only to the data for the second quarter, Bankinter’s net profit was 233.2 million euros, double that of a year earlier. On his side, income rose to 662.1 million euros, 42.9% more.
PROFITABILITY AND BALANCE
Regarding other financial metrics, Bankinter has highlighted that the return on equity (ROE) was 15.5% at the end of the semester, almost 5.5 points more than at the end of the same period of 2022. ROTE also experienced a large increase, up to 16.44%. This places the bank in “privileged positions” within the sector, as highlighted.
As regards solvency, the CET1 ‘fully loaded’ capital ratio was 12.25% at the end of the semester, 40 basis points more than a year earlier. The total capital ratio rose by 113 basis points, to 16.24%.
In the first half, the bank’s delinquency rate experienced a slight increase of 11 basis points, up to 2.22%. However, the firm has highlighted that the coverage ratio for these defaulted loans rose by 1.6 percentage points, to 66.3%.
The bank’s balance sheet as of June 30 registered total assets worth 110,099.4 million euros, 2.4% more than at the end of the first half of 2022. Of this figure, the customer loan portfolio rose almost 3%, to 74,597 million euros.
The residential mortgage portfolio added a volume of 34,400 million euros at the group level at the end of June, 4.9% more. In Spain, Bankinter grew 0.4% in this business, something that the bank considers notable considering the 2.4% drop in the rest of the sector.
The generation of mortgages in the semester was 2,900 million euros, which represents a drop of 16% compared to the first six months of 2022. Bankinter has attributed this decrease to the “weaknesses” of the real estate market and the increase in interest rates.
On the other hand, the resources of retail clients experienced a rise of 0.5% in the semester compared to a year before, up to 77,958.5 million euros. In addition, the bank registered in the last year a movement of 10,000 million euros from current accounts on sight to term deposits.
In this sense, the wealth managed among Wealth Banking clients, those with the greatest economic potential, amounts to around 55,400 million euros, 11% more than the figure published a year ago. In Retail Banking, which includes the rest of the clients, the assets managed amount to 44,000 million euros, 7% above the figure from a year ago.
Bankinter has highlighted in this regard the “strength” of the asset management business due to the greater demand for these products by customers. Thus, own investment funds grew by 15.1%; third-party funds do so by 14.5%; by 7.7% plus pension funds; while the wealth management and sicavs business remains stable year-on-year, with a slight fall of 0.2%.
