Bankinter’s third quarter results reveal “strong business growth and balance sheet strength”, says the Spanish bank in a statement. In the first nine months there was an 11% growth in profits, with Portugal and Ireland contributing to the commercial results achieved.
According to Bankinter, which operates in Portugal through a branch, this performance is due to “a very customer-centric commercial approach, differentiating products and a strong dynamism in attracting business, even in a context of uncertainty like the current one, being at the origin of the profitable growth recorded by the bank in all types of activities and in all geographies”.
It is in the Spanish market that the bank concentrates the majority of its business, “representing 87% of the volume of business with customers and generating 84% of the group’s gross margin”.
“The bank’s credit portfolio grows 5.3% above the sector average in all countries in which the group is present, especially in Ireland (+20% portfolio growth) and in Portugal (+11%)”.
In a statement, the group led by Gloria Ortiz highlights the “solid growth of 20% in resources managed off-balance sheet: investment and pension funds, asset management and alternative investment”, as well as a return on equity (ROE) ratio, which measures the ability to generate money for shareholders, of 18.2%, and a CET1 capital ratio of 12.9%. The efficiency ratio is 36.2% and the non-performing ratio is 2.05%.
In Portugal, the Bankinter branch recorded a profit before tax of 157 million euros, which represents an increase of 2% and compares with a profit before tax in Spain of 995 million, an increase of 6%. The result in Portugal had the impact “of higher costs associated with investment in new projects and the new distribution of costs in a balanced way throughout all quarters of the year”.
As is already customary, the second geography in terms of business volume and results is Portugal. Bankinter reports that the Portuguese branch had a portfolio of 11 billion euros, which represents a growth of 11%, increasing customer resources, both in the wholesale and retail segments, to 10 billion, that is, 5% more than a year ago.
“With regard to resources managed off-balance sheet, including assets under custody, the growth is much higher, 23%, totaling 11 billion euros, which highlights a strong commercial dynamism and a clear orientation towards products with greater added value”. Bankinter Portugal’s profit before taxes is 157 million euros, an increase of 2%, even after the impact of higher costs associated with investment in new projects and the new distribution of costs in a balanced manner throughout all quarters of the year.
As for the business in Ireland, the growth rate “is significantly higher”. The credit portfolio grows 20% year-on-year, reaching 4.4 billion euros, of which 3.4 billion correspond to mortgage credit, which grows 23%, with the remaining amount relating to consumer credit. “The non-performing loan ratio of the global portfolio stands at 0.3% and the gross margin of the business in Ireland grew by 14%, well above the other geographies, with a profit before tax of 34 million euros, which represents a growth of 17%”.
The commercial focus of the Bankinter group is “centered on strengthening relationships with current customers, attracting new business and, consequently, profitable growth in the bank’s market share in all countries and segments in which it operates. This strategy is reflected in the good evolution that the group’s revenues continue to demonstrate, reaching historic values, supported by efficiency and the quality of the balance sheet”.