Bankinter overcomes the environment of lower official interest rates and manages to close 2024 with record results. It ended the year with a net profit of 953 million euros, which represents 12.8% more year-on-year. And the entity highlights the “strong impulse of commercial activity, increasingly diversified.” Looking ahead to 2025, due to the relaxation of monetary policy, analysts do predict a certain worsening of the income statements of financial entities.
«The entity has been able to successfully combine the negative evolution of interest rates that occurred during the year with an increase in business volumes, both in credit investment and in customer resources, especially those managed off-balance sheet, which closes a year historical. This profitable growth of recurring activity, together with a risk profile that remains at very positive figures and efficiency and profitability ratios in sector leadership positions, make up the main variables of a very successful year,” states the group led by the CEO Gloria Ortiz.
In terms of profitability, expressed in ROEthe bank improves the ratio to 17.9%, compared to 17.1% a year before. Measured in ROTE, the year ended at 19%, 84 basis points higher year-on-year. The ‘fully loaded’ CET1 capital ratio also improves in this period to 12.41%, which is 440 basis points above the minimum required for Bankinter by the ECB, while the default ratio remains at 2. 11%, with coverage on this delinquency that rises due to prudential issues to 68.8%.
These figures are driven by the growth of the financial entity’s margins. «All account margins show better figures than the previous yearwhich means, on the one hand, that the bank has been able to manage spreads well in an environment of changing rates and boost commercial activity in all its geographies to generate greater income,” Bankinter says.
The interest margin ends 2024 at 2,278 million euros, which means 2.9% more than last year. Net commissions amounted to 717 million euros, 14.9% more than in 2023. Thus, the gross margin, which reflects all income, amounts to 2,901 million euros at the end of the year, 9.1 % more than a year ago, “with good performance of commission income, which reflects both greater transactional activity of clients and the good year that investment products and intermediation services have had in different markets.”
These results have also been supported by an increasing contribution from the foreign business of Portugal and Irelandtwo regions that Bankinter has been promoting for some time and hopes to continue doing so in the future. Bankinter Portugal’s pre-tax profit in 2024 was 195 million euros, 18% higher than the previous year. And as for Ireland, its result before tax was 41 million euros, 23% higher than the figure from a year ago.
By business segments, in commercial banking, “the asset management activity, fundamental in the generation of income via commissions, has led the bank’s growth, with a figure of resources managed off-balance sheet that at the end of December reached 57,686 million euros, 22.2% more.
And as for mortgages, these have “experienced a certain boost in the second part of the year, in line with the better performance of the home purchase and sale market, which has allowed the new mortgage production to equal that of the previous year, 5.8 billion of euros, of which around 70% have been contracted at a fixed or mixed rate.
Report a bug
#Bankinter #achieves #record #profits #million