Bankinter earns 731 million until September, 6.8% more, despite the drop in interest rates

Bankinter obtained a net profit of 731 million euros between January and September, which translates into an increase of still 6.8% compared to the same period in 2023 despite the lowering of interest rates initiated by the ECB, according to The bank reported this Thursday when publishing its quarterly accounts.

The bank’s total income (gross margin) reached 2,151.4 million euros, 7.3% more. Of that figure, net interest income (interest margin) was 1,728.4 million, 5.5% more. Likewise, the financial institution recorded net commission income of 521 million, 13.5% more.

Of the 2,151 million euros of total revenue, those from Spain increased by 6.5%, to 1,814 million euros, while those originating in Portugal rose by 13.9%, to 263 million and those from Ireland, a 5.6%, up to 75 million. On this point, the bank has highlighted the “strong momentum” of commercial activity during the period, as well as the “greater diversification” of the business.

Regarding solvency, the bank closed the third quarter with a capital ratio CET1 in its variant fully loaded of 12.56%, 65 basis points more than a year ago. The total capital ratio rose by 87 basis points, to 16.58%.

The results of the third quarter were more discreet: profit was reduced by 3% compared to the same period in 2023 (258 million, compared to 267 million euros a year earlier) due to a slowdown in credit income. Total income in the period from July to September rose 1.9%, to 740.9 million.

Spanish banks have benefited from the rise in loan prices, mostly linked to variable rates, which have had an impact on customers, while savers have received smaller increases. The declines of euriborthe benchmark that banks use to price mortgage loans, are beginning to translate into loan interest rates.

Bankinter’s interest margin, that is, the profits from loans minus the costs of deposits, remained practically stable in the quarter compared to the previous year and reached 568 million. Compared to the previous quarter, the interest margin fell 2%.

In July, Bankinter revised upwards its interest margin forecasts for this year, from stable to near single-digit growth, as it expected only two more rate cuts by the European Central Bank in the short term, but the cuts in Rates have accelerated since then.

During the press conference held by the bank this Thursday on the occasion of the publication of its quarterly results, the CEO of Bankinter, Gloria Ortiz, left the door open to appeal the extension of the banking tax. The bank’s number two has indicated that the entity will read “even the smallest fine print” of the wording of the tax when they make it permanent. “We owe it to our shareholders and we may have problems if we do not do and protect what is theirs,” he stated.

Gloria Ortiz, in any case, has rejected the possibility of taking part of the business outside of Spain to try to avoid the extraordinary tax that was imposed on banks two years ago and that the Government intends to make permanent. “I think we have to have a normal tone, this is a discussion between adults,” Ortiz stressed.

Specifically, the CEO has explained that the bank has the possibility of taking international business, treasury activities or bond portfolio activity outside, because they do not need to do them from a specific geography, but she has determined that it is not her vocation. “What is clear is that it has a series of technical and legal defects that should be resolved. Whatever the tax, if the tax is one that from our point of view complies with the law, we will pay it as we do with all taxes,” has emphasized.

Ortiz has stressed that Bankinter’s strategy “is not dictated by taxes”, but rather that the financial institution is where it believes it needs to be to do “good business” and continue growing.