Bankinter earned 271 million euros in the first half, as reported on Thursday by the National Securities Market Commission (CNMV). This is 76.2% less than in June of last year, when some millionaire capital gain from the split of Línea Directa to make it public (it had then made profits of 1,140 million). If these extraordinary elements of segregation are not taken into account, the profits of the entity increased by 10.8%, a notable increase despite the fact that the contribution of the insurer until the end of April is included in this period.
The pre-tax result of the banking activity reached 374 million, 30% more than a year ago in comparable terms if we exclude the contribution of Línea Directa. Return on equity (ROE) increased by two points to 11.6% and the CET1 capital ratio fully charged was 11.9%. Revenues also picked up: the gross margin increased by 5.3% to 962.8 million euros. “69% of this income comes from the interest margin and 32% from commissions drawn from commercial activity”, details the bank.
“All businesses and income statement margins, as well as the main indicators, show growth compared to the same period in 2021, which confirms Bankinter’s ability to provide pure banking income from Direct Line, including the segregation from the bank took place at the end of April 2021″, collects the entity in a press release.
The bank headed by María Dolores Dancausa, CEO of the group, thus filled the void left in its results by the contribution of the insurer thanks to the increase in purely banking activity. A positive behavior that was obtained thanks to normalized activity in the first half, marked by strong growth after the coronavirus crisis. However, the clouds return and become more visible as the bank itself recognizes it as a “moment of economic uncertainty”. On the one hand, there is the Russian invasion of Ukraine: it does not directly affect Spanish banks, since their exposure to both countries is minimal. But in the long run, it will hit them because of the negative impact it is already having on the economy.
Added to this is the setback caused by galloping inflation, also linked to the energy crisis caused by the war. In June, the upward price spiral even exceeded 10% in Spain. In this context, the European Central Bank (ECB) will intervene this Thursday with a rate hike. Initially, she had announced that the increase would be 25 points, although it is not excluded that it could even be 50 points due to inflationary pressures in the Union. Increases that will help banking activity and give it oxygen in its income statement, even if this will not be visible until at least a year later (loans linked to the price of money, such as mortgages , which are updated according to the Euribor, are generally reviewed every 12 months). Of course, this will put pressure on the default, which in the case of the entity that Dancausa leads stood at 2.11% until June (0.23 points less than in the first half of 2021).
Bankinter, as usual, opens the curtain on the presentation of banking results in Spain. And it does so on this occasion with the sector in the eye of the hurricane after the announcement by the President of the Government, Pedro Sánchez, of a new tax on the financial sector with which it hopes to raise 3,000 million in two years. During his speech at the State of the Nation debate, the President justified the tax for banks on the additional benefits that the entities will get from the aforementioned rate hike.
What this tax will consist of has not yet been specified. One of the options considered is to tax the total interest and fees charged by the entities at a rate which could be around 5%. During this first half, Bankinter closed with an interest margin of 665.7 million (4.1% more than in the same period of the previous year) and net commissions of 303 million euros ( an increase of 15%). On the expense side, the company’s operating expenses increased by 4.2% to 428 million.
More assets and credit investment volume
The group’s total assets closed the first half at 111,489.7 million euros, 8.6% more than a year ago. The volume of customer loan investments increased by 8.3%, to reach 72,445.9 million. And individual customer resources reached 77,546.8 million euros, or 13% more.
Bankinter highlights the good performance of its products, including the Employee Account, which continues to grow: “All categories of Commercial Banking products recorded positive performances. This is the case of the Payroll Account, one of the bank’s main sources of deposits, whose balance amounted to 16,500 million euros in June this year, 17% more than there a year, boosting its rate of growth despite the emergence of the market. other types of commercial proposals in direct competition”.
With regard to mortgage loans, the entity closed the month of June with a volume of 32,800 million euros if we include that managed by the Bankinter, EVO Banco or Avant Money brands in Ireland. The growth of this portfolio in Spain was 6.3% with new production of 3,400 million (15% more than in the same period of 2021, according to the bank).
By geographic area, Bankinter Portugal’s indicators continued to improve: the investment portfolio increased by 10%, to 7,500 million euros, and customer deposits increased by 19%, to 6,500 million. “All of this balance growth is translating into improvements across all account margins, starting with the interest margin, 11% higher than a year ago; i.e. the gross margin, which increased by 9%, with a strong impetus from commissions. All this concludes with a profit before provisions of 37 million euros, 14% higher than a year ago. And with a pre-tax result of 30 million euros, or 16% more”, collects the banknote.