In This Article:
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Loan Book Growth: 5% increase.
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Retail Deposits Growth: 4% increase.
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Off-Balance Sheet Products Growth: 23% year-on-year increase.
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Net Interest Income Growth: 5.5% increase.
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Fee Income Growth: 13.5% increase.
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Return on Equity: 17%.
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Total Business Volume Increase: EUR 17 billion year-on-year, representing a 9% increase.
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Total Gross Operating Income: EUR 2,151 million, a 7% increase.
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Operating Expenses: 6% increase.
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Profit Before Taxes: EUR 1,083 million, an 8% increase year-on-year.
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Net Profit: EUR 731 million, a 7% increase year-on-year.
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Net Interest Margin: 2% decrease quarter-on-quarter.
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Cost to Income Ratio: 35% year-to-date.
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Loan Loss Provisions: EUR 262 million.
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Cost of Risk: 40 basis points.
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NPL Ratio: 2.2%.
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Fully Loaded CET1 Ratio: 12.56%.
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Dividend Yield: 6.2%.
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Tangible Book Value Per Share: EUR 6.24, a 10% increase versus last year.
Release Date: October 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Bankinter SA (BKIMF) reported strong financial results with a 7% increase in net profit year-on-year, reaching EUR 731 million.
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The company achieved a 17% return on equity, significantly above the cost of capital, indicating strong shareholder value creation.
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Bankinter SA (BKIMF) demonstrated robust growth in its loan book by 5% and retail deposits by 4%, with off-balance sheet products growing by 23% year-on-year.
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The company successfully diversified its income sources, with net interest income increasing by 5.5% and fees growing by 13.5%, reflecting successful commercial activities.
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Bankinter SA (BKIMF) maintained an exceptional cost-to-income ratio of 35%, showcasing strong operational efficiency.
Negative Points
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The company experienced a 2% decrease in net interest margin on a quarter-on-quarter basis due to interest rate movements.
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Deposit costs increased by 7 basis points, impacting the overall cost structure.
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There is anticipated volatility in net interest income over the coming quarters due to fluctuating interest rates.
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The company faces challenges in maintaining customer margins amidst changing interest rate environments.
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Bankinter SA (BKIMF) noted a temporary impact on quarterly net interest margin due to the rapid repricing of corporate banking books.
Q & A Highlights
Q: Can you provide your plans regarding the ALCO portfolio and confirm if you expect to grow total revenues in 2025? A: We have room to increase the ALCO portfolio within our risk appetite, but it won't be a large figure. We believe we can grow total revenues in 2025 due to a combination of net interest income (NII) and fees, despite potential rate reductions. We expect to compensate rate reductions with growth and reduced deposit costs, maintaining positive income growth. - Jacobo Diaz, CFO