The facade of the Bankinter company located in Madrid Author: Europe Press
From April to June, the bank earned 233 million euros, twice as much as last year
Bankinter registered a net profit of 417.9 million euros in the entire first half of the yearwhich is equivalent to a 54% increase compared to the same period in 2022, the bank reported on Thursday when it released its profit and loss account.
The financial institution points out that the increase occurred despite the fact that in the first quarter the bank fully paid the new banking tax, which amounted to EUR 77.5 million.
In this way, Bankinter’s total income (gross margin) between January and June amounted to EUR 1,278 million, which represents an improvement of 33% compared to the beginning of 2022. Taking into account only interest income (interest margin), they increased by 60%, to EUR 1,068 million. Net fee income remained unchanged and amounted to EUR 303 million in the first half of the year.
By business segments of the bank, the area of business banking remained the main one, with total revenue of 569.8 million euros, 68.1% more; while commercial and private banking grew by 46.8%, to 484.4 million euros, and the consumer goods segment amounted to 194 million, 21.4% more.
On the other side, Bankinter Portugal experienced growth of 81.1%, to 147.7 million euros, and here It increased revenue to 30.5 million, up 65.9%. Capital market operations grew by 14.7%, reaching revenues of EUR 136.7 million at the end of the half year.
The operating costs of the entity increased by 6% compared to the previous year, to 452.3 million euros. More specifically, staff costs increased by 5.7%, to 250.5 million, while administrative and depreciation expenses increased to 201.8 million, 5.8% more.
In this way, the operating margin increased by 54.3%, to 825.7 million euros, while the result before taxation was set at 625.2 million euros, 67.2% more than between January and June 2022.
Referring only to the data for the second quarter, Bankinter’s net profit amounted to EUR 233.2 million, twice as much as a year earlier. For its part, revenues rose to 662.1 million euros, 42.9% more.
Profitability and balance sheet
As for other financial metrics, Bankinter noted that return on equity (ROE) was 15.5% at the end of the semester, almost 5.5 points higher than at the end of the same period in 2022. ROTE also saw a big increase, up to 16.44%. This puts the bank in a “privileged position” within the sector, as pointed out.
In terms of solvency, the CET1 capital ratio fully loaded it was 12.25% at the end of the half-year, 40 basis points more than a year earlier. The rate of total capital increased by 113 basis points, to 16.24%.
in the semester, the bank’s non-performing loan rate increased slightly by 11 basis points to 2.22%. However, the company pointed out that the coverage ratio of those failed loans increased by 1.6 percentage points, to 66.3%.
Bank balance as of June 30 registered total assets worth 110,099.4 million euros2.4% more than at the end of the first half of 2022. From this figure, the portfolio of loans to clients grew by almost 3%, to EUR 74,597 million.
The housing mortgage portfolio increased by EUR 34,400 million at the group level at the end of June, 4.9% more. In Spain, Bankinter rose 0.4% in this business, something the bank considers significant given the 2.4% decline in the rest of the sector.
The generation of mortgages in the half-year amounted to EUR 2,900 million, a decrease of 16% compared to the first six months of 2022. Bankinter attributed this decrease to “weaknesses” in the real estate market and rising interest rates.
On the other hand, the assets of natural persons increased by 0.5% compared to the previous year, to EUR 77,958.5 million. In addition, the bank recorded a movement of EUR 10,000 million from demand current accounts to time deposits last year.
In this sense, the wealth managed among Wealth Banking clients, those with the greatest economic potential, amounts to around EUR 55,400 million, 11% more than the figure published a year ago. In business with citizens, which also includes other clients, the assets it manages amount to EUR 44,000 million, 7% more compared to the data from a year ago.
In this regard, Bankinter emphasized the “strength” of the asset management business due to the greater demand from clients for these products. Thus, own investment funds grew by 15.1%; third-party funds account for 14.5%; for 7.7% plus pension funds; while the business of asset management and sikavac remains stable on an annual basis, with a slight decrease of 0.2%.
Source: La Vozde Galicia
I am Jason Root, author with 24 Instant News. I specialize in the Economy section, and have been writing for this sector for the past three years. My work focuses on the latest economic developments around the world and how these developments impact businesses and people’s lives. I also write about current trends in economics, business strategies and investments.
