Bankinter kicks off the presentation of results for Spanish banks, in this case for the first quarter of the year. And it does so with an increase in income and benefits: it earned 154.3 million until March, 4.1% more than in the same period of 2021, as reported to the CNMV on Thursday. An increase that has been achieved despite no longer having the income of the insurance company Línea Directa, a business that was included in the first quarter of the previous year (it was segregated at the end of April).
“The entity culminates a record first quarter, with a result based on the recurring banking business that already exceeds that of the pre-Covid period,” the bank highlights in a statement. The result before taxes of the banking activity reached 214.3 million, 33% more than a year ago in comparable terms. And the interest margin rises to 320 million, 2.6% more. In addition, Bankinter underlines that they feel tailwinds: “The path of recovery is beginning to consolidate.”
The bank explains in the note sent to the CNMV that all the margins of the account have improved compared to the figures for the first quarter of 2021. This is a sign of the entity’s ability to compensate for the loss of the contribution of the Línea Directa business with higher bank income. “Bankinter maintains the strong momentum of its commercial activity: new mortgage production grows 25% compared to the first quarter of 2021; 15.6% plus customer funds; 7.8% credit investment; and 16.8% investment funds, ”he adds in the statement.
On the part of the gross margin, the figure stands at 499.5 million, 7.4% more than a year ago. Of these revenues, 64% was generated from the interest margin and 29% through commission income (it obtained 147 million in this way, 13% more, the main item being asset management). “The main management ratios reflect the strength of the business: return on equity, ROE, improves to 11.7%; efficiency up to 41.6%; and the non-performing loan ratio is reduced to 2.2%”, underlines Bankinter. On the solvency side, the CET1 capital ratio fully loaded stood at 11.9%, above what the ECB requires (7.726%).
In this first quarter, the havoc that the crisis generated by the war in Ukraine can cause is still not visible. One of those impacts that banks fear is a significant increase in defaults. However, the entity directed by María Dolores Dancausa estimates that delinquency fell to 2.20% in the first three months of the year.
Total assets totaled 110,801.2 million until March, 9.9% more than in 2021. Credit investment to customers closed the quarter at 69,679.3 million, 7.8% higher. And the operating margin before provisions ended at 291.9 million, 11% more. “It proves the soundness of the bank’s commercial strategy, its projection for the future and its ability to compensate with bank income for the absence of Direct Line’s results,” it states in the note.
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More commercial activity
Revenue growth is reflected in all the businesses in which the bank is involved. On the part of companies, the volume of credit investment stood at 29,500 million euros, 5.4% more than in the same period of 2021. “The growth of the portfolio in Spain was 5.2%, compared to a sectoral fall of 0.4%, with data to February from the Bank of Spain”, highlights Bankinter. On the part of this international activity, the entity has achieved a gross margin above 16% until March.
In commercial banking, clients with higher net worth stand out. Thus, private banking increased managed assets by 12% to 50,700 million, with new net assets raised in the first three months of the year of 1,700 million.
The mortgage business has been another of the triggers and has once again reached record levels. “The new production for the quarter reaches 1,600 million euros, including data from EVO and all the geographies in which the bank operates,” says Bankinter. In this way, the new mortgage production rose by 25% compared to the same period of the previous year. And the group’s residential mortgage portfolio reaches 32,000 million euros.
As for the balance of payroll accounts, a key product in attracting new customers, it stood at 15,900 million in Spain, 18% more than until March 2021. And in the asset management business, the volume of resources managed off-balance sheet amounted to 39,249.3 million, 14.7% above March of the previous year. That yes, if it is compared with the past quarter, the figure is lower “due above all to the poor evolution of the markets”, justifies Bankinter.
In the case of the business in Portugal, the entity also achieved growth in all its indicators: the investment portfolio reached 7,200 million (8% more) and the resources managed off-balance sheet reached 4,200 million (11% more). “Bankinter Portugal obtains an interest margin and a gross margin that are 8% and 11% higher, respectively, than those of the same period of 2021”, adds the entity. The result before taxes in the neighboring country is 16 million until March, 13% more than a year ago.
In addition, EVO Banco achieved a 47% higher credit investment portfolio at the end of the quarter. The new mortgage production was 182 million euros. And it reaches 687,000 customers.