Bankinter (BKT) Q1 2025 earnings summary

Executive summary

• Achieved strong commercial activity in Q1 2025, driving 9% growth in customer volumes, 5% loan book growth, 7% retail deposit growth, and 17% increase in assets under management year-over-year, despite a 6% decline in net interest income.

• Net income reached €270 million, up 35% year-over-year and 22% sequentially, with ROTE at a record 19.9%.

• Maintained best-in-class efficiency and asset quality, with a cost-to-income ratio of 36.7% and NPL ratio of 2.16%.

• Diversified revenue streams and strict cost controls supported profitability.

Financial highlights

• Gross operating income rose 11% year-over-year to €732 million.

• Fee income grew over 13% to €188 million, offsetting net interest income compression.

• Net interest income declined 6% year-over-year to €541 million.

• Pre-provision profit increased 9% to €463 million, with operating expenses up 16% year-over-year.

• Profit before taxes was €378 million, up 16% year-over-year.

Outlook and guidance

• Expect continued mid-single-digit loan book growth across all geographies, with main drivers in mortgages, corporate, and consumer loans.

• NII guidance remains flattish or slightly positive for 2025, with customer margin targeted at 2.7%.

• Fee income expected to grow at high single digits, with total revenues for 2025 above 2024.

• Cost-to-income ratio targeted below 36% for year-end.

• Strategic focus on digital banking expansion and retail client acquisition in Spain, Portugal, and Ireland.