Bankinter (BKT) Q3 2024 earnings summary

Executive summary

• Net profit rose 7% year-on-year to €731 million, driven by organic business expansion, diversified income, and robust asset quality and efficiency ratios.

• Business volumes increased 9% year-on-year to €215 billion, with strong growth in loans, retail deposits, and off-balance sheet assets.

• Maintained sector-leading efficiency with a cost-to-income ratio between 34.6% and 37%, and NPL ratio at 2.2%.

• Return on equity reached 17% over the last twelve months.

• Revenue diversification and international expansion, with Portugal and Ireland contributing significantly to growth.

Financial highlights

• Net interest income increased 5.5% year-on-year to €1,728 million; net fees rose nearly 14% to €521 million, supporting a 7% rise in gross operating income to €2,151 million.

• Operating expenses grew 6%, maintaining a cost-to-income ratio of 34.6%–37%.

• Profit before taxes reached €1,083 million, up 8% year-on-year.

• Off-balance sheet managed funds surged 23% year-on-year.

• NPL ratio at 2.2% (Spain: 2.6%), coverage ratio at 69%.

Outlook and guidance

• Expect continued loan growth across all geographies and business lines, aiming for single-digit lending growth for the year.

• NII growth target remains mid-single digit, but may land at the lower end if rates decline rapidly.

• Upgraded fee income guidance to low to mid-teens growth for the year.

• Cost growth expected at mid-single digit, likely at the higher end; cost of risk to remain within 35–40 basis points.

• Focus on business diversification, international expansion, and maintaining efficiency leadership.