Bankinter (BKT) Q4 2024 earnings summary

Executive summary

• Achieved record net income of €953 million in 2024, up 13% year-over-year, driven by diversified organic growth and strong commercial activity across Spain, Portugal, and Ireland.

• Customer volumes grew 9% year-over-year, with loan book up 4%, deposits up 5%, and assets under management up 22%.

• Maintained best-in-class cost-to-income ratio at 36% and strong risk profile with NPL ratio at 2.1%.

• ROE reached up to 18% for 2024, with business volumes and market share gains in all core geographies.

• Fee income rose 15% year-over-year, now contributing 24% of gross income, supported by strong wealth management and brokerage activity.

Financial highlights

• Net interest income increased 3% year-over-year to €2,278 million, with customer margins averaging 281 bps.

• Gross operating income grew 9% to €2,901 million; pre-provision profit up 11% to €1,848 million.

• Operating expenses grew 6%, below revenue growth, supporting efficiency gains.

• Loan loss provisions stable at 39 bps cost of risk, with coverage ratio at a record 69%.

• Dividend yield at 6.7% and tangible book value per share up 11% year-over-year.

Outlook and guidance

• Expect continued loan book growth in all geographies, targeting mid-single digit growth in 2025.

• Net interest income expected to be flat or slightly positive in 2025, with customer margins around 2.7%.

• Fee income targeted for high single-digit growth, with revenue growth supported by volume and fee drivers.

• Cost-to-income ratio to remain between 35%-36%, with costs growing low to mid-single digit.

• Cost of risk expected in the low range of 35-40 bps for 2025.