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 growth across all business lines and geographies.

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

• Maintained best-in-class efficiency with a cost-to-income ratio of 36% and strong risk profile (NPL ratio 2.1%).

• ROE reached up to 18% for 2024, with ROTE at 17.9%.

• Continued investment in technology, digital transformation, and ESG initiatives.

Financial highlights

• Net interest income rose 3% to €2,278 million; net fees increased 15% to €717 million year-over-year.

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

• Cost-to-income ratio improved to 36%, among the best in the sector.

• CET1 fully loaded at 12.4%, 440 bps above minimum requirements; LCR at 188%.

• Dividend yield at 6.7%, with DPS up 14% to €0.51.

Outlook and guidance

• Expect mid-single digit loan book growth in 2025 across all geographies and business lines.

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

• High single-digit fee growth anticipated, with continued investment in technology and franchise expansion.

• Cost-to-income ratio expected to remain between 35%-36%, and cost of risk to finish 2025 in the low range of 35-40 bps.

• Anticipate new record figures in gross income, efficiency, and net income for 2025.