Bankinter, the Spanish bank that has seen its profits increase by 8.7% compared to the same period last year, is leading the way in the banking sector as it kicks off 2024 with its first round of results. The bank’s CEO, Gloria Ortiz, has achieved record first quarter performance thanks to improvements across all business lines and markets. Investors have responded positively to the news, with the stock price rising more than 2% mid-morning on the market.
Despite concerns about slower growth in credit portfolio volumes compared to last year, there are signs that profitability is increasing across the sector. The increase in interest rates set by the ECB in mid-2022 has led to record profits in 2023 and confidence remains high for 2024.
Bankinter reported a 10.6% increase in interest margin and an 8.5% increase in net commissions, which will be used to calculate an estimated extraordinary tax payment of between 90 and 100 million euros for the bank in 2024. Despite inflation pressures, Bankinter’s gross margin increased by 7%, resulting in improvements in efficiency and profitability metrics. Delinquency remains low, and defaults that were expected after the rate increase have not materialized. The bank’s solvency is well above ECB requirements, with a CET1 capital ratio reaching 12.46% at the end of Q1.
In addition to its strong performance in Spain, Bankinter has expanded its presence in Portugal and seen growth in loan portfolio and profits there as well as improvement EVO Banco digital brand figures contributing significantly to gross margin despite decrease new mortgage production residential mortgage portfolio continues grow group assets customer loan portfolio retail customer resources have all increased compared
