Bankinter (BKT) Q1 2025 earnings summary

Executive summary

• Achieved strong, diversified growth across all business lines and geographies in Q1 2025, with customer volumes up 9%, retail deposits up 7%, assets under management up 17%, and net income reaching €270.1 million, up 34.5% year-over-year.

• Profitability improved with ROTE at 19.9% and ROE at 18.8%, both record highs and above European averages.

• Cost-to-income ratio improved to 36.7%, among the best in Europe, supported by strict cost controls and operating efficiency.

• Maintained best-in-class asset quality with NPL ratio at 2.16% and coverage ratio up to 69%.

• CET1 ratio at 12.35%, well above regulatory minimums.

Financial highlights

• Gross operating income rose 11% year-over-year to €732 million, with net fees and commissions up 13% to €188 million.

• Net interest income declined 6.4% year-over-year to €541 million due to rate pressures, but fee income and other revenues offset this.

• Pre-provision profit increased 8.5% to €463 million; profit before taxes was €378 million, up 16% year-over-year.

• Cost of risk dropped to 32 basis points, below the 35-40 bps target range.

• Customer business volumes increased to €224 billion, consolidating sustainable and profitable growth.

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, with similar quarterly expenditures to avoid back-loaded costs.

• Aim to exceed €1 billion net income in 2025, supported by digital expansion and geographic growth.