Bankinter (BKT) Q3 2024 earnings summary

Executive summary

• Net profit rose 6.8% year-over-year to €731 million, with pre-tax profit up 7.9% to €1,083 million, driven by business diversification, commercial activity, and robust asset quality.

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

• Return on equity reached 17.1% over the last twelve months, with sector-leading efficiency ratios between 34.6% and 37%.

• Revenue streams diversified, with fee income now contributing 24% of total revenue.

• Maintained strong capital position, with CET1 ratio at 12.6%, exceeding regulatory requirements by 470 basis points.

Financial highlights

• Net interest income increased 5.5% year-over-year to €1,728 million; net fees rose 13.5% to €521 million, supporting a 7% rise in gross operating income to €2,151 million.

• Operating expenses grew 6%, with a cost-to-income ratio between 34.6% and 37%.

• Profit before taxes reached €1,083 million, up 7.9% year-over-year.

• Loan loss provisions totaled €262 million, with cost of risk at 40 basis points.

• Off-balance-sheet managed funds surged 23.3% year-over-year to €54.9 billion.

Outlook and guidance

• Expect continued loan growth across all geographies and business lines, with a focus on business diversification and international expansion.

• 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.

• For 2025, expect to maintain positive operating jaws and cost-to-income ratio between 35–37%.