Bankinter kicks off the presentation of the results of the Spanish banking system, in this case for the first quarter of the year. And it does so with an increase in revenue and performance: it earned 154.3 million until March, 4.1% more than in the same period of 2021, as reported Thursday to the CNMV. An increase that was obtained despite no longer having the revenues of the insurance company Línea Directa, an activity that had been included in the first quarter of the previous year (it was segregated at the end of April).
“The entity culminates in a record first quarter, with a result based on recurring banking activity that already exceeds that of the pre-Covid period,” the bank said in a statement. The pre-tax result of the banking business reached € 214.3 million, 33% more than a year ago in comparable terms. And the interest margin rises to 320 million, 2.6% more. Bankinter also underlines that he feels favorable wind: “The recovery path is starting to consolidate”.
The bank explains in the note sent to the CNMV that all account margins have improved compared to the data of the first quarter of 2021. This is a sign of the institution’s ability to compensate for the loss of the contribution of the Línea Directa business with higher banking income. “Bankinter maintains the strong momentum of its commercial activity: the production of new mortgages grows by 25% compared to the first quarter of 2021; 15.6% more customer funds; 7.8% credit investment; and 16.8% of investment funds, “he adds in the statement.
As for the gross margin, the figure stands at 499.5 million, 7.4% more than a year ago. Of these revenues, 64% was generated by the interest margin and 29% by commission income (thus obtaining 147 million, 13% more, the main item was managed savings). “The main management reports reflect the strength of the business: return on equity, ROE, improves to 11.7%; efficiency up to 41.6%; and the ratio of impaired loans is reduced to 2.2% ”, underlines Bankinter. On the solvency side, the CET1 capital ratio fully loaded it stood at 11.9%, above what the ECB required (7.726%).
In this first quarter we do not yet see the havoc that the crisis generated by the war in Ukraine can cause. One of those impacts that banks fear is a significant increase in defaults. However, the body headed by María Dolores Dancausa estimates that delinquency dropped to 2.20% in the first three months of the year.
Total assets amounted to € 110,801.2 million up to March, 9.9% more than in 2021. Investments in customer loans ended the quarter at € 69,679.3 million, up 7.8%. And the operating margin before the end of provisions at 291.9 million, 11% more. “It demonstrates the strength of the bank’s commercial strategy, its projection for the future and its ability to compensate for the lack of Direct Line results with bank revenues,” the note reads.
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The growth in revenues is reflected in all the activities in which the bank is involved. On the part of companies, the volume of credit investments amounted to 29,500 million euros, 5.4% more than in the same period of 2021. “The growth of the portfolio in Spain was 5.2%, compared to of a sectoral decline of 0.4%, with data in February from the Bank of Spain ”, underlines Bankinter. On the part of this international business, the entity achieved a gross margin of more than 16% until March.
In commercial banking, clients with higher net worth stand out. Therefore, private banking increased assets under management by 12% to 50,700 million, with new equity raised in the first three months of the year of 1,700 million.
The mortgage business was another trigger and hit record highs once again. “New business for the quarter reaches 1,600 million euros, including data from EVO and all the geographic areas in which the bank operates,” says Bankinter. In this way, the production of new mortgages grew by 25% compared to the same period of the previous year. And the group’s residential mortgage portfolio reaches 32,000 million euros.
As for the payroll balance, a key product for attracting new customers, in Spain it stood at 15,900 million, 18% more than in March 2021. And in the asset management sector, the volume of resources managed off-balance sheet is was 39,249.3 million, 14.7% more than in March of the previous year. Of course, compared to the previous quarter, the figure is lower “mainly due to the poor performance of the markets”, justifies Bankinter.
In the case of the business in Portugal, the entity also achieved growth in all its indicators: the investment portfolio reached 7,200 million (8% more) and the resources managed off-balance sheet reached 4,200 million (11% more) . “Bankinter Portugal achieves an interest margin and gross margin 8% and 11% higher, respectively, than those of the same period in 2021,” adds the entity. The pre-tax result in the neighboring country is 16 million as of March, 13% more than a year ago.
In addition, EVO Banco achieved a 47% higher credit investment portfolio at the end of the quarter. The new mortgage production was 182 million euros. And it reaches 687,000 customers.