The result published between January and September is more than five times higher than that accumulated last year, heavily influenced by the covid-19 pandemic, and surpasses previous levels.
In a statement published today by the Spanish National Securities Market Commission (CNMV), the banking group informs that, excluding the capital gain from the non-recurring transaction of `Línea Directa`, the bank obtained a net benefit of 354.9 million.
This benefit can be compared with the profit of 220.1 million euros in the same period in 2020 and 444 million euros in 2019, although the latter includes an extraordinary item of 57 million euros from the acquisition of EVO Banco.
`Línea Directa` was an insurance subsidiary of Bankinter that entered the Madrid stock exchange on April 29, with 82.6% of its capital to be distributed to the group’s shareholders in the second quarter of the year.
Analyzing the evolution of the main ratios, the return on equity, ROE, excluding the capital gain of Línea Directa, was 9.4%, against 7.1% in the third quarter of 2020, the period in which the Bank had to face more severe extraordinary provisions due to the pandemic and the worsening macroeconomic situation.
With regard to capital, Bankinter’s CET1 `fullload` ratio is 12.3%, compared to 11.97% a year ago, and much higher than the 7.68% required by the ECB (European Central Bank) .
The bad debt ratio was 2.40%, 11 basis points better than a year earlier, after the end of mortgage defaults, which had no impact on this item.
Bad debt coverage was 62.75%, also 110 basis points higher than a year earlier.
The results account shows growth in all items, both compared to the same period in 2020 and even compared to 2019.
According to Bankinter, this is reflected, firstly, that the bank is successfully anticipating the path of economic recovery and, in parallel, that it has the diversification and potential to meet its objective requirements of compensating with the banking business, during a period of approximately three years, the results of Línea Directa’s profits.
Bankinter highlights that its branch in Portugal “accelerated its growth” in all its businesses and balance sheet items, with the consequent good performance of margins and profits before tax.
The overall growth of the loan portfolio was 5%, ending the third quarter with a portfolio of 4,900 million euros in commercial banking (+6%) and 2,000 million euros in corporate banking (+5%). Customer resources grew 19% to 5,600 million euros.
This increase in commercial activity led to growth in net interest income (+4%) and, above all, in gross income (+12%), thanks to the good performance of net interest income (+23%).
Profit before provisions was 51 million euros, 21% more than in the same period in 2020.
After making the corresponding provisions, Bankinter Portugal’s profit before tax amounted to 40 million euros, an increase of 24%.