closes 2021 with net profits of 437 million euros, 38% more than a year ago, and exceeds Bloomberg market consensus estimates, which . With the capital gain from Línea Directa (the bank recorded 895 million euros in the first semester due to its IPO) the result reaches 1,333 million euros, compared to the 1,300 estimated by analysts.
The bank remains with this result, 21% below its record net profit, achieved in 2019, even without a pandemic, when it managed to reach 551 million euros. However, unlike then, the entity grouped there the profit of its insurer (), which reported around a quarter of the group’s profits. The entity led by María Dolores Dancausa hopes to recover this level of profit by the end of 2023.
The financial institution has improved revenue not only compared to a year earlier, but also in comparison with the pre-Covid period. Bankinter achieved an interest margin of 1,275 million euros, 2% more than a year ago and up to 9% more than in 2019, thanks to the greater volume of business, boosted above all by the retail segment. Commission income grows to 603 million, 21% more than a year ago and 26% more than in the pre-pandemic era. “Most of these commissions come from activities related to asset management, intermediation and customer advice, all of them highly value-added services,” adds the entity. With these figures, the gross margin stands at 1,855 million , 9% more than in 2021 and 12% more than in 2019.
Regarding expenses, they grow to 853 million, 3% more, an increase that the market was already expecting, on the one hand due to the return to the payment of variable remuneration, which was partially frozen the previous year due to the pandemic, as recommended at the time by the European Central Bank (ECB).
Business evolution
The entity reached a volume of credit investment in the business of companies of 28,700 million, with a growth of the portfolio in Spain of 1% compared to a fall in the sector of 1.4%. The bank’s market share thus goes from 5.3% in 2020 to 5.4% this year.
With regard to the business of individuals, it grew especially in Private Banking and Personal Banking. The assets managed in Private Banking reached 49,900 million euros, compared to 42,800 million in 2020, and with a new net worth captured in the year of 3,600 million. Between 2016 and 2021 Private Banking assets have grown by more than 60%. In Personal Banking it reaches 29,800 million, with a net worth of 2,800 million.
In Commercial Banking, the balance of payroll accounts in Spain reaches 14,900 million, from 12,700 million in 2020. In mortgages, Bankinter closes “one of the best years in its history”, with a new production (including EVO Banco) of 5,900 million euros, 58% higher than last year. The mortgage portfolio amounts to a total of 31,300 million euros. The growth of the mortgage portfolio in Spain is 8.6% compared to 1.3% in the sector. The market share in new operations now amounts to 9%.
As for the Asset Management business, managed resources grew by 26.9% off-balance sheet, up to 39,533.6 million. The investment banking business, which is carried out by Bankinter Investment, has launched a total of 16 investment vehicles in very different economic sectors, mobilizing 3,200 million capital from more than 3,000 private and institutional banking clients. The volume of structured financing amounts to 4,000 million. With all this, the gross margin generated amounted to 187 million euros compared to 116 million last year.
For its part, Bankinter Portugal closed another equally successful year, with a profit before taxes of 50 million euros and growth in all business indicators and in all margins. Bankinter Consumer Finance closes the year with an investment portfolio of 3,500 million euros, which means 23% more than in December 2020, with a new production in the year of 1,500 million that reflects the reactivation of household consumption.
Evo Banco, a 100% digital entity, already has 678,000 customers. Loan investment stands at 1,860 million euros, compared to 1,224 million in 2020. The volume of new mortgages amounted to 729 million euros, compared to 395 million a year ago.
Improve profitability
The return on equity, ROE, excluding the capital gain of Línea Directa, reached 9.6%, with a ROTE of 10.2%, compared to 7.03% ROE in 2020, a year in which this ratio was the higher provisions made to prevent a worsening of the macroeconomic environment after the pandemic.
As for capital, Bankinter maintains a fully loaded CET1 ratio of 12.1%, well above the ECB’s requirements, which are 7.68%.
The non-performing loan ratio, for its part, stands at 2.24%, thirteen basis points less than a year ago, without the end of mortgage moratoriums having made a dent in this figure. The delinquency coverage rate is 63.56%, 302 basis points higher than at the end of 2020.
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