HE Bankinter Group Made a profit of 184.7 million euros in the first quarter of 2023, That’s 19.7% more than the result recorded in the same period of 2022, as reported to the National Securities Market Commission (CNMV) this Thursday.
The entity states that it started 2023 by consolidating its activities in all business lines. in the different geographies in which it operates In this way, it points to “strong growth” across all margins “despite the economic impact of the new tax and a market environment that is not immune to challenges”.
At the end of March, profit before tax was €294.4m, 37.4% more. The bank underlines that it undertook to pay 77 million euros for the new in this first quarter. Tax rate for the financial sector.
About marginsinterest rate reached 522.2 million euros in the first quarter, what does it represent 63.2% growth, especially with customer margin emphasizing the uptrend over the last two quarters.
gross profit margin, amounted to 615.9 million euros on 31 MarchThis represents an increase of 23.3%. Profit before tax at the end of March increased 37.4% to €294.4 million. The bank underlines that it undertook to pay 77 million euros for the new tax rate for the financial sector in this first quarter.
Turning to margins, the bank underlines that the growth was driven by interest increases, increased business volumes and commercial activities in investment products that bring more commissions.
The resulting interest margin 522.2 million euros in the first quarter, This represents a growth of 63.2%. In addition, customer margin continued its upward trend especially in the last two quarters, increasing from 1.82% in the first quarter of 2022 to 2.96% recorded at the end of March this year.
gross profit margin, As of March 31, it increased by 23.3% to 615.9 million euros.and this is despite higher regulatory costs, amounting to 14% of gross margin “with the special weight of the new tax on banks”.
22% of this gross profit margin comes from revenues from service commissions.or 4% more, with particular growth in commissions from activities such as the collections and payments business and securities brokerage, among others, totaling €153 million in these first three months.
Regarding operating margin before provisions, this quarter was €396.3 million, 35.8% with growth in the analyzed period, tAfter absorbing operating expenses, which rose 5.7%, although well below revenue growth.
increased profitability
Bankinter also significant improvements were experienced in the account ratios during the period, beginning to demonstrate the “profitability and efficiency”, asset quality and “strengthened solvency” of the enterprise’s business.
Thus, in the last twelve months, return on equity (ROE) rose to 13.7% from 9.8% a year ago, reaching the highest levels of recent years. A ROTE of 14.5%.
CET1 ‘fully filled’ capital ratio reaches 12.2% for its own shareThis represents a difference of 4.5 percentage points from 7.73%, the minimum required by the European Central Bank (ECB) for Bankinter. The NPL ratio, on the other hand, increased by eight basis points compared to the fourth quarter, but decreased by two basis points compared to a year ago and realized as 2.18%. Coverage for this default increased to 66.5% compared to March 2022, although it remained flat from December. The NPL ratio in Spain was 2.4% at the end of the period.
rproductivity rate increased to 35.7% from 41.6% a year ago, compared to 33.8% in Spain. In terms of liquidity, deposit volume continued to be above the loan volume with 102.6%, and the average liquidity coverage ratio (LCR) for the last twelve months was 198%, above the legal requirements. .
Balance
The group’s total assets closed the quarter at €105,945 million, down 4.4% from a year ago. Customer loan portfolio reached 73,074 million Euros, which indicates an annual increase of 4.9%. Specifically, the growth in loan investment in Spain was 1.7%.
As for individual client funds,n Volume of 74,262 million euros, lor as a result of transferring deposits to other products such as fixed income or mutual funds, means a 1.2% decrease at the end of the year compared to the same data.
Actually, The bank underlines that the assets of these products increased “in a very special way” in the quarter: increased its fixed income assets by 3,100 million and investment funds by 1,500 million.
Business areas
According to their fields of activity, companies operating The biggest contribution to the Group’s revenues was the 2.9% growth in the loan portfolio. With a volume of 30.3 billion euros compared to the figures for the first quarter of 2022. In Spain alone, growth was 1.3%.
HE Volume of ICO lines It reached a withdrawal amount of 5,800 million euros, with a non-performing loan ratio of 4.2%.
In business segments, Bankinter underlines the positive developments in international activity, With an investment volume of 7 billion 600 million Euros, which is 11% higher than the same figure at the end of March 2022.
Managed volume in wealth banking reaches 53,900 million euros6% more than the same figure at the end of March 2022, assets in retail banking reached 42,300 million with a growth of 1,900 million euros, or 5%, compared to a year ago. Between both segments, they add a global capital of €96,200 million at the end of March.
Increase in mortgage production
On the asset side, At the close of the first quarter, the residential mortgage portfolio reached a volume of 34,300 million euros, compared to 32,000 million a year ago. Growth in Spain was 1.9% compared to the same period of 2022.
Thus, the production of new mortgages, including all geographies and brands of the group, increased by 2% compared to the first quarter of the year and reached 1 billion 700 million Euros.
Bank, in Portugal, investment portfolio reached 8,400 million euros, with 17% annual growth, client funds increased by 5% to 6,600 million. Despite all this and the slight increase in expenses, the result before provisions was € 50 million, 159%; and the pre-tax result of this subsidiary is €43 million, representing an increase of 177%.
Bankinter Consumer Finance’s investment portfolio reached 5,700 million Euros, a 50% increase compared to a year ago. Of this portfolio, 2,800 million are consumer loans, which grew 37% over the year, and 1,600 million are mortgages marketed in Ireland under the Avant Money brand. The mortgage portfolio in this country grew by 179% in one year.
Avant Money brand, including mortgages, 2,300 million Euro investment volume, 102% higher than a year ago.
Finally, Evo Banco’s loan investment volume reached €2.967 million at the end of the first quarter, orn 48% above the figures twelve months ago. In the first quarter of 2023 alone, new mortgage production amounted to 299 million euros, up 64% compared to the first quarter of the previous year.