Bankinter has been the first Spanish bank to publish its results. The bank´s shares have risen a modest 0.11% despite the good evolution of its business in the first nine months of the year. In this period profits increased by 7%, its ROE increased to 13.0 and its non- performing assets improved to 3.2%.
Bankinter secured net profits of 403.6 million euros in the first nine months of 2018, which represents an increase of 7.3% compared the the gains of 376 million euros achieved in the same period of the year before.
The ROE, or returns on the capital invested by the bank, is at 13%, while the capital ratio CET fully loaded improved 24% in the year so far and closed September at 11.7%, far above the regulatory requirements established for Bankinter in 2018 by the ECB.
Bankinter indicated that the quality of its assets continues in a positive dynamic, with a ratio non-performing assets which has improved to 3.2%, which amounts to 52 base points less than the same date a year ago, and 5 base points than the previous quarter. As far as business only in Spain, non-performing assets were 2.92%, less than half the average for the sector.
Other figures for the bank to be highlighted: pre-tax profits of 552.9 million euros up to September, a 6.8% increase. Also the portfolio of property assets has continued to reduce, albeit at a slower rate than its competitors, reaching a gross value of 366.1 million euros compared to 470.8 million euros a year ago, and with a coverage of 45.2%. This is one of the reasons why the ratings agency Moody´s confirmed its long term solvency rating for Bankinter at Baa1 at the beginning of October. Above all, the agency improved its expectations for the bank from “stable” to “positive”, which means it could be considering upgrading its short term rating for the bank.
Moreover, Bankinter recently announced an agreement with the fund Apollo to buy the Spanish banking business of Evo Banco and its consumer credit subsidiary in Ireland, Avantcard, for a figure which has still not been fixed but which would probably be less than the 99 million which the bank gave as the impact on capital.
The bank is listed at the most demanding PER in the Spanish banking sector: 12 times profits compared to 8 times for Santander, 7 for BBVA or 10 for Caixabank.
