Jefferies | Fourth quarter 2025 results are in line with forecasts, but we believe that the slight decline in net interest income will be the main topic of discussion today. The cost of deposits remained virtually stable during the quarter, thanks to the great success of the digital account promotions carried out during the fourth quarter of 2025, with a new campaign announced in January. We believe this raises questions about how far deposit costs can fall. Volumes continued to perform well.
Bankinter announced net income of €278 million in Q4 2025, broadly in line with forecasts. Pre-tax profit was also in line with forecasts, with a 2% increase in profit before provisions. Both revenue and costs slightly exceeded forecasts. For the first time, the presentation also includes a slide on AI, suggesting that the C:I ratio could be further reduced (from the current 36.1%) by 2030.
• Net interest margin was in line with forecasts, with a 1% quarter-on-quarter increase and a 4% year-on-year increase. Customer margins narrowed by 5 basis points in the fourth quarter compared to the third quarter, with loan yields down by around 5 basis points and deposit costs virtually stable over the quarter. This is explained by the great success of the digital account campaigns carried out throughout the fourth quarter of 2025 (+€5 billion in digital accounts in fiscal year 2025). The ALCO portfolio increased by €100 million in the quarter.
• Net fee income exceeded forecasts by 2%. Trading income amounted to €12 million, compared with a forecast of €10 million.
• Total costs were 1% below forecasts.
• Total impairment charge (including gains/losses on disposal of assets) amounted to €119 million, compared to forecasts of €107 million. The cost of risk for fiscal year 2025 was 0.33%.
• Loans to customers were 1% below consensus, with a 2% quarter-on-quarter increase (and 5% year-on-year, in line with previous forecasts). Deposits were 1% above consensus and increased by 1% quarter-on-quarter.
• Capital: CET1 ratio of 12.7%, in line with consensus, with CET1 1% above but risk-weighted assets (RWA) 1% higher.
• RoTE for 2025 of 20.0%.
• No formal forecasts were provided.
