Bankinter: 4Q24 First Take – Net income in line; Fees save quarter

BankinterBankinter

Jefferies | Reported 4Q net income in line with consensus, helped by a low effective tax rate in the quarter (with the print an 11% miss at PBT level). This PBT miss was primarily driven by €34m in other impairments, with pre-prov a 2% beat. Revenues were a 2% beat vs consensus, however this was driven by strong fees (5% beat), with NII dynamics a touch soft, down 3% quarter-on-quarter, slightly below consensus. Costs were also a 2% miss.

Bankinter reported net income of €222m, which was right in line with consensus. However, the print had a number of moving pieces: PBT was 11% below consensus, with pre-prov profits 2% above. Income was a 2% beat and costs were a 2% miss.

NII was a 1% miss versus consensus, down 3% quarter-on-quarter and down 4% year-on-year. Customer margins were down 12bp in 4Q vs 3Q: Loan yields narrowed 19bp versus 3Q24 levels, with the cost of deposits falling 7bp in the quarter.

Net fee income was a 5% beat. Trading income of €13m compares with consensus of €8m. Other income was a €3m beat.

Total costs were 2% higher than consensus.

Total impairment charge (including gains/losses on asset disposals) of €164m compares to consensus of a €121m charge. This includes €34m of other asset impairments. FY24 Cost of risk of 0.39%, at the higher end of the FY24 guidance of 35-40bp. The NPL ratio was 2.11%, stable year-on-year.

Customer loans were in line with consensus and up 2% quarter-on-quarter. Deposits were 1% above consensus and up 1% quarter-on-quarter.

Capital: CET1 ratio of 12.41%, 5bp lower than consensus, with both CET1 and RWAs 1% above consensus.

Last 12m RoTE of 19%.

No formal guidance provided.

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