Bankinter closed the first nine months of the year with a profit that was more than five times that of the same period last year, due to the capital gains generated by the IPO of Línea Directa. The entity recorded a net profit as of September 30 of 1,250.6 million euros, including the 895.7 million after taxes generated with the placement on the market of its insurance subsidiary.
In the third quarter alone, net profit amounted to 110.35 million, which represents a 0.5% drop compared to the same period in 2020, when it earned 110.864 million. The benefit between July and September is also below the 135 million it obtained in the same period of 2019, before the pandemic. The Stock Exchange has received the accounts with falls of 4.5% for the action, despite the fact that the result for the quarter is above the 94.5 million that, on average, the Bloomberg analysts expected.
The CEO of the bank, María Dolores Dancausa, has relativized this fall and has declared in the presentation of results for the quarter that she has "full faith" that the bank will reach 9 euros per share "in the medium term" in the face of higher punishment to the 5% that suffers today in the Stock Market after presenting results and that places it on the verge of 5 euros.
The banker ratified the bank's forecast of "reaching 550 million profits after record taxes that we achieved in 2019" at the end of the 2023 financial year, and without Direct Line. In that maximum amount of 2019, the insurer added 100 million to the account, according to the bank's financial director, Jacobo Díaz. Dancausa said he had "very clear" the "value of the bank" with the diversification of the sources of income obtained and assured that "all of them have a long way to go", claiming that Bankinter is also "the most efficient bank" and continues to work to improve this heading in those countries where its rate is "somewhat worse". "We are full of projects and, therefore, , I believe very much in that future of Bankinter", he explained, to add that "there are so many factors that influence the ups and downs" that it makes no sense to look at it permanently. "I would like the stock to rise when we present such good results, but, of course, that is not in my hands," she added, convinced that today's adjustment is an "excessive punishment" and that "when , the results have explained that action "in the medium term"
Excluding the capital gains from Línea Directa, the recurring profit from January to September stood at 354.9 million euros, 61.3% more than the 220.1 million in the same period of 2020 and still below the 444 million euros same period of 2019. The latter included an extraordinary point of 57 million from the acquisition operation of EVO Banco.
Registration Closes TODAY at 2 pm EST. Goal Setting Masterclass for Millennials and late Genzers (Young Professiona… https://t.co/ezmFwxjVv3
— Dr. Nicole Rankine Sun Jan 17 13:58:11 +0000 2021
The gross margin accumulated between January and September stood at 1,422.9 million euros, 9.8% more than in 2020 and above the 1,239.5 in 2019. Commissions represented net income of 443 million euros, representing 31% of the gross margin.
The interest margin reached 955.1 million euros, 3% higher than in the same period of 2020 and also exceeds the 858.5 of 2019. From July to September the interest margin was 315 million, in line with what expected.
Regarding capital, Bankinter maintains a fully loaded CET1 ratio of 12.3%, compared to 11.97% a year ago, and much higher in any case than the 7.68% required by the ECB.
As for the NPL ratio, it stands at 2.40%, improving by 11 basis points that of a year ago. The end of the mortgage moratoriums, explains Bankinter, "has not had any impact on this heading."
Its return (ROE) stands at 9.4%, very close to 10% of the cost of capital.
Bankinter does not plan to change its strategy at all, which it has been defending for so many years. Rejects a merger, and carry out adjustments with office closures and staff cuts. He considers that maintaining employment is essential for a company.
As for the extraordinary capital gain obtained by putting Línea Directa at market value for its IPO, the banker ruled out that it could be used to make purchases. "We do not plan to make any acquisitions, we are doing well in the countries in which we are operating," explained Dancausa. Bankinter operates in Portugal, Ireland and Luxembourg, as well as in Spain. Regarding Ireland, he explained that the mortgage business launched is seeing its fruits, in Spain he assured that the bank "has a long way to go" after having diversified its sources of income and, although he admitted that the consumer business is more penalized by the crisis and pandemic , was convinced that "next year is going to give us great joy".
