Covid-19 has already been left behind for banks. This 2021 is being the one of the recovery of the pre-Covid figures for financial institutions, although now the concern is focused on when and how far the delinquency will reach. For now, the numbers do not stop improving, as evidenced by Bankinter’s results up to the third quarter.
The benefit of the group led by Maria Dolores Dancausa reached 1,250.6 million euros until September. An unusual figure for the entity since it includes the capital gain generated by the listing of Línea Directa, which is already out of the bank’s orbit. This operation has had a positive impact of 895.7 million after taxes.
Excluding this capital gain, the recurring profit stood at 354.9 million euros, within which are included the four months of income generated by the insurer while it was in the bank’s perimeter until it was able to fly alone as of April. «This profit compares with the 220.1 million in the same period of 2020 and with the 444 million for the same period of 2019, although the latter contain an extraordinary entry of 57 million from the acquisition of EVO Banco, ”the bank reported.
Although delinquency is now focusing the efforts of entities to try to anticipate the impact, for the moment it continues to be very contained. The Bank of Spain also asks banks for caution, considering an arrival in the coming months of this deterioration of assets. The NPL ratio stood at 2.40%, improving by 11 basis points from a year ago, “and all this after the end of the mortgage moratoriums, a circumstance that has not produced any impact on this heading.” Coverage of this delinquency is 62.75%, also 110 basis points higher year-on-year.
Beyond it, Bankinter notes the improvement in the economic situation compared to previous quarters due to the increase in its margins. It is also for this reason that the bank maintains that “it has the necessary diversification and potential to meet its demanding objectives of compensating with the banking business, in a period of approximately three years, the absence of benefits from Línea Directa.”
Net interest income reached 955.1 million euros, 3% higher than in the same period in 2020. Gross margin reached 1,422.9 million euros, 9.8% more, and commissions represented net income of 443 million, representing 31% of said gross margin.
In terms of profitability, the ROE was 9.4%, compared to 7.1% a year earlier. A remarkable figure in the current times that negative rates banks are experiencing and under great pressure from supervisors to get more out of the balance sheet. It should be noted, in this sense, that Bankinter is the only one of the large banks that has not made personnel adjustments during Covid-19. With regard to capital, Bankinter maintains a ‘fully loaded’ CET1 ratio at 12.3%, compared to 11.97% a year ago.
All of this translates into the entity having sufficient vigor to return to prepandemic shareholder remuneration. «The optimal situation of the bank in terms of solvency, profitability and asset quality, endorsed by the stress tests carried out by the European Banking Authority (EBA), in which Bankinter was the Spanish bank with the least impact in the stressed scenario and the third with the least impact in Europe, have allowed the entity to resume its traditional shareholder remuneration policy from October 1, of a ‘pay out’ of 50%», Said the bank.