Bankinter's results until September already make the entity predict that 2023 will be a “good year”, according to the bank's CEO, María Dolores Dancausa, in the presentation of the third quarter accounts.. The group has recorded a net profit of 685 million euros, 59% more than in the same period of the previous year, largely due to the effect of the rate increase. However, this rate increase has not yet been generally transferred to the compensation of its clients' liabilities, nor is it in their plans that it will be so in a recent period: “We are not seeing the need,” said Dancausa..
“We do not have a generalized remuneration offer, but occasionally. “We are not seeing the need,” the CEO responded, pointing however to the “range of paid products” that the entity offers to its clients, which include the payroll account, the digital account, deposits in dollars “for profiles more sophisticated” and investment funds that invest in fixed income.
Bankinter feels comfortable with results that show an increase in net profit and also in profitability, which is at its highest levels in the last decade.. Specifically, the return on equity (ROE) increased to 17.1%, six percentage points more than a year ago, while the ROTE return on tangible capital stood at 18.2%..
On the contrary, in the last quarter the entity has registered a rise of nine basis points in delinquencies, up to 2.2%, largely the result of the increase in delinquencies in consumer credit. This business area throws one of lime and another of sand to the company, since on the one hand it registered an investment of 6,400 million euros (25% more than in the first nine months of 2022) but also raised its default rate up to 5.1% (compared to 4.2% a year ago).
Despite this, Dancausa has acknowledged that it is not concerned about the increase in defaults at a general level.. With regard to companies, they claim to have “yet” no sign of deterioration in the portfolio, and with regard to individuals and mortgages, neither. They recognize that there are clients who request changes in the conditions to go from variable rate to fixed rate, but it is not in large volume since in recent years, the majority of new production has been carried out at a fixed rate..
Regarding amortizations, they recognize a volume of about 400 million euros per quarter. “It is not a very high figure,” Dancausa assured..
Risks on the horizon
However, delinquency and the evolution of consumer credit is one of the threats that the bank will monitor closely in the coming months.. But not the only one. “We see that there is a certain slowdown in growth, a drop in exports and investment, family savings are running out and are being replaced by consuming on credit,” the CEO listed.. “Weaknesses” that add to other structural risks of our country, such as “debt at historic highs” or the impact that the conflict in the Middle East can have on the markets and that the bank does not lose sight of.
Internally, Dancausa has not wanted to comment on the country's political panorama or on the negotiations to form a future Government, although he has assured that Spain, “fortunately beyond the politicians, has enormous potential”, with companies “of first”, which belongs to NATO, “which is very important in these times”, and is part of the European Union. “Beyond the politicians, we are in a fantastic country and we all have to push,” he said.
Regarding the banking tax, the CEO hopes that it will not be extended beyond 2024, when it is scheduled to end, because that would generate “legal uncertainty” and would be “very negative news.”. “Next year we are going to have to pay and much more” as income from the interest margin and commissions for this year are taxed, which “has grown a lot” due to the rise in interest rates.
Share buybacks
In the appearance, the board of directors ruled out that the bank plans to make any share repurchases – “we use the surplus capital to grow” – or increase the dividends to be distributed..
Returning to the accounts for the first nine months of the year, Bankinter's interest margin stood at 1,638.7 million euros, which is 53.8% more than a year ago, with a customer margin that has grown up to 3.03% at the end of September. Net commissions amounted to 459.1 million euros, 1.5% more year-on-year.
Retail customer funds reached 78,258 million, which is 2.6% more than 12 months ago, with a reduction in the current account portfolio but, at the same time, with strong growth in term products. New mortgage production amounted to 4.3 billion until September, 17% less than in 2022.