Bankinter Shines in Q1 2024, Outperforming Last Year’s Expectations and Elevating Solvency Levels

The Spanish banking sector commenced this Thursday with the first financial results for 2024. Bankinter, as is customary, kicked off the year with a strong start and achieved a net profit of €200.8 million from January to March, an 8.7% increase over the same period last year, according to information released by the Comisión Nacional del Mercado de Valores. This marks the best first quarter in Bankinter’s history under the leadership of new CEO Gloria Ortiz.

Investors received these numbers with enthusiasm, resulting in a more than 2% rise in stock prices at midday on Friday in the stock market. It is worth noting that Bankinter achieved an even stronger performance last year, with a net profit of €844.8 million, a 50.8% increase over the same period last year.

Regarding interest margins, Bankinter logged €577.7 million in earnings, up 10.6% from the same quarter last year. In terms of net commissions, there was an advance of 8.5%, bringing them to €165.8 million – both figures are used to calculate tax payments for the sector, which Bankinter will pay between €90 and €100 million in 2024 (based on its figures from last year). It is worth noting that this tax payment is permanent and has been met with opposition from the banking sector since its introduction by the government despite widespread support among economists and investors alike.

Looking at solvency levels, Bankinter remains well above what is required by BCE and ended Q1 with a fully loaded CET1 capital index of 12.46%, which is 36 points above what it had in March 2023.

In conclusion, Bankinter has delivered strong results for Q1 of 2024 thanks to increased revenue, margins and efficiency gains despite some areas facing declines due to economic factors such as rising interest rates and inflationary pressures.

Overall, Bankinter’s success story continues despite challenges faced by both banks and investors worldwide as they navigate through tough economic conditions brought upon by global economic instability caused by geopolitical tensions and trade wars among major economies such as China-US trade war and Brexit uncertainties among others.