Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Mortgages drive recovery in Bankinter's lending income

Stock MarketsJan 20, 2022 04:36AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. FILE PHOTO: A Bankinter logo is displayed on a wall in Madrid, Spain, March 17, 2016. REUTERS/Andrea Comas/File Photo

By Jesús Aguado

MADRID (Reuters) -A rise in lending thanks to new mortgages drove a recovery in financial margins at Spain's Bankinter's in the fourth quarter, although net profit fell on one-off charges.

Net interest income (NII), earnings on loans minus deposit costs, rose 0.1% year-on-year to 320.2 million euros ($363.8 million), the bank said on Thursday.

That beat the 319 million euros forecast by analysts and was 1.4% higher than the third quarter.

For the whole of 2021, NII grew 2.3%, in line with the bank's guidance for low-single digit growth. Chief financial officer Jacobo Diaz also guided for low-single digit growth this year.

Banks across Europe are under growing pressure from rising bad debts and record low interest rates, which is driving lenders to look for other areas of growth, such as commissions generated in private banking.

Brokers Keefe, Bruyette welcomed the "overall solid quarter from Bankinter, with good growth in loan activity and fees."

In 2021, Bankinter's lending book grew 5.7%, boosted by a 58% rise in new mortgage loans.

Shares in Bankinter fell 0.2%, having risen almost 14% so far this year up to Wednesday's close. Spain's blue-chip index Ibex-35 had gained just 0.7% in the same period.

Bankinter's net profit fell 15% to 82.5 million euros ($93.7 million) in the October-to-December period due to charges related to its contribution to national funds that protects bank deposits and the loss of income following the listing of its insurance business LDA in April. Analysts had expected a quarterly profit of 60 million euros.

However, net profit was still below the 106 million euros recorded in the fourth quarter of 2019, before the outbreak of the COVID-19 pandemic.

In 2021, Bankinter reported net profit of 1.33 billion euros compared to 317 million in 2020, boosted by 896 million euros of capital gains from the listing of LDA.

($1 = 0.8583 euros)

Mortgages drive recovery in Bankinter's lending income

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email