Bankinter Sa · BME:BKT

Bankinter Sa — Q1 2025 Earnings Presentation

41 slides from Bankinter Sa's earnings presentation, Apr 25, 2025

  1. Slide 1: Earnings Presentation Q1 2025

    Earnings Presentation Q12025 24 April 2025 1

  2. Slide 2: Agenda

    AGENDA /01 /02 Highlights Results & Solvency /03 /04 Geographies & Closing Businesses Remarks 2

  3. Slide 3: Disclaimer

    Disclaimer Similarly, Bankinter advises that this presentation may contain forward-looking statements, regarding the business evolution and results of the entity. While these statements represent our opinion and future expectations, various risks, uncertainties and other important factors may cause

  4. Slide 4: Highlights

    /01 Highlights 4

  5. Slide 5: Promising start of the year: Net Income €270 Million, ROTE 19,9%

    Highlights .1 Promising start of the year Strong commercial activity, reflected in solid volume and fee growth vs 1Q24 +9% CUSTOMER VOLUMES1 Growing customer volumes +5% +7% +17% LOAN BOOK RETAIL DEPOSITS AUMs vs 1Q24 +11% GROSS OPERATING MARGIN Increasing revenues -6% +13% NII NET FEES 1Q25 Preserv

  6. Slide 6: Volume growth across the board, spanning all geographies +€18Bn

    .1 01. Highlights +9% Volume growth across the board, spanning all geographies +€18Bn vs mar-24 Customer Volumes1 By Volume Type € billion € billion +9% / €18Bn Loan Book +5% / €3,7Bn 77 80 81 221 224 206 mar-24 dec-24 mar-25 Retail Deposits +7% / €5,7Bn mar-24 dec-24 mar-25 By Geography % of custom

  7. Slide 7: Gross income up 73 million euros, reflecting an 11% increase

    Highlights .1 01. Gross income up 73 million euros, reflecting an 11% increase Driven by strong fee performance and absence of the bank levy Gross operating income “Core” revenues € million € million -2% +11% / +€73M Relevant income differences: 743 729 +€22M 732 Net Fees 659 -€37M 166 188 NII +€95M

  8. Slide 8: Preserving asset quality

    Highlights .1 03. Preserving asset quality Through well-balanced growth, with 68% of new loans backed by real guarantees Loan Book Growth Asset Quality1 % of loan book growth NPL Ratio, last sector data +€3,7Bn / +5% vs mar-24 3,3% 2% 2,5% 2,4% 30% 40% 1,3% 1,0% 13% 15% 0,3% Credit Cards Spain Portu

  9. Slide 9: Optimizing efficiency ratios, and reaching all-time-high profitability levels

    Highlights .1 Optimizing efficiency ratios, and reaching all-time-high profitability levels Cost-to-income ratio ROE 19,9% 12-month periods 12-month periods ROTE European Peers1 Cost-to-Income ratio: 47,8% 4º quartile 18,8% out of +100 European SIs 42,3% 17,9% 1st quartile 17,1% out of +100 37,2% Eu

  10. Slide 10: Results & Solvency

    /02 Results & Solvency 10

  11. Slide 11: Profit & Loss Summary

    Results & Solvency .2 Profit & Loss Summary Bankinter Group € million 1Q25 4Q24 Dif. € Dif. % 1Q24 Dif. € Dif.% Net Interest Income (NII) 541 550 -9 -2% 578 -37 -6% Net fees & commissions 188 196 -8 -4% 166 +22 +13% Other income / expenses 3 4 -1 -29% -85 +88 n.a. Gross Operating Income 732 750 -18

  12. Slide 12: Net Interest Income

    Results & Solvency .2 Net Interest Income Quarterly evolution Customer Margin & NIM € million In % -1,7% 4,38 4,41 4,33 vs 4Q24 4,14 3,95 2,98 3,01 2,86 2,74 2,71 2,10 2,06 1,92 1,87 1,84 578 583 568 550 541 Δ 1,47 1,40 1,40 1,40 Δ 1,24 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q25 Customer cred

  13. Slide 13: Sovereign bond portfolio continues to support NII

    Results & Solvency .2 Sovereign bond portfolio continues to support NII Difference HTC FV Total ALCO Portfolio Size as of mar.25 vs mar.24 € billion 20,00 +23% Amount (€Bn) 13,6 0,5 14,1 +2,6 18,00 vs mar-24 16,00 Duration (years) 5,1 1,8 5,0 +0,3 14,00 12,00 Avg. maturity (years) 9,8 1,8 9,5 +1,0 1

  14. Slide 14: Robust fee income, supported by diversified growth streams

    .2 Results & Solvency +13% Robust fee income, supported by diversified growth streams Net fees vs 1Q24 Net fees Gross fees received € million € million in bar, % vs 1Q24 % Fees Management & 124 +15% 53% Brokerage Transactional 94 +4% 196 40% 188 176 179 166 Insurance 16 +7% 7% 1Q24 2Q24 3Q24 4Q24 1Q

  15. Slide 15: Other Income / Expenses

    Results & Solvency .2 Other Income / Expenses Bankinter Group € million 1Q25 1Q24 Dif. € Dif. % Equity method 10 5 +5 +92% Trade Income/losses & Dividends 16 24 -8 -32% Banking levy 0 -95 +95 n.a. Other operational income/taxes -23 -19 -4 +25% Total 3 -85 +88 n.a. 15

  16. Slide 16: Improving efficiency, with cost normalization across quarters this year

    Results & Solvency .2 Improving efficiency, with cost normalization across quarters this year Operating expenses quarterly evolution € million +2% / +€6M vs 2024 quarterly average €248M €263M 2023 quarterly average 2024 quarterly average 269 220 232 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 Opera

  17. Slide 17: Distribution of operating expenses

    Results & Solvency .2 02. Distribution of operating expenses Geography Type % vs 1Q24, € million % vs 1Q24, € million +17% +19% +5% +8% 30 13 22 89 €269M €269M +15% +23% 226 158 Spain Portugal Ireland Personnel Expenses Admin Expenses Amortization 17

  18. Slide 18: Cost of risk & other provisions

    Results & Solvency .2 Cost of risk & other provisions Credit Risk Other Provisions as % of total risk1 end of period, columns in € million as % of total risk1 end of period, columns in € million 0,60% 0,60% 240 240 0,50% 0,50% 190 190 0,39% 0,40% 0,40% 140 0,32% 140 0,30% 0,30% 90 90 0,20% 0,20% 40

  19. Slide 19: Net income

    Results & Solvency .2 Net income Profit before taxes Net income € million € million +16% +35% vs 1Q24 vs 1Q24 389 367 378 327 277 273 258 270 201 222 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q25 19

  20. Slide 20: Strong credit quality maintained across all segments and geographies

    Results & Solvency .2 Strong credit quality maintained across all segments and geographies Significantly below industry averages Non-performing loans & coverage ratio Non-performing loans (NPL) ratio € billion and % +1,5% NPLs, compares to +5% eligible credit exposures vs mar-24 Bankinter Bankinter

  21. Slide 21: Solid liquidity metrics

    Results & Solvency .2 02. Solid liquidity metrics Liquidity gap Wholesale funding maturities € billion € million 0 -2,7 -2 -4,8 -4,8 -4 -6 3.750 mar-24 dec-24 mar-25 1.632 Loan to Deposits 1.100 949 0 0 In % 2025 2026 2027 2028 2029 ≥2030 97,1% 94,7% 95,2% HQLAs 12M average €18,8Bn Liquid Assets €30

  22. Slide 22: Capital & Solvency

    2025 Results & Solvency Pillar II (P2R) .2 Capital & Solvency Capital Requirement 1,30% 4th lowest out of 110 European entities CET1 ratio CET1 % 12,35% 12,41 0,29 12,49 Buffer +4,41% 12,35 -0,18 -0,03 Regulatory Min. 7,94% +11bps organic generation -0,14 Leverage ratio 5,1% Total Capital Ratio 16,1

  23. Slide 23: Geographies & Businesses

    /03 Geographies & Businesses 23

  24. Slide 24: All geographies with strong performance, increasing volumes and results

    Geographies & Businesses .3 03. All geographies with strong performance, increasing volumes and results Customer Volumes1 Profit before taxes % of customer volumes, % difference vs mar-24 % of total, % difference vs 1Q24 +18% +23% 2% +8% +19% 10% 3% 15% +15% +9% 82% 88% Spain Portugal Ireland Spain

  25. Slide 25: Spain

    Geographies & Businesses .3 03. Spain Business KPIs P&L € million 1Q25 1Q24 Dif. % €67Bn Net Interest Income 442 487 -9% Loan Book +5% YoY Net Fees 167 146 +14% Retail Banking Corp & SME Banking €34Bn +5% €31Bn +6% Other Income / Expenses 6 -82 n.a. €77Bn Gross operating Income 615 550 +12% Retail d

  26. Slide 26: Portugal

    Geografies & Businesses .3 Portugal Business KPIs P&L € million 1Q25 1Q24 Dif. % €10Bn Net Interest Income 72 67 +7% Loan Book +9%1 YoY Net Fees 19 18 +9% Retail Banking Corp & SME Banking €6,9Bn +10% €3,3Bn +4%1 Other Income / Expenses -1 -1 -9% €9Bn Gross operating Income 90 83 +7% Customer deposi

  27. Slide 27: Ireland

    Geographies & Businesses .3 Ireland Business KPIs P&L € million 1Q25 1Q24 Dif. % Net Interest Income 27 24 +11% €4,0Bn Loan Book +23% YoY Net Fees 2 2 +4% Mortgage Book Consumer Credit Other Income / Expenses -2 -2 +35% €3,0Bn +24% €1,0Bn +15% Gross operating Income 27 25 +9% +4% Operating costs -13

  28. Slide 28: Corporate & SME banking, growing significantly above the sector

    Geographies & Businesses .3 Corporate & SME banking, growing significantly above the sector Loan book International Business segment size & growth (Spain) € billion New Origination Loan Book +5% % of origination in period % of loans, w/ % increase of loan book mar-25 vs mar-24 vs mar-24 39% +14% 32%

  29. Slide 29: Wealth Management, affluent client profiles driving ongoing growth +€4Bn

    Geographies & Businesses .3 Wealth Management, affluent client profiles driving ongoing growth +€4Bn Incremental wealth Customer wealth1 evolution in 2025 € billion +€2Bn +€2Bn Net New Market Money Effect +11% 129 133 120 57 59 52 68 72 74 mar-24 dec-24 mar-25 Private Banking Retail Banking 1 Custom

  30. Slide 30: Wealth Management: AUMs & AUCs €136Bn

    Geographies & Businesses .3 03. Wealth Management: AUMs & AUCs €136Bn +€18Bn / +15% AUMs & AUCs vs mar-24 Customer Off-Balance Sheet AUMs Customer Off-Balance Sheet AUCs € billion € billion ~60bps ~8bps fees p.a. fees p.a. 77 73 vs mar-24 vs mar-24 67 58 59 25 25 +7% 50 24 +17% 33 34 29 48 51 +18% 4

  31. Slide 31: Retail Banking

    Geographies & Businesses .3 Retail Banking Salary & 100% Digital accounts New Mortgage Origination Mortgage Back Book Thousand of accounts € billion € billion Market Share Spain +3% Sector 4 +1,2% Spain1 Portugal2 Ireland3 7% 6% 6% ,1 +7% Portugal +9% Sector2 +3,5% ~80% Ireland +24% Fixed / +31% +6%

  32. Slide 32: Closing Remarks

    /04 Closing Remarks 32

  33. Slide 33: Growth catalysts: execution of strategic projects

    Closing Remarks .4 Growth catalysts: execution of strategic projects Strategy Ambitions 1 Spain Adopting a new approach to ❖ Drive retail client acquisition, expanding the franchise through promote digital banking, with 100% digital channels products & servicies the integration of EVO 2 Ireland ❖ In

  34. Slide 34: Long-term value creation, increasing Profitability and Shareholder Remuneration

    Closing Remarks .4 Long-term value creation, increasing Profitability and Shareholder Remuneration Tangible Book Value, Net Income Dividends approved in the period ROE € million € per share Last 12M +22% 5,2% 19,9% +46% Dividend ROTE yield +12% +35% 18,8% 6,49 17,9% 0,12 5,82 0,11 17,1% 5,32 0,09 27

  35. Slide 35: 1Q25 summary of volumes, results, ratios and value

    Closing Remarks .4 1Q25 Volumes vs. mar-24 Results vs. 1Q24 Gross Operating Pre-Provision Net Income Loan Book Retail deposits AUMs Income Profit €81Bn €84Bn €59Bn €732M €463M €270M +5% +7% +17% +11% +9% +35% NII Fees -6% +13% Ratios Value Cost-to-income Tangible Book Dividend Yield CET1 NPL Ratio R

  36. Slide 36: Appendix

    Appendix /01 /02 Results MREL /03 /04 Businesses Glossary 36

  37. Slide 37: A.1 Deposit structure

    Appendix A.1 Deposit structure 73% Maturing 2Q25 Deposit Mix Shift Deposit maturity profile Quarterly evolution avg. 12M Euribor, Deposits 100% staked bar chart 100% stacked bar, representing % of fixed term customer deposits and indexed sight deposits Rate sensitive: 37% of Total 100% Deposits 8% 4

  38. Slide 38: A.1 ALCO Portfolio

    Appendix A1. A.1 ALCO Portfolio ALCO breakdown (as of mar-25) Maturities (as of mar-25) In % € million 9.804 13% 24% 14,1Bn€ 62% 1.681 854 911 397 427 Spanish Sovereign Other Sovereign Other 2025 2026 2027 2028 2029 ≥2030 38

  39. Slide 39: A.2 Minimum Requirement for own funds and Eligible Liabilities

    Appendix A.2 Minimum Requirement for own funds and Eligible Liabilities MREL ratio % RWAs (TREA) 25,44% 23,20% 2,89% 1,38% 5,10% 6,42% 20,31% + CBR1 December 2024 Subordination Subordination 2,60% 2,27% Requirement 21,82% 22,55% 1,65% 1,51% 12,46% 12,35% mar-24 mar-25 CET1 AT1 Tier 2 Senior non-pref

  40. Slide 40: A.3 AUMs: Well diversified asset classes

    Appendix A.3 03. AUMs: Well diversified asset classes Customer Off-Balance Sheet AUMs Mutual and pension funds diversification € billion %, mar-25 +17% vs mar-24 Alternative Investment and others; 17% Equities; 58 59 24% 50 Monetary funds; 8% Mixed; Fixed income; 22% 30% mar-24 dec-24 mar-25 40

  41. Slide 41: A.4 Glossary - Acronyms

    A.4 Glossary - Acronyms Concept Definition ALCO Asset–Liability Committee RWAs Risk weighted assets AUCs Assets under custody AUMs Assets under management BoS / BoP Bank of Spain / Bank of Portugal, Central banks from Spain and Portugal respectively BKT Bankinter EPS Earnings per share CET1 Common E

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