1Q Financial Summary
March 2025
Summary
Economic and financial environment | 3 |
Financial highlights | 4 |
Introduction | 5 |
Balance sheet | 8 |
Customer funds | 9 |
Customer lending | 10 |
Asset quality | 11 |
Income statements | 12 |
Fee income | 14 |
Accumulative yields & costs | 16 |
Contribution by customer segment | 18 |
Solvency | 19 |
Shareholders' equity | 20 |
Shareholders' value | 21 |
People | 23 |
Quarterly events | 24 |
1Q | Financial Summary |
Economic and financial environment
The latest GDP data available are still from the fourth quarter of 2024 and therefore do not yet reflect the impact of Trump's measures on the economy. What they do show is a narrowing of the growth gap between the United States and Europe.
The main event in the first quarter of 2025 was surely Donald Trump's return to office and his new administration. His arrival has resulted in notable shifts in the geostrategic area and on the trade front, leading to an environment of greater uncertainty The following aspects have been at the top of Trump's agenda early in his term: (i) Imposing tariffs on imports, not only from China, but also from its main trading partners (Europe, Canada, Mexico, etc.); (ii) demanding higher defence spending from other NATO members, up to the threshold of 2% of GDP, and even raising this minimum requirement to 5% of GDP; and (iii) bringing Russia and Ukraine closer together, towards a potential peace agreement.
The latest GDP data available are still from the fourth quarter of 2024 and therefore do not yet reflect the impact of Trump's measures on the economy. What they do show is a narrowing of the growth gap between the United States and Europe. While the world's leading economy slowed to +2.5% growth in Q4 (YoY), down from +2.7% previously, the Eurozone's economy picked up to +1.2% in Q4 (YoY) from +1.0% previously, led mainly by Spain (+3.4% in Q4) and Portugal (+2.8%). However, leading indicators on economic activity point to an economic slowdown in the first quarter of 2025, especially in the United States. This appears to be the case with Consumer Confidence, Empire Manufacturing, Philadelphia Fed Activity Index. In fact, some indices such as the one compiled by the Atlanta Fed (GDP Now) point to a contraction of US GDP in 1Q 2025, largely due to the deterioration of the trade balance, due to imports being rushed into the country ahead of the possible tariff hikes.
Inflation has continued to retreat on both sides of the Atlantic, falling to +2.4% in the United States (March; YoY; preliminary) from +2.9% in December; and to +2.2% in the Eurozone (March; YoY; preliminary). However, core inflation is somewhat higher and proving to be more stubborn: +2.8% in the United States and 2.4% in the Eurozone.
Looking at central banks, we have seen a decoupling of monetary policies and a widening of the interest rate gap between the United States and Europe. The Fed has opted to pause its process of rate cuts, which have remained unchanged in the 4.25%/4.50% range since December, amid robust growth and still high inflation. Meanwhile, the ECB has continued to cut rates, with inflation close to the 2% target and low economic growth. It dropped them by -50 bp in the first quarter of 2025 to 2.50%/2.65% (Deposit/Credit) following its March meeting.
This geographical decorrelation has also fed through to stock and bonds. While US bond yields have dipped (T-Note -33 bp to 4.21%), European bonds have rallied, led by the German Bund (+37 bp to 2.74%), in view of the expected increase in public deficit, amid higher defence spending and following the approval of a €500 billion 10-year infrastructure plan in Germany.
As for the stock markets, US markets have shed 5%, following a downgrade of corporate earnings estimates for 2025 (-4% March vs. December), coupled with an environment of greater political uncertainty and higher-for-longer interest rates. Europe, however, was up 8%, thanks largely to lower perceived risk on the geopolitical front, in the hope of a peace agreement between Russia and Ukraine and following elections in Germany and France. The Spanish Ibex35 outperformed, rising 14% in the first quarter of the year, led mainly by banks.
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1Q | Financial Summary |
Financial highlights
Var. | ||||
Thousand Euros | 31/03/25 | 31/03/24 | € | % |
BALANCE SHEET | ||||
Total assets | 123,851,262 | 112,938,254 | 10,913,009 | 9.66 |
Customer credit | 80,763,845 | 77,040,977 | 3,722,867 | 4.83 |
Total customer funds | 158,038,042 | 140,063,945 | 17,974,097 | 12.83 |
On-balance sheet | 98,965,003 | 89,582,138 | 9,382,864 | 10.47 |
Retail deposits | 84,469,123 | 78,750,001 | 5,719,123 | 7.26 |
Wholesale deposits | 12,839,480 | 9,265,196 | 3,574,284 | 38.58 |
AUMs: Off-balance sheet managed funds | 59,073,040 | 50,481,807 | 8,591,233 | 17.02 |
Equity | 6,046,586 | 5,432,814 | 613,772 | 11.30 |
RESULTS | ||||
Net interest income | 540,714 | 577,686 | -36,972 | -6.40 |
Net fees & comissions | 188,069 | 165,761 | 22,308 | 13.46 |
Gross operating income | 731,682 | 658,656 | 73,026 | 11.09 |
Pre-provision profit | 462,741 | 426,419 | 36,322 | 8.52 |
Profit before taxes | 378,424 | 326,685 | 51,739 | 15.84 |
Net income | 270,135 | 200,803 | 69,332 | 34.53 |
RATIOS | ||||
Non-performing loans | 2.16% | 2.23% | -0.07% | -3.31 |
Coverage ratio | 68.77% | 64.11% | 4.66% | 7.27 |
Cost of risk | 0.32% | 0.39% | -0.07% | -17.95 |
Cost-to-income | 36.76% | 35.26% | 1.50% | 4.25 |
ROE | 18.79% | 17.36% | 1.43% | 8.24 |
ROTE | 19.94% | 18.42% | 1.53% | 8.31 |
RORWA | 2.38% | 2.28% | 0.10% | 4.39 |
ROA | 0.86% | 0.80% | 0.06% | 7.50 |
CET1 | 12.35% | 12.46% | -0.11% | -0.89 |
CET1 requirement | 7.94% | 7.83% | 0.11% | 1.35 |
MREL (%TREA) | 25.44% | 23.20% | 2.24% | 9.67 |
Leverage ratio | 5.07% | 5.08% | -0.02% | -0.39 |
LTD | 95.24% | 97.12% | -1.88% | -1.94 |
LCR (12m average) | 180.02% | 212.46% | -32.44% | -15.27 |
HQLA's (in million of €) | 18.767 | 19.904 | -1.137 | -5.71 |
BANKINTER SHARE | ||||
Number of shares | 898,866,154 | 898,866,154 | 0 | 0.00 |
Last share price (€) | 10.25 | 6.78 | 3.47 | 51.11 |
EPS (€) | 0.29 | 0.21 | 0.08 | 39.10 |
DPS (€) | 0.12 | 0.11 | 0.01 | 12.27 |
BRANCHES & BUSINESS UNITS | ||||
Branches | 447 | 446 | 1 | 0.22 |
Other business units | ||||
Large Corporates | 25 | 25 | 0 | 0.00 |
Mid-corporate & SME | 78 | 77 | 1 | 1.30 |
Private banking | 48 | 48 | 0 | 0.00 |
Virtual branches | 389 | 378 | 11 | 2.91 |
Independent financial agents | 354 | 359 | -5 | -1.39 |
WORKFORCE | ||||
Employees | 6,674 | 6,562 | 112 | 1.71 |
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1Q | Financial Summary |
Introduction
The cost-to-income ratio was an impressive 36.76%, among the best in the sector. The ratio, together with the NPL ratio, is a key indicator in times of uncertainty.
Bankinter Group has got off to a strong start in 2025 on the back of its commercial strategy, with improvements across all its businesses and across all the countries and regions in which it operates in the first quarter, thus consolidating a steady trend of profitable and increasingly diversified growth. As a result, the Group's key indicators performed strongly during the period, including profitability, the NPL ratio and the cost-to-income ratio, where Bankinter continues to lead the sector.
More precisely, Bankinter Group achieved a pre-tax profit of 378.4 million euros in the first quarter of 2025, up 15.8% on the same period of the previous year, while net profit stood at 270.1 million euros, up 34.5% year on year.
In terms of the various management ratios, return on equity (ROE) improved to 18.8%, compared to 17.4% a year earlier, with ROTE of 19.9%, both ratios among the best in the sector in both Spain and Europe.
The phased-in CET1 ratio stood at 12.35%, well above the ECB's minimum requirement of 7.94% for Bankinter.
The NPL ratio improved by seven basis points from a year ago to reach 2.16%, below the average among Spanish and European banks.
The cost-to-income ratio was an impressive 36.76%, among the best in the sector. The ratio, together with the NPL ratio, is a key indicator in times of uncertainty.
Liquidity also remains at optimal levels. Meanwhile, the loan-to-deposit ratio stood at 105%.
Key balance sheet figures
The Group's total assets at 31 March 2025 amounted to 123,851 million euros, 9.7% more than in the same period of 2024.
Customer credit amounted to 80,764 million euros, up 4.8% year on year.
Total customer funds grew dynamically by 12.8% to reach 158,038 million euros. Of these, retail funds stood at 84,469 million euros (+7.3%). Off-balance sheet managed funds (own and third-party mutual funds managed and distributed by the Bank, pension funds, wealth management, and alternative investment) continued the strong upward trend seen in the previous year to reach 59,073 million euros at 31 March, 17% more than a year earlier.
Key income statement figures
Bankinter Group generated strong growth in revenues during the period from its business-as-usual customer activities. This is due to a diversified commercial strategy that is highly focused on value-added products and services, offering a greater return for the customer and also for the Bank through fees and commissions.
This growth offset the pressure on net interest income caused by downward interest rate pressures, which, despite the growth in lending, was 6.4% lower than in the first quarter of 2024 and 1.7% lower than in the fourth quarter, at 541 million euros.
This strategic focus, together with the bank's commercial drive and ongoing efforts to diversify its markets, brought gross operating income-which includes all revenues-to 732 million euros in the first quarter, up 11.1% year on year.
This result was achieved thanks to a strong performance by fee and commission income earned on the various services provided by the Bank to its customers, which amounted to 234 million euros in the quarter, 9.8% more than in the same period of 2024. This notably included fees earned from Asset Management and Brokerage of 124 million euros (+15% YoY). Further highlights included the income earned from the transactional business, which amounted to 94 million euros (+1.4%).
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1Q | Financial Summary |
Bankinter's excellent results are down
to a strategy of geographical diversification, focusing on high- value segments, and a unique commercial proposition.
As a result, net fee and commission income (the difference between the income collected and that paid by the Bank to members of the Agents Network or Partner Banking) came to 188 million euros, an impressive 13.5% higher than in the same period of 2024.
Pre-provision profit was 8.5% higher at 463 million euros, after absorbing operating expenses of 269 million euros, higher than those incurred a year earlier.
In 2025, the aim is to have similar quarterly expenditures in absolute terms, so as to avoid heavy concentrations of expenditure in the latter half of the year, as used to happen in previous years, largely due to the weight of the variable incentives obtained owing to the excellent results achieved. Therefore, the costs for the first quarter of 2025 have been modulated accordingly and are only 2.3% above the quarterly average for 2024; a very moderate figure, albeit higher than that reported in the first quarter of 2024, and still allowing for an outstanding cost-to- income ratio of 36.76%.
A strategy of sustainable and profitable growth
Bankinter's excellent results are down to a strategy of geographical diversification, focusing on high-value segments, and a unique commercial proposition which, in this competitive environment, continues to attract new customers while increasing the loyalty of existing customers. All of this consolidates an ongoing trend of sustainable and profitable growth. This strategy has led to a 9% increase in customer business volumes to reach 224,000 million euros, including the loan book, retail deposits and assets under management.
As part of this strategy, Spain remains by far the largest market in terms of activity for Bankinter Group. Including EVO, the Group's balance sheet in Spain features 67,000 million euros in the loan book (+5%); 77,000 million euros in retail deposits (+7%); and 127,000 million in assets under management and assets under custody (+16%). Bankinter Spain's pre-tax profit amounted to 312 million euros (+15%).
The second most important geographical area for the Group is Portugal, where Bankinter continues to impress across all headings of the income statement. Looking at the balance sheet, growth was particularly strong in customer funds, climbing 19% to 9,000 million euros. Assets under management and assets under custody also reached the same level, growing 12%. Meanwhile, investment came to 10,000 million euros, up 1%. Portugal's pre-tax profit is 56 million euros, marking an increase of 19%.
In Portugal, highlights include a strong performance by Universo, a project launched by the bank alongside Sonae in December 2023 and targeting the consumer credit market; a joint venture that is investing heavily in technology to enhance the customer experience, with enticing growth expected in the medium term.
Similar growth prospects are forecast for the Group's business in Ireland, following its transformation from a purely consumer-focused operation into a full bank branch. The bank already manages a loan book of around 4,000 million euros in the country, 23% higher than in the first quarter of 2024, with an NPL ratio of just 0.3%. Of this portfolio, 3,000 million euros relates to mortgages (+24%), and the rest to the consumer business (+15%). Profit before tax amounted to 11 million euros in the quarter, up 18% year on year.
The fact that these two countries together account for 18% of the Group's pre-tax profit is a clear indication of how well they are faring.
Looking more closely at the business lines, Commercial Banking, which encompasses all activity relating to individual customers, made the biggest contribution to gross operating income. The bank's customer wealth ended the quarter at 133,000 million euros, up 11% on the same date in 2024.
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1Q | Financial Summary |
There was notable growth in new mortgage production in the first quarter of the year, to reach 1,650 million euros, 31% higher than in the same period of 2024.
Of this total figure, 74,000 million euros related to Wealth Management clients, compared with 68,000 million euros a year earlier. This segment encompasses the Bank's high net worth business, where Bankinter maintains a distinct value proposition, designed to meet all of its customers' needs and investments in a comprehensive manner.
The other segment, Retail Banking, reported 59,000 million euros in customer wealth, 12.5% more than a year ago.
In Commercial Banking, the Asset Management business outperformed once again, following an already very successful 2024. Within this segment, mutual funds continued to play a prominent role. Assets in own mutual funds amounted to 16,623 million euros, up 19.1% year on year, with a further 24,758 million euros in third-party mutual funds (+16.7%). There was also notable growth of 25.7% in Wealth Management, which totalled 8,173 million euros, and 5,121 million euros was channelled into alternative investments, where the Bank happens to be one of the largest players operating in the market.
Meanwhile, the volume of fixed income and equity portfolios in the Bank's custody stood at 76,566 million euros (+14.2%).
The bank's stellar range of salary accounts and digital accounts also outperformed during the period. The former have been consistently outstanding in terms of the interest they pay, among other attractive terms and conditions, while the latter offer an array of highly innovative features. The number of such accounts now stands at 736,000, 7% more than a year ago.
On the lending side of the business, there was notable growth in new mortgage production in the first quarter of the year, to reach 1,650 million euros, 31% higher than in the same period of 2024, and bringing Bankinter's market share to 7% in Spain, 6% in Ireland and 6% in Portugal. Bankinter Group's total mortgage portfolio at 31 March 2025 stood at 37,100 million euros, 6% higher than in March 2024.
Meanwhile, Bankinter's other main area for the business and customers, namely Corporate & SME banking, continued to post consistently strong results, with a loan portfolio of 35,000 million euros, up 5% year on year, showcasing the bank's firm commitment to supporting the productive industry and business community. Looking solely at Spain, Bankinter reported 6% growth in its loan book, while the wider sector delivered a flat performance, according to Bank of Spain data as of February.
Last but not least, the Bankinter share fared remarkably well during the period, having increased in value by 51.1% between 31 March 2024 and 31 March 2025.
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1Q | Financial Summary |
Balance sheet
Var. | Var. | ||||||
Thousand Euros | 31/03/25 | 31/03/24 | € | % 31/12/2024 | € | % | |
ASSETS |
Cash, at central banks and other demand deposits
Financial assets held for trading
Financial assets at fair value through other comprehensive income
Non-trading financial assets mandatorily at fair value through profit or loss
Assets at amortised cost
Debt securities
Loans & advances
Credit institutions
Customers
Derivatives - hedge accounting
Investments in subsidiaries, joint ventures and associates
11,564,316 | 9,881,362 | 1,682,954 | 17.03 | 15,417,808 | -3,853,492 | -24.99 |
4,649,826 | 4,680,486 | -30,660 | -0.66 | 3,372,005 | 1,277,822 | 37.90 |
1,012,687 | 1,083,458 | -70,771 | -6.53 | 918,429 | 94,258 | 10.26 |
272,722 | 179,030 | 93,692 | 52.33 | 281,391 | -8,669 | -3.08 |
103,765,393 | 94,725,974 | 9,039,419 | 9.54 | 99,383,287 | 4,382,106 | 4.41 |
14,140,470 | 11,302,419 | 2,838,051 | 25.11 | 14,226,418 | -85,948 | -0.60 |
89,624,922 | 83,423,555 | 6,201,367 | 7.43 | 85,156,869 | 4,468,054 | 5.25 |
11,931,431 | 9,133,557 | 2,797,874 | 30.63 | 8,096,539 | 3,834,892 | 47.36 |
77,693,491 | 74,289,998 | 3,403,493 | 4.58 | 77,060,329 | 633,162 | 0.82 |
493,335 | 437,535 | 55,801 | 12.75 | 524,645 | -31,309 | -5.97 |
254,125 | 241,600 | 12,526 | 5.18 | 244,605 | 9,520 | 3.89 |
Tangible assets
Intangible assets
Tax assets and other assets
Non-current assets and disposal groups classified as held for sale
446,237 | 427,390 | 18,848 | 4.41 | 446,639 | -402 | -0.09 |
317,719 | 300,032 | 17,687 | 5.89 | 320,446 | -2,728 | -0.85 |
913,785 | 800,921 | 112,864 | 14.09 | 898,045 | 15,740 | 1.75 |
161,117 | 180,467 | -19,350 | -10.72 | 164,523 | -3,406 | -2.07 |
TOTAL ASSETS | 123,851,262 | 112,938,254 | 10,913,009 | 9.66 | 121,971,823 | 1,879,440 | 1.54 |
LIABILITIES | |||||||
Financial liabilities held for trading | 1,562,880 | 4,147,062 | -2,584,182 | -62.31 | 3,419,667 | -1,856,788 | -54.30 |
Financial liabilities at amortized costs | 114,425,509 | 101,595,506 | 12,830,003 | 12.63 | 110,942,549 | 3,482,960 | 3.14 |
Deposits | 101,935,044 | 91,123,095 | 10,811,949 | 11.87 | 99,471,397 | 2,463,647 | 2.48 |
Central banks | 277,393 | 0 | 277,393 | -- | 0 | 277,393 | - |
Credit institutions | 11,260,649 | 11,052,355 | 208,294 | 1.88 | 13,162,693 | -1,902,044 | -14.45 |
Customers | 90,397,003 | 80,070,741 | 10,326,263 | 12.90 | 86,308,705 | 4,088,298 | 4.74 |
Debt securities issued | 9,279,878 | 8,033,557 | 1,246,321 | 15.51 | 8,975,934 | 303,944 | 3.39 |
Other financial liabilities | 3,210,587 | 2,438,853 | 771,733 | 31.64 | 2,495,218 | 715,369 | 28.67 |
Derivatives - hedge accounting | 263,443 | 468,766 | -205,323 | -43.80 | 480,654 | -217,211 | -45.19 |
Provisions | 305,073 | 333,762 | -28,688 | -8.60 | 333,840 | -28,767 | -8.62 |
Tax liabilities and other liabilities | 1,247,772 | 960,344 | 287,428 | 29.93 | 917,448 | 330,324 | 36.00 |
TOTAL LIABILITIES | 117,804,676 | 107,505,440 | 10,299,237 | 9.58 | 116,094,158 | 1,710,518 | 1.47 |
Shareholders' Equity | 6,057,247 | 5,534,034 | 523,214 | 9.45 | 5,908,327 | 148,920 | 2.52 |
Accumulated other comprehensive income | -10,661 | -101,219 | 90,558 | -89.47 | -30,663 | 20,002 | -65.23 |
Total equity | 6,046,586 | 5,432,814 | 613,772 | 11.30 | 5,877,665 | 168,921 | 2.87 |
TOTAL EQUITY AND LIABILITIES | 123,851,262 | 112,938,254 | 10,913,009 | 9.66 | 121,971,823 | 1,879,440 | 1.54 |
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1Q | Financial Summary |
Customer funds
Var. | ||||
Thousand Euros | 31/03/25 | 31/03/24 | € | % |
RETAIL FUNDS | 84,469,123 | 78,750,001 | 5,719,123 | 7.26 |
Government entities | 1,890,957 | 1,615,848 | 275,108 | 17.03 |
Private sector | 78,793,960 | 74,499,403 | 4,294,557 | 5.76 |
Sight accounts | 56,881,871 | 53,146,559 | 3,735,312 | 7.03 |
Term deposits | 21,701,753 | 21,055,731 | 646,022 | 3.07 |
Valuation adjustments | 210,336 | 297,113 | -86,777 | -29.21 |
Other sight deposits | 951,998 | 589,359 | 362,639 | 61.53 |
Retail commercial paper | 2,832,208 | 2,045,390 | 786,818 | 38.47 |
REPURCHASE AGREEMENTS (REPOS) | 1,656,400 | 1,566,942 | 89,458 | 5.71 |
WHOLESALE FUNDING | 12,839,480 | 9,265,196 | 3,574,284 | 38.58 |
Institutional deposits | 6,947,826 | 3,958,153 | 2,989,673 | - |
Securitised bonds | 80,472 | 99,612 | -19,140 | -19.21 |
Covered bonds | 1,752,430 | 2,743,085 | -990,655 | -36.11 |
Senior bonds | 3,990,823 | 2,494,708 | 1,496,115 | 59.97 |
Valuation adjustments | 67,929 | -30,362 | 98,291 | -323.73 |
TOTAL ON-BALANCE SHEET FUNDS | 98,965,003 | 89,582,138 | 9,382,864 | 10.47 |
Var. | ||||
Thousand Euros | 31/03/25 | 31/03/24 | € | % |
AUMs: OFF-BALANCE SHEET FUNDS | ||||
Mutual funds with third parties | 24,758,078 | 21,217,466 | 3,540,612 | 16.69 |
Mutual funds | 16,623,018 | 13,960,140 | 2,662,878 | 19.07 |
Pension funds and insurance contracts | 4,397,631 | 4,145,010 | 252,621 | 6.09 |
Wealth management | 8,173,017 | 6,500,488 | 1,672,529 | 25.73 |
Alternative Investment funds | 5,121,296 | 4,658,703 | 462,593 | 9.93 |
TOTAL AUMS | 59,073,040 | 50,481,807 | 8,591,233 | 17.02 |
Var. | ||||
Thousand Euros | 31/03/25 | 31/03/24 | € | % |
AUCs: OFF-BALANCE SHEET CUSTODY SECURITIES | ||||
Equity securities | 51,223,348 | 43,348,291 | 7,875,057 | 18.17 |
Fixed income securities | 25,342,846 | 23,703,447 | 1,639,399 | 6.92 |
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1Q | Financial Summary |
Customer lending
Var. | ||||
Thousand Euros | 31/03/25 | 31/03/24 | € | % |
GOVERNMENT ENTITIES | 1,585,845 | 1,990,562 | -404,717 | -20.33 |
PRIVATE SECTOR | 76,107,646 | 72,299,436 | 3,808,211 | 5.27 |
Commercial bills | 3,235,278 | 3,169,576 | 65,702 | 2.07 |
Secured loans | 42,838,945 | 40,260,457 | 2,578,488 | 6.40 |
Other credit facilities | 25,483,142 | 24,354,426 | 1,128,716 | 4.63 |
Personal loans | 17,057,107 | 15,807,872 | 1,249,235 | 7.90 |
Credit lines | 8,261,057 | 8,397,752 | -136,695 | -1.63 |
Other term lending | 164,978 | 148,802 | 16,176 | 10.87 |
Leasing | 558,919 | 604,405 | -45,486 | -7.53 |
Non-performing loans | 1,924,322 | 1,895,145 | 29,177 | 1.54 |
Loan loss allowances | -707,179 | -694,456 | -12,723 | 1.83 |
Other credits | 2,774,219 | 2,709,883 | 64,336 | 2.37 |
LOANS AND ADVANCES - CUSTOMERS | 77,693,491 | 74,289,998 | 3,403,493 | 4.58 |
Other customer assets at amortised cost | 3,070,353 | 2,750,979 | 319,374 | 11.61 |
TOTAL | 80,763,845 | 77,040,977 | 3,722,867 | 4.83 |
OFF-BALANCE SHEET RISKS | ||||
Contingent risks | 8,378,992 | 7,865,110 | 513,882 | 6.53 |
Undisbursed amounts | 18,360,632 | 16,267,085 | 2,093,547 | 12.87 |
TOTAL | 26,739,625 | 24,132,196 | 2,607,429 | 10.80 |
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