María Dolores Dancausa, CEO of Bankinter, assured in a press conference of the presentation of the results of the third quarter, that the Spanish bank has no interest in buying the New Bank after 2021. Likewise it removes any interest in the EuroBic that is already for sale .
The Spanish bank also revealed that it has 546 million mortgage credit default in Spain in September (922 million in June) and 14 million consumer credit default (it was 55 million in June). This means 2% of the total mortgage loan portfolio and 1% of the consumer loan portfolio.
Moratoriums in Portugal weigh more against Spain, according to the bank. One billion euros, or 15% of the total portfolio in Portugal, 600 million are mortgage loans and weigh 14% and 400 million are loans to companies and account for 18% of the total segment.
With regard to Bankinter Portugal, credit grew. The branch in Portugal gave an additional 8% credit compared to the same period last year, for a total of 6,5 billion euros. In commercial retail banking the value is 4,6 billion euros, or an annual growth of 5% and in corporate banking the increase was 16%, totaling 1,9 billion euros.
Customer resources in Portugal fell 1% in a year to 4,7 billion, of which 3,5 billion are off-balance sheet resources (-2% annually).
At Bankinter as a whole, in consolidated terms, the increase in credit in one year (including Evo Bank) was 6,7% to 63,3 billion, and in corporate banking the increase was 12% to 27,9 billion euros.
Still in consolidated terms, the Bankinter Group saw customer resources rise 9,6% to 62,6 billion.
In the profit and loss account, Bankinter in Portugal announced growth in all items in the profit and loss account: plus 10% in interest margin, plus 11% in gross margin and a margin before provisions that grows 60%, also supported by the containment of costs, which decrease 8%. However, in the period under review, Bankinter Portugal made provisions in the amount of 8 million euros in order to prevent the impact of macroeconomic deterioration, which, together with the fact that the institution has stopped releasing provisions, as occurred in previous years , translates into a pre-tax result that decreases 36%, reaching 33 million euros.
In turn, the Bankinter Consumer Finance business, which operates in Spain, Portugal and Ireland, is affected by a generalized reduction in household consumption, as a result of months of confinement and distrust in the face of the economic situation, which led to a 21% reduction in new credit production compared to the same period in 2019. Even so, the loan portfolio grew 4% over the same period, reaching 2.900 million euros, with an NPL ratio of 8,2% . It is worth mentioning the good performance of Avantcard in Ireland, which this quarter extended its activity to the mortgage business under the Avant Money brand.
Bankinter bank's profit fell 50% to 220 million in the third quarter compared to the same period last year, thanks to the constitution of extraordinary provisions of 243,5 million euros, to prevent the economic crisis caused by the Covid-19 pandemic. Total credit and other provisions totaled 297,9 million.
The Bankinter Group's profitability dropped to 7,09%.
Bankinter in Spain is one of the banks with the best quality of the loan portfolio mirrored in the low NPL (Non Performing Loans) ratio, and in September it reached 2,51% below the 2,73% in September last year. The bank reported the sale of problematic assets, until September, with a book value of 65 million euros, for 41 million, which translated into an average discount on the sale of assets of 37% (percentage of loss recorded in the income statement) . When questioned, Bankinter said that in this portfolio of assets sold, there are neither NPL portfolios nor real estate in Portugal.