Bankinter, S.A. (BKIMF) Q1 2025 Earnings Call Transcript

2025-04-24 15:59:28 ET

Bankinter, S.A. (BKIMF)

Q1 2025 Earnings Conference Call

April 25, 2025 03:00 AM ET

Company Participants

Laurie Shepard - Investor Relations

Gloria Ortiz - Chief Executive Officer

Jacobo Diaz - Chief Financial Officer

Conference Call Participants

Francisco Riquel - Alantra

Sofie Peterzens - JPMorgan

Alvaro Serrano - Morgan Stanley

Maks Mishyn - JB Capital

Britta Schmidt - Autonomous Research

Carlos Peixoto - CaixaBank BPI

Ignacio Ulargui - BNP Paribas

Marta Sanchez - Citi

Ignacio Cerezo - UBS

Cecilia Romero - Barclays

Presentation

Laurie Shepard

Good morning. This is Laurie Shepard from the Bankinter Investor Relations team. Thank you all for joining us for this first quarter earnings presentation. Financial statements were posted with market authorities earlier this morning and all materials can also be found on our corporate website.

On the call today, we are joined by Bankinter's, Chief Executive Officer, Gloria Ortiz; and Chief Financial Officer, Jacobo Diaz. Please refer to the disclaimer in the presentation and note that this call is being recorded.

I will now turn over to Gloria to review highlights for the quarter. Jacobo will then talk through the financial results and performance of our business segments across the group, before handing back to Gloria to close the presentation.

Gloria Ortiz

Thank you, Laurie and good morning to everyone on the call. Bankinter initiated 2025 with significant commercial activity resulting in higher volumes across all its businesses and regions. We continue to consolidate a trend of increased profitability and strength through the diversification of revenue sources segments and business products and services. This strength in commercial activity is reflected with solid growth of all customer volumes, increasing 9% in total with our loan book, up 5%, retail deposits 7% and assets under management increasing 17%.

As our strategic focus is to deliver innovative products and services that add value to our customers like our wealth management services for example, we have been able to maintain high fee growth levels above 13%, partially offsetting interest rate compression leading to the impressive achievement of an 11% increase in revenues this quarter compared to the first quarter of last year.

Supporting these strong growth trends and the underlying aspects of – the underlying aspects of both our risk quality and strict cost controls both very essential to maintaining high levels of profitability through all types of economic cycles. This quarter, we reported €270 million in net income, which is 22% increase compared to the last quarter and an even higher 35%, when compared to a year ago, resulting in a return on tangible equity or ROTE at an all-time high of 19.9%.

Now let's look more into the details behind these results. First with volumes on Page 6. As you can see, customer volume growth is well-diversified between types and geographies. Customer volumes grew €18 billion or 9% this past 12 months reaching the current sum of €224 billion. Our more mature businesses have reached high single-digit growth, Spain 9% and Portugal 8% with Ireland delivering an impressive 23% increase in volumes....

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