In 2015 the Bankinter Group obtained their highest profits to date, predominantly deriving from return customers. The return on equity (ROE) was placed at a high point in the sector, at 10.9%. And all this ocurred when the bank was maintaining its traditional competitive edge in terms of quality assets and solvency level.
Those results were underpinned by an improvement of all the margins, particularly significant in the businesses in which the bank has been investing its efforts over the last few financial years. In some cases it has been traditional businesses (Private or Business Banking), whilst others have been bolstered most recently ( Personal Banking and, above all, Financing of Consumption).
In the commercial sphere, the encouraging performance of some financial products that generate a greater entailment with the customer, such as mortgages and salary accounts, were of particular note.
Here are the most outstanding data of the year:
Profits. In 2015 the Group obtained a net profit of 375.9 million euros, and gross profit of 520.3 million euros, which amounted to increases of 36.3% and of 32.5%, respectively, when compared to the previous year.
Non-performing loans. At the close of 2015 this was at a rate of 4.1% as opposed to 4.7% one year earlier, less than half of the sector average (10.3% in November). The gross value of the portfolio of foreclosed assets was 531.3 million euros, denoting a 9.3% decrease and 40.1% coverage.
Solvency. The capital ratio (CET1 fully loaded) was at 11.6%, one the highest in the Spanish banking system and well above regulatory demands.
Liquidity. The ratio of deposits over loans went up from 78.3% to 83.5%, with a liquidity gap of 8,500 million euros, two billion less than in 2014. Maturities of wholesale issuances pending until 2019 totalled four billion euros. To honour these, the bank had liquid assets valued at 9,100 million euros and a bond issuing capacity valued at 5,100 million euros.
Net interest income. Despite the low interest rate environment at present , it rose by 15.1%, reaching 869.5 million euros, supported by larger volumes and by a reduction in capital costs. The net interest income of the last quarter was +2.5% higher than that of the previous quarter; and +5.1% above the same period in 2014.
Gross income. It rose to 1,568.8 million euros, a +8.3% increase, which was above all due to the positive performance of fees, whose net amount grew by 6.3% with respect to the previous financial year. Businesses such as equities and asset management had a favourable performance, despite the downturn of the markets in the last half. Off-balance sheet resources not only increased by 24.7% in volume, but they did so to a large extent thanks to products that provide greater added value for the customer and greater returns for the bank.
Pre-provision profit margin. It totalled 807.8 million euros on 31st of December, 10.7% more than on the same date in 2014. The rise in expenses to cover the costs of implementing new lines of business and of optimising technological systems did not prevent the efficiency ratio of the banking division with repayments being optimised for the fifth consecutive year, until standing at 43.7%.
Total assets. They rose to 58,659.8 million euros, a+2.3%. increase. The total volume of credit to customers was 44,182.6 million, with a net increase of 4.1%, unlike what occurred in the sector as a whole, which highlights the bank's firm response to the demand for financing from families and companies.
Funds under management. They experienced remarkable growth, which was 17.8% to be specific, and reached 65,317.5 million euros. Retail resources rose by 14.2%, and off balance sheet managed resources (investment funds, pension funds and wealth management) did so by 24.7%.
Private Banking. 5,500 million euros of new net assets were gained and the total volume managed reached 28,000 millions euros, compared with 23,100 in 2014. The number of active customers increased to 22%. In collective investment schemes (sicav), Bankinter is still one of the leading market players having 461 at the close of year, a +20% rise. The bank takes second place in the national ranking by number of companies and has a market share of 13.5%.
Companies. Loan investment grew one year more. Its balance on the 31st of December 2015 was 19,700 million euros, 5.6% more than in the previous year. For active customers, there was a 6.9% rise (5,700 new active companies in the year).
Insurances. The subsidiary Linea Directa consolidated the improvements made in premiums and in policies, and at the same time kept this line of business highly profitable, with a ROE of 29.8% and one of the best combined ratios of the market, 86.7%. The total number of policies rose to 2.37 million (+6.4%) by the close of 2015. Last year, there was an 18% rise in home insurance.
Consumption financing. The Bankinter Consumer Finance investment figure rose by 71% to reach 719 million euros. At the end of 2015, it had 190.000 customer accounts, after these rose by 121%.
Mortgages. The new value of this was 1,857 million euros, 19.8% more than in 2014. According to data from the INE (Spanish Statistical Office) in October 2015 Bankinter had a 7% market share of new mortgages production.
Salary Accounts. The net balance came to 4,199 million euros, 22.5% more than twelve months earlier.
COINC (Bankinter online savings platform. After only three years of life, the volume of assets deposited in this online platform, one of the main ventures of the digital banking institution, exceeded 1,000 million euros belonging to 84,000 customers. at the close of year, +47% compared to 2014.