Investment banking

The Investment Banking division has been in operation for barely five years, but it has become a leader in this business segment not only in Spain, but internationally as well.

Part of the bank's global strategy of providing comprehensive financial service to its customers, especially Enterprise and Private Banking customers, Bankinter's Investment Banking seeks to provide outstanding global advisory to customers who have to make major decisions on the future of their entrepreneurial projects. We aim to be a bridge between companies – especially family companies – entrepreneurs and investors who are potentially interested in supporting and financing their projects. With this purpose in mind, the bank's work is to constantly seek out opportunities, as it capitalises on the abundant liquidity and the appetite for the Spanish mid market. 

In doing so, the bank has two important strengths. First, its reputation in risk management, which has allowed it to boast the lowest non-performing loan rate in the sector. Second, it has developed a model in which Investment Banking is not walled off from commercial activity, but rather closely linked to it. This allows customers to simultaneously enjoy the familiarity of their usual manager and specialised corporate advisory.

This strategy demand greater effort from our commercial network, but it brings doubtless benefits because it generates substantial value in the long term, builds customer loyalty and strengthens Bankinter's position as its customers' global bank.

Development of the four growth axes in Investment Banking in 2016 was as follows:

• Mergers and acquisitions. At a time of growth of the market for buying and selling companies, Bankinter was involved in six operations, mostly of industrial customers and mainly acting as adviser to the sellers. It has also worked on preparing fairness opinions for important customers of the bank. 

• Capital market. The listing of Pangea on the Alternative Stock Market towards the end of the year, the inaugural issues of bonds of Aguas de Valencia, Teknia and Masmovil are examples of the bank's activity in this area, which includes private placements among institutional investors.

• Structured and alternative financing. In 2016, transactions amount to more than 1,200 million euros were signed, and the portfolio ended the year above 2,000 million, including a significant balance in syndicated corporate loans. The volume signed the year in Structured Financing transactions generated global returns of 325 bps. Bankinter is the only bank that, relying on alternative lenders, takes part in complex financing processes with structured proposals together with players such as Spanish or foreign funds or insurance companies, thus providing customers with substantial added value in terms of cost, flexibility and swiftness.

Property financing

Bankinter commenced this year its activity of advisory in property financial transactions, such as the sale of hotel or logistical assets, portfolios of property loans and so on, owing to the demand among customers. It achieved quite satisfactory results. We also note the launch at the end of the year of an investment company in the real estate market (SOCIMI) for the best Private Banking customers and certain institutional investors with which bank has a special relationship. This launch was a milestone in Private Banking, as the first time the bank is generating its own product in alternative investments for its customers. The bank is working with the Sonae Sierra Group, one of the leading property managers at present, as manager of the project. The bank is committed to generating alternative products with a good risk-profitability ratio for its Private Banking customers, and Investment Banking is also working along these lines.