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Información consolidada 3T septiembre 08<br />
01. Datos significativos 1<br />
<strong>third</strong><br />
quarter<br />
twenty13<br />
Financial Summary<br />
September 2013
Index<br />
2 3 4 6 7<br />
1. Economic<br />
and financial<br />
environment<br />
2. Financial highlights 3. Results 4. Balance sheet 5. Customer funds<br />
and lending<br />
8 8 9 10 11<br />
6. Quality of assets 7. Doubtful debts<br />
movement<br />
8. Consolidated<br />
income statements<br />
9. Quarterly<br />
statements of<br />
income<br />
10. Fees<br />
12 13 14 14 15<br />
11. Yields and costs 12. Quarterly yields<br />
and costs<br />
13. Contribution by<br />
business area<br />
14. Shareholders<br />
equity and rating<br />
15. Variation in net<br />
worth<br />
16 17 17 19 21<br />
16. Creation of<br />
shareholder value<br />
17. People 18. Quality of service 19. Quarterly events 20. Corporate<br />
responsibility
2<br />
1. Economic and financial<br />
environment<br />
The <strong>third</strong> quarter of 2013 saw an improvement in the economic context of the developed countries. The US continued to<br />
lead the global recovery, while Japan managed to grow at a good pace and the Eurozone, despite bringing up the rear,<br />
showed significant signs of improvement. Nonetheless, this global recovery is being held back by the slowdown that the<br />
emerging countries are suffering.<br />
In the strictly domestic sphere, Spain shows early signs of improvement. Structural reforms and the process of fiscal<br />
consolidation have considerably improved the way Spain is perceived from abroad, bringing down the cost of financing<br />
debt issues. Additionally, improved competitiveness has allowed Spain’s current account balance to show a surplus,<br />
reducing dependence on external financing. Employment figures for the <strong>third</strong> quarter of 2013 also showed an improving<br />
trend, although reducing the unemployment rate will be a slow process. The keys to further progress in the short term are<br />
the achievement of the fiscal deficit objectives and the ability to start growing again from the second half of 2013.<br />
The Eurozone is evolving slowly but positively. Proof of this is the return to growth in the second quarter of the year,<br />
following six consecutive quarters of contraction. This return to growth was based essentially on the contributions of the<br />
two major powers, France and Germany, helped by less severe contraction in Spain and Italy. Furthermore, important<br />
indicators of both activity and confidence are starting to pick up. Apart from this, we are seeing a more proactive stance<br />
being adopted by the main European institutions, particularly the European Central Bank, which has confirmed that it<br />
will keep interest rates low for as long as necessary, with the aim of stimulating demand for credit, which continues to be<br />
weak.<br />
The USA is in a more advantageous situation than other economies, with a very acceptable growth rate, recovery in<br />
domestic demand and in the real estate market and satisfactory levels of job creation. This improvement in the US<br />
economy has given rise to fears that the Federal Reserve may start reducing its monetary expansion programme (QE3) in<br />
the next few months.<br />
Japan has been the surprise of the year. By applying an ultra-expansionist monetary policy it is managing to reverse<br />
the deflation that the country has suffered in recent years. The depreciation of the yen over the course of this year has<br />
helped to reactivate economic growth, which is expected to be nearly 2.0% for the whole year. In contrast, the emerging<br />
economies have suffered a significant reduction in their growth rates, in a context of instability caused by the depreciation<br />
of their currencies and delays in implementing structural reforms.<br />
On the other hand, the central banks continue to support the economy and as such constitute a fundamental pillar in the<br />
economic recovery. As in the US and Japan, we are also seeing a more proactive attitude towards monetary expansion<br />
on the part of the ECB. Increased liquidity and improved confidence in Europe have led to a degree of stabilisation in the<br />
European debt markets, with risk premiums narrowing, especially those of Spain and Italy. This stabilisation in the debt<br />
markets and the recovery of confidence in Europe has also had a positive influence on equity markets, which showed an<br />
encouraging trend in the <strong>third</strong> quarter.<br />
In short, the global economy is in a more advanced phase of economic recovery than in the preceding quarter. The<br />
Eurozone, including Spain, are gradually joining this trend, although rates of economic growth and recovery in<br />
employment will continue to be slow.
3<br />
2. Financial highlights<br />
thousands euros<br />
Variation<br />
Balance sheet 30/09/2013 30/09/2012 Amount %<br />
Total assets 57,752,496 57,245,389 507,107 0.89<br />
Credit facilities and loans 41,206,980 42,863,867 -1,656,887 -3.87<br />
Controlled resources 48,110,909 43,057,204 5,053,705 11.74<br />
On-balance sheet 37,106,090 35,531,494 1,574,596 4.43<br />
Retail resources excl. repos 26,476,844 24,548,368 1,928,475 7.86<br />
Negotiable securities, wholesalers 9,076,508 10,310,176 -1,233,668 -11.97<br />
Off-balance-sheet managed funds 11,004,819 7,525,710 3,479,109 46.23<br />
Equity 3,375,797 3,145,103 230,694 7.34<br />
Earnings<br />
Net interest income 461,925 513,558 -51,633 -10.05<br />
Gross operating Income 993,418 953,395 40,024 4.20<br />
Profit (loss) before impairment 492,618 450,332 42,286 9.39<br />
Income before taxes 211,089 85,790 125,299 146.05<br />
Net income attributed to the Group 155,805 72,296 83,509 115.51<br />
RATIOS (%)<br />
Nonperfor. loans 4.99 4.02 0.97 24.13<br />
Recorded allowance/nonperforming loans 42.51 50.62 -8.12 -16.02<br />
Cost to income 44.78 45.83 -1.05 -2.29<br />
ROE 6.49 3.09 3.40 110.03<br />
ROA 0.36 0.17 0.19 111.26<br />
Core Capital Ratio 11.70 9.44 2.25 23.84<br />
Bankinter shares<br />
Number of shares 877,175,614 563,777,178 313,398,436 55.59<br />
Closing price (€) 3.98 3.38 0.60 17.84<br />
EPS (€) 0.21 0.14 0.07 50.00<br />
DPS (€) 0.06 0.07 -0.01 -14.29<br />
Branches and centers<br />
Number of branches 359 366 -7 -1.91<br />
Sales offices<br />
Corporate 46 46 0 0.00<br />
SME 77 79 -2 -2.53<br />
Private Banking 38 59 -21 -35.59<br />
Corporate Partnerships 370 362 8 2.21<br />
Number of agents 464 513 -49 -9.55<br />
Telephone banking and Internet 3 3 0 0.00<br />
Headcount<br />
Number of employees 4,079 4,102 -23 -0.56<br />
LDA employees 1,898 1,900 -2 -0.11
4<br />
3. Results<br />
The Bankinter Group posted net income of €155.8 million for the first nine months of the year, just over twice as much as the<br />
same period last year (115.5% more). Pre-tax profits were €211.1 million, up by 146% on the nine months to 30 September<br />
2012.<br />
These solid results are based on the good performance of revenues both from the banking and the insurance activities, the fruit<br />
of a sound business strategy. In parallel with this, Bankinter continues to improve its level of solvency, as well as its financing<br />
structure and the quality of its assets, further increasing its lead over the rest of the sector.<br />
In this regard it should be pointed out that the Bank’s NPL ratio at the end of the <strong>third</strong> quarter was 4.99%, considerably<br />
less than half the sector average, and that the increase relative to the previous quarter was essentially due to the review of<br />
refinanced positions. Similarly, the bank’s portfolio of problem assets is small and enjoys a high degree of coverage: 42.5% of<br />
NPLs and 37.5% of repossessed assets.<br />
As regards solvency, Bankinter continues to strengthen its capital ratios, reaching an EBA capital ratio of 11.7% at the end of<br />
the <strong>third</strong> quarter, thanks mainly to the generation of recurring profits and a reduction in capital requirements in coverage of<br />
lending to SMEs.<br />
We should also stress that the Bank has no wholesale debt issues maturing until the fourth quarter of 2014 (€1.2 billion), with<br />
a further €1.2 billion due in 2015. The Bank has €6.3 billion of liquid assets with which to meet these maturities.<br />
In line with this, the Bank has continued to improve its financing structure, reducing its liquidity gap by €2.6 billion so far<br />
this year, while at the same time strengthening the ratio of deposits to loans, which stood at 71.8% as at 30 September 2013,<br />
compared with 64.9% one year earlier.<br />
As regards customer business, the Bank continues to focus its strategy on specific customer segments, especially private<br />
banking. Between September 2012 and September 2013, the amount of new private banking customers won over was 21%<br />
more than in the preceding twelve-month period. In that same period, private banking customers’ assets with the Bank<br />
increased by 18.2%. Another positive figure is the number of SICAV (open-ended collective investment funds) managed by the<br />
Bank, which stood at 277 at the end of the <strong>third</strong> quarter, 9.9% more than a year before.<br />
The insurance sales and distribution business showed a similar trend, particularly as regards Línea Directa, with significant<br />
growth in all branches. The total number of Línea Directa policies as at 30 September 2013 stood at 2.06 million, representing<br />
an increase of 5.9% compared with the end of Q3 2012. By branch, in relative terms the 30.4% YoY increase in the number of<br />
home insurance policies stands out.<br />
The quality of customer service through all the Bank’s various channels and networks continues to be one of the key factors<br />
on which the Bank bases its growth strategy. According to EQUOS RCB’s “Analysis of objective quality in commercial banking<br />
networks”, Bankinter comes out on top at the end of the <strong>third</strong> quarter of this year, with 7.26 points compared with the market<br />
average of 6.04.<br />
Margins and results<br />
The results presented by the Bankinter Group for the period that ended in September 2013 are based on good performance by<br />
all sources of revenue, especially those deriving from businesses on which the bank has focused its strategy, such as private<br />
and corporate banking, and on the good performance of the insurance activity. This increase in revenue, together with cost<br />
containment, has led to a further improvement in the cost/income ratio for the banking activity, which was 41.2% for the<br />
period.
Bankinter’s interest margin for the first nine months of the year stood at €461.9 million, representing a 10% decrease relative<br />
to YTD 30 September 2012, due essentially to the sharp fall in the one-year EURIBOR, which is still at all-time record lows.<br />
However, this reduction in the interest margin continues to recover, having bottomed out in the first quarter. In fact, the<br />
interest margin for the <strong>third</strong> quarter was €173.5 million, which is 11.3% more than the figure for the second quarter, which in<br />
turn was already 17.5% up on the first quarter of the year. This improvement was due to positive trends in customer margins<br />
and reduced financing costs.<br />
5<br />
As regards the gross margin and the margin before provisions, Bankinter continues to increase growth figures quarter by<br />
quarter. This is particularly noteworthy in the current difficult environment.<br />
The gross margin for the nine months to 30 September was €993.4 million, up 4.2% on the same period of last year (YTD end-<br />
June it was up 2.4%), thanks to the good performance of net commissions, which increased by 18.5% for the period, due largely<br />
to the private and corporate banking activities.<br />
As for the margin before provisions (€492.6 million YTD 30 September 2013), it was up by 9.4% on the previous year (YTD<br />
end-June 6.1%), which allowed the €19.6 million of additional provisions required by the supervisor relating to the review of<br />
refinancing operations to be absorbed.<br />
Bankinter’s net profit for the nine months to 30 September 2013 was €155.8 million, on pre-tax profit of €211.1 million,<br />
representing respective increases of 115.5% and 146% on the same period of last year.<br />
Turning to the balance sheet, Bankinter’s total assets at the end of the <strong>third</strong> quarter stood at €57,752.5 million, 0.9% more than<br />
at 30 September 2012. Resources under the Bank’s control amounted to €48,110.9 million, representing an increase of 11.7%.<br />
Also worth highlighting is the increase in resources managed off-balance sheet, particularly investment funds, which grew by<br />
53.6% compared with the <strong>third</strong> quarter of 2012, and the consequent 30.4% increase in management fees received.<br />
Customer lending amounted to €41,207 million, 3.9% less than at 30 September 2012, although it should be borne in mind that<br />
in that same period total lending of the Spanish finance sector fell by more than twice as much as this.<br />
Bankinter maintains exceptional asset quality.<br />
At the end of September, doubtful debts stood at €2,282.7 million, representing 4.99% of the Bank’s computable risk, well<br />
below the sector average. It must be pointed out, however, that the increase in NPLs during the quarter was largely due to the<br />
reclassification of refinanced loans in accordance with the new criteria of Spain’s central bank. In fact, of the approximately<br />
€200 million increase in doubtful debts compared with the previous quarter, €144 million is due to this change of criterion.<br />
Bankinter’s portfolio of refinanced loans at the end of Q3 stood at €1,719 million, representing 3.8% of the total computable<br />
risk, as against an 11% average for comparable banks. Of this refinanced portfolio, 39% is in ‘regular’ status’, 22% in ‘substandard’<br />
and 39% is in arrears.<br />
Bankinter’s portfolio of repossessed assets is very small and of high quality, concentrated particularly in residential property<br />
and, in all cases, with adequate risk cover. The gross value of the portfolio is €643.5 million, with cover of 37.5%. Furthermore,<br />
the Bank is selling them at an exceptionally fast pace, with gross sales of these assets representing 85% of gross new additions<br />
during the first nine months of the year.<br />
As regards equity, the bank’s solvency ratios, estimated in accordance with the Bank of Spain’s solvency rules and EBA criteria,<br />
are in a more solid position at the end of the first half of 2013 than one year previously, with a capital surplus of €1,328 million,<br />
21.5% more than at 30 September 2012.<br />
Lastly, we should point out the good performance of Bankinter’s stock (BKT) during this period. Over the past twelve months<br />
the stock has gained 83.30% adjusted for the bonus issue.
6<br />
4. Balance sheet<br />
thousands euros<br />
ASSETS<br />
Var. Sep. 13 / Dec. 12 Var. Sep. 13 / Sep. 12<br />
30/09/13 31/12/12 Thousand € % 30/09/12 Thousand € %<br />
Cash on hand and on deposits at central banks 345,343 665,374 -320,030 -48.10 550,124 -204,781 -37.22<br />
Trading portfolio 3,677,131 2,109,264 1,567,867 74.33 1,676,165 2,000,966 119.38<br />
Other financial assets at fair value<br />
50,675 39,860 10,815 27.13 26,460 24,215 91.51<br />
with changes to P&L account<br />
Available for sale portfolio 6,748,339 6,132,471 615,868 10.04 4,976,806 1,771,533 35.60<br />
Loans 42,581,991 44,751,950 -2,169,959 -4.85 45,118,745 -2,536,753 -5.62<br />
Due from banks 1,245,163 1,093,728 151,434 13.85 1,266,311 -21,148 -1.67<br />
Counterparty bodies 59,592 1,515,635 -1,456,043 -96.07 947,875 -888,283 -93.71<br />
Customer loans 41,206,980 42,059,716 -852,735 -2.03 42,863,867 -1,656,887 -3.87<br />
Debt instruments 70,257 82,871 -12,615 -15.22 40,692 29,564 72.65<br />
Investment portfolio held to maturity 2,762,388 2,755,355 7,033 0.26 3,201,072 -438,684 -13.70<br />
Hedge derivatives and macro-derivatives 78,713 155,219 -76,506 -49.29 134,571 -55,858 -41.51<br />
Other assets available for sale 402,027 381,141 20,886 5.48 361,024 41,003 11.36<br />
Associates 38,874 40,600 -1,726 -4.25 28,072 10,802 38.48<br />
Reinsurance assets 6,275 6,716 -442 -6.58 9,324 -3,050 -32.71<br />
Property, plant and equipment 437,278 442,288 -5,010 -1.13 449,209 -11,931 -2.66<br />
Intangible assets 304,600 317,537 -12,937 -4.07 322,201 -17,601 -5.46<br />
Fiscal assets and others 318,861 368,113 -49,252 -13.38 391,615 -72,754 -18.58<br />
TOTAL Assets 57,752,496 58,165,889 -413,393 -0.71 57,245,389 507,107 0.89<br />
Liabilities<br />
Trading portfolio 2,441,245 1,797,324 643,921 35.83 1,503,340 937,905 62.39<br />
Financial liabilities at amortized costs 50,847,133 52,079,071 -1,231,938 -2.37 51,483,983 -636,850 -1.24<br />
Hedge derivatives and macro-derivatives 26,192 43,100 -16,908 -39.23 39,459 -13,267 -33.62<br />
Insurance liabilities 611,370 618,286 -6,916 -1.12 631,918 -20,549 -3.25<br />
Write-offs and provisions 59,411 48,200 11,211 23.26 49,039 10,371 21.15<br />
Tax liabilities and others 391,349 348,812 42,537 12.20 392,546 -1,197 -0.30<br />
TOTAL Liabilities 54,376,699 54,934,793 -558,093 -1.02 54,100,285 276,413 0.51<br />
Valuation adjustments 55,972 3,052 52,920 1,734.05 -63,189 119,161 -188.58<br />
Equity 3,319,825 3,228,045 91,781 2.84 3,208,292 111,533 3.48<br />
Total equity 3,375,797 3,231,096 144,701 4.48 3,145,103 230,694 7.34<br />
Total equity and liabilities 57,752,496 58,165,889 -413,393 -0.71 57,245,389 507,107 0.89
7<br />
5. Customer funds<br />
and lending<br />
en thousands miles de euros<br />
Variation<br />
30/09/2013 30/09/2012 Amount %<br />
Retail funds 26,476,844 24,548,368 1,928,475 7.86<br />
Government deposits 379,016 265,495 113,522 42.76<br />
Private Sector Deposits 24,530,890 19,893,898 4,636,992 23.31<br />
Current accounts 13,012,609 9,180,945 3,831,663 41.73<br />
Term deposits 11,375,767 10,576,445 799,322 7.56<br />
Valuation adjustments 142,514 136,507 6,006 4.40<br />
Other sight liabilities 335,476 490,097 -154,621 -31.55<br />
Online marketable securities 1,231,461 3,898,879 -2,667,417 -68.41<br />
Temporary assignment of assets 1,552,739 672,950 879,789 130.74<br />
Wholesale marketable securities 9,076,508 10,310,176 -1,233,668 -11.97<br />
Promissory notes and bills of exchange 729,886 767,057 -37,171 -4.85<br />
Securitised notes 2,662,682 3,011,244 -348,563 -11.58<br />
Mortgage-backed bonds 5,393,335 5,693,774 -300,439 -5.28<br />
Senior notes 179,949 597,086 -417,136 -69.86<br />
Valuation adjustments 110,656 241,015 -130,358 -54.09<br />
Total 37,106,090 35,531,494 1,574,596 4.43<br />
Off-balance sheet resources 11,004,819 7,525,710 3,479,109 46.23<br />
Own investment funds 5,624,942 3,502,600 2,122,342 60.59<br />
External investment funds sold 1,805,517 1,335,843 469,674 35.16<br />
Pension funds 1,538,524 1,314,981 223,542 17.00<br />
Management of SICAVs (open-ended collective investment companies) 2,035,835 1,372,285 663,550 48.35<br />
Loans to government bodies 1,859,723 1,581,692 278,031 17.58<br />
Other sectors 39,347,257 41,282,175 -1,934,918 -4.69<br />
Commercial lending 1,855,229 1,965,916 -110,687 -5.63<br />
Receivables secured by collateral 25,693,345 28,307,025 -2,613,680 -9.23<br />
Other non-current receivables 8,741,477 8,141,594 599,883 7.37<br />
Personal loans 4,377,745 3,924,507 453,238 11.55<br />
Overdraft facilities 4,069,571 3,932,735 136,836 3.48<br />
Other non-current receivables 294,161 284,352 9,809 3.45<br />
Finance leases 779,435 832,254 -52,819 -6.35<br />
Doubtful debts 2,247,423 1,868,136 379,288 20.30<br />
Valuation adjustments -975,919 -943,948 -31,972 3.39<br />
Other lending 1,006,266 1,111,197 -104,931 -9.44<br />
Total customer lending 41,206,980 42,863,867 -1,656,887 -3.87<br />
Risk off the balance sheet 9,152,005 9,117,367 34,638 0.38<br />
Contingent risks 2,439,315 2,457,753 -18,438 -0.75<br />
Available to <strong>third</strong> parties 6,712,690 6,659,614 53,076 0.80
8<br />
6. Quality of assets<br />
thousands euros<br />
Variation<br />
30/09/2013 30/09/2012 Amount %<br />
Computable risk 45,711,729 47,124,078 -1,412,349 -3.00<br />
Doubtful risk (including contingent risks) 2,282,712 1,894,984 387,728 20.46<br />
Required provisions 970,280 959,310 10,969 1.14<br />
NPL ratio (%) 4.99 4.02 0.97 24.13<br />
Coverage rate (%) 42.51 50.62 -8.12 -16.02<br />
Repossessed assets 643,524 587,420 56,104 9.55<br />
Provision for foreclosed assets 241,497 226,396 15,101 6.67<br />
Foreclosed assets coverage(%) 37.53 38.54 -1.01 -2.62<br />
7. Doubtful debts movement<br />
thousands euros<br />
Variation<br />
Doubtful debts movement (including contingent risks) 30/09/2013 30/09/2012 Amount %<br />
Initial balance 1,984,028 1,515,767 468,261 30.89<br />
Net entries 476,741 513,997 -37,256 -7.25<br />
Write downs 178,057 134,780 43,277 32.11<br />
Final balance 2,282,712 1,894,984 387,728 20.46<br />
Bankinter NPLs compared with whole sector (in %)<br />
12.12%<br />
4.99%<br />
98 00 02 04 06 08 10 12<br />
l Bankinter<br />
l Sector
9<br />
8. Consolidated income<br />
statements<br />
thousands euros<br />
30/09/2013 30/09/2012 Variation<br />
Amount Amount Amount %<br />
Interest and related income 1,113,703 1,308,432 -194,729 -14.88<br />
Interest and related charges -651,778 -794,874 143,096 -18.00<br />
Net interest income 461,925 513,558 -51,633 -10.05<br />
Divident income 7,944 8,399 -455 -5.42<br />
Equity method 11,013 12,790 -1,777 -13.89<br />
Net fees and commissions 177,765 150,042 27,723 18.48<br />
Trading income 154,710 106,560 48,150 45.19<br />
Other operating income/expense 180,062 162,046 18,016 11.12<br />
Gross operating income 993,418 953,395 40,024 4.20<br />
Personnel expenses -251,732 -244,728 -7,003 2.86<br />
General expenses / Amortization -241,161 -241,382 221 -0.09<br />
Other -7,908 -16,952 9,044 -53.35<br />
Operating profit (loss) before impairment 492,618 450,332 42,286 9.39<br />
Additions to provisions -7,877 451 -8,328 n.r,<br />
Asset losses -233,498 -342,581 109,083 -31.84<br />
Operating profit (loss) net of impairment 251,243 108,202 143,042 132.20<br />
Gain / losses on disposals of assets -40,154 -22,412 -17,743 79.17<br />
Profit before taxes 211,089 85,790 125,299 146.05<br />
Tax on income -55,284 -13,495 -41,789 309.67<br />
Net income 155,805 72,296 83,509 115.51
10<br />
9. Quarterly statements<br />
of income<br />
thousands euros<br />
Variation (%) 2013 2012<br />
3Q13 3Q13/3Q12 3Q13/2Q13 2Q13 1Q13 4Q12 3Q12<br />
Interest and related income 370,103 -13.76 0.73 367,436 376,164 399,265 429,165<br />
Interest and related charges -196,626 -22.66 -7.08 -211,614 -243,539 -252,567 -254,252<br />
Net interest income 173,477 -0.82 11.33 155,822 132,625 146,697 174,913<br />
Divident income 1,949 19.85 -48.67 3,796 2,199 3,392 1,626<br />
Equity method 4,046 -6.08 18.47 3,415 3,553 4,887 4,307<br />
Net fees and commissions 61,477 19.41 1.88 60,345 55,943 53,798 51,483<br />
Trading income 36,060 41.02 -30.67 52,014 66,636 38,570 25,571<br />
Other operating income/expenses 58,973 10.14 -4.03 61,451 59,639 53,301 53,542<br />
Gross operating income 335,981 7.88 -0.26 336,844 320,594 300,646 311,443<br />
Personnel expenses -82,830 3.76 -1.66 -84,226 -84,676 -78,351 -79,825<br />
General expenses / Amortization -80,166 2.52 -0.97 -80,948 -80,047 -80,989 -78,196<br />
Other -2,654 -60.66 -13.63 -3,073 -2,181 -2,466 -6,746<br />
Operating profit (loss) before<br />
170,331 16.13 1.03 168,597 153,690 138,840 146,676<br />
impairment<br />
Additions to provisions -4,940 n.r 61.99 -3,050 113 -472 26<br />
Asset losses -81,925 14.48 6.52 -76,911 -74,662 -76,447 -71,562<br />
Operating profit (loss) net of<br />
83,465 11.08 -5.83 88,637 79,142 61,921 75,140<br />
impairment<br />
Gain / losses on disposals of assets -11,517 15.91 -33.39 -17,289 -11,348 6,468 -9,936<br />
Profit before taxes 71,948 10.34 0.84 71,347 67,794 68,389 65,204<br />
Tax on profit -18,440 18.62 -5.06 -19,422 -17,423 -16,031 -15,546<br />
Net income 53,509 7.75 3.05 51,926 50,371 52,358 49,658<br />
Gross margin and cost to income (%) Operating income before provisions (million €)<br />
337 336<br />
321<br />
180<br />
160<br />
140<br />
311<br />
120<br />
100<br />
301<br />
80<br />
60<br />
45.8 46.2 46.5<br />
45.4 44.8<br />
40<br />
20<br />
0<br />
3Q12 4Q12 1Q13 2Q13 3Q13 3Q12 4Q12 1Q13 2Q13 3Q13<br />
l Gross margin<br />
l Cost to income
11<br />
10. Fees<br />
thousands euros<br />
Variation<br />
30/09/2013 30/09/2012 Amount %<br />
Fees paid 47,845 53,129 -5,284 -9.95<br />
Fees received<br />
Guarantee and L/C 22,018 20,590 1,427 6.93<br />
Foreign exchange 5,701 5,496 206 3.74<br />
Due to contingent commitment 11,573 10,608 965 9.10<br />
Payment and collection services 52,107 43,125 8,981 20.83<br />
Brokerage services 35,066 31,574 3,492 11.06<br />
Underwritting and management fees 1,117 2,327 -1,210 -51.99<br />
Buy/sell orders 15,829 14,506 1,323 9.12<br />
Custody and administration 14,222 14,081 141 1.00<br />
Wealth management 3,898 660 3,238 490.57<br />
Non-banking financial products 71,730 63,366 8,364 13.20<br />
Asset Management 40,510 31,645 8,865 28.01<br />
Insurance and Equity 31,220 31,721 -501 -1.58<br />
Other commissions 27,415 28,412 -997 -3.51<br />
Total fees received 225,610 203,171 22,439 11.04<br />
Fees and commissions net 177,765 150,042 27,723 18.48
12<br />
11. Yields and costsin %<br />
30/09/2013 30/09/2012<br />
weighting rate weighting rate<br />
Cash on hand and on deposit at central banks 0.66 0.41 0.89 0.46<br />
Due from banks 3.45 0.46 3.86 1.38<br />
Credit facilities and loans (a) 70.19 2.72 72.91 3.12<br />
Debt securities 20.17 3.17 16.31 3.94<br />
Equity portfolio 0.57 3.25 0.50 3.80<br />
Average earnings assets (b) 95.04 2.74 94.49 3.16<br />
Other assets 4.96 5.51<br />
Average total assets 100.00 2.60 100.00 2.99<br />
Due to central banks 13.25 0.63 15.31 0.94<br />
Due to banks 12.83 1.77 14.54 1.82<br />
Customer funds (c) 62.65 1.81 61.87 2.23<br />
Customer deposits 43.89 1.73 35.51 1.95<br />
Marketable debt securities 18.76 2.00 26.36 2.60<br />
Subordinated liabilities 1.28 4.50 1.64 4.29<br />
Average interest bearing funds (d) 90.02 1.67 93.37 1.93<br />
Other liabilities 9.98 6.63<br />
Average total funds 100.00 1.51 100.00 1.80<br />
Customer spread (a-c) 0.91 0.89<br />
Net interest margin (b-d) 1.07 1.23
13<br />
12. Quarterly<br />
yields and costs<br />
in %<br />
Cash on hand and on deposit at<br />
central bank<br />
3Q13 2Q13 1Q13 4Q12 3Q12<br />
weighting rate weighting rate weighting rate weighting rate weighting rate<br />
0.71 0.29 0.55 0.57 0.71 0.42 0.67 0.46 0.58 0.42<br />
Due from banks 3.49 0.52 3.28 0.44 3.59 0.43 2.99 0.61 3.62 0.87<br />
Credit facilities and loans (a) 70.10 2.65 69.71 2.70 70.76 2.80 75.14 2.86 72.85 3.04<br />
Debt securities 20.18 3.16 20.79 3.10 19.55 3.26 16.72 3.71 16.77 3.80<br />
Equity portfolio 0.58 2.33 0.57 4.62 0.55 2.80 0.49 4.87 0.47 2.35<br />
Average earnings assets (b) 95.05 2.69 94.91 2.73 95.17 2.79 96.01 2.94 94.29 3.09<br />
Other assets 4.95 5.09 4.83 3.99 5.71<br />
Average total assets 100.00 2.56 100.00 2.59 100.00 2.66 100.00 2.82 100.00 2.92<br />
Due to central banks 12.27 0.50 12.32 0.61 15.16 0.75 16.86 0.76 16.51 0.78<br />
Due to banks 14.01 1.61 13.85 1.67 10.64 2.09 9.50 2.27 13.71 1.87<br />
Customer funds (c) 62.26 1.61 62.39 1.77 63.31 2.05 62.07 2.14 58.36 2.19<br />
Customer deposits 44.63 1.50 44.14 1.67 42.91 2.04 39.97 2.12 35.97 1.87<br />
Marketable debt<br />
17.62 1.89 18.25 2.02 20.41 2.07 22.10 2.18 22.40 2.71<br />
securities<br />
Subordinated liabilities 1.21 4.75 1.31 4.48 1.33 4.30 1.48 3.80 1.58 4.26<br />
Average interest bearing funds (d) 89.75 1.50 89.87 1.64 90.44 1.87 89.92 1.93 90.18 1.85<br />
Other liabilities 10.25 10.13 9.56 10.08 9.82<br />
Average total funds 100.00 1.35 100.00 1.47 100.00 1.70 100.00 1.73 100.00 1.67<br />
Customer spread (a-c) 1.04 0.93 0.75 0.72 0.85<br />
Net interest margin (b-d) 1.19 1.09 0.92 1.01 1.24<br />
Quarterly ATA (Thousand €) 57,768,717 57,439,351 57,770,293 56,774,164 58,781,551<br />
Customer margin for the quarter / return on customer<br />
lending and cost of customer resources (%)<br />
4<br />
3<br />
2<br />
0.85<br />
0.72<br />
0.75<br />
0.93<br />
1.04<br />
1<br />
0<br />
3Q12 4Q12 1Q13 2Q13 3Q13<br />
l Cost of customer resources<br />
l Customer margin for the quarter<br />
l Return on customer lending
14<br />
13. Contribution<br />
by business area<br />
thousands euros<br />
Variation<br />
30/09/2013 30/09/2012 Amount %<br />
Customer segments 782,916 723,230 59,685 8.25<br />
Commercial and Private Banking 338,043 327,522 10,521 3.21<br />
Corporate Banking 444,873 395,708 49,165 12.42<br />
Capital market 299,612 264,737 34,874 13.17<br />
Línea Directa 241,104 233,422 7,682 3.29<br />
Corporate Centre -330,213 -267,995 -62,218 23.22<br />
Gross Margin 993,418 953,395 40,024 4.20<br />
14. Shareholders<br />
equity and rating<br />
thousands euros<br />
Variation<br />
30/09/2013 30/09/2012 Amount %<br />
Paid-in capital and reserves 3,154,473 2,965,269 189,204 6.38<br />
Other equity instruments 72,103 72,800 -698 -0.96<br />
Capital with nature of financial liability 60,844 60,844 0 0.00<br />
Treasury shares -579 -3,271 2,692 -82.29<br />
Intangible assets and other -275,669 -277,099 1,430 -0.52<br />
Other deductions -167,660 -147,640 -20,020 13.56<br />
Tier 1 2,843,511 2,670,902 172,609 6.46<br />
Revaluation reserve 0 96,220 -96,220 -100.00<br />
Subordinated debt financing 505,424 609,095 -103,671 -17.02<br />
Other deductions -167,056 -134,522 -32,534 24.19<br />
Tier 2 338,368 570,793 -232,426 -40.72<br />
Total Equity 3,181,879 3,241,695 -59,816 -1.85<br />
Risk-weighted assets 23,173,270 26,863,644 -3,690,374 -13.74<br />
Tier 1 (%) 12.27 9.94 2.33 23.42<br />
Tier 2 (%) 1.46 2.12 -0.66 -31.28<br />
Capital ratio (%) 13.73 12.07 1.66 13.79<br />
Excess 1,328,018 1,092,604 235,414 21.55<br />
Core Tier 1 2,710,564 2,537,259 173,306 6.83<br />
Core Tier 1 ratio 11.70 9.44 2.25 23.84<br />
Ratios estimated in accordance with the Bank of Spain’s solvency regulations and EBA criteria.<br />
Short term Long term Outlook Date<br />
DBRS R-1 (low) A (low) Negative November 2012<br />
Moody’s NP Ba1 Negative June 2012<br />
Standard & Poor’s B BB Stable July 2013
15<br />
15. Variation<br />
in net worth<br />
thousands euros<br />
Balance at January 1, 2012 3,086,996<br />
Dividends -64,497<br />
Valuation adjustments 34,697<br />
Income for the year 124,654<br />
Other variations 49,246<br />
Balance at December 31, 2012 3,231,096<br />
Balance at January 1, 2013 3,231,096<br />
Dividends -48,066<br />
Valuation adjustments 52,920<br />
Income for the year 155,805<br />
Other variations -15,958<br />
Balance at September 30, 2013 3,375,797
16<br />
16. Creation of<br />
shareholder value<br />
Period per share data (€)<br />
Earnings per share 0.21<br />
Diluted earnings per share 0.21<br />
Dividend per share 0.06<br />
Book value per share 3.85<br />
Price at beginning of year 3.14<br />
Low 2.69<br />
High 4.11<br />
Closing price 3.98<br />
Appreciation in last quarter (%) 45.15<br />
Appreciation in last 12 months (%) 17.84<br />
Past 12 months’ revaluation adjustment for bonus issue (%) 83.30<br />
Stock market ratios<br />
Price/Book value (times) 1.03<br />
PER (price/earnings, times) 16.76<br />
Dividend yield (%) 2.28<br />
Number of shareholders 73,385<br />
Number of shares 877,175,614<br />
Number of shares held by nonresidents 290,466,340<br />
Average daily trading (number of shares) 7,309,876<br />
Average daily trading (thousands of euros) 25,905<br />
Market capitalisation (thousand of euros) 3,488,527<br />
Share price. Relative variation (%) (September-12 base 100)<br />
Sep 12 Sep 13<br />
l Ibex 35<br />
l Bankinter<br />
l Eurostoxx Banca (SX7P)<br />
Note: Share prices prior to the bonus issue have been adjusted so as to<br />
be comparable with the Ibex 35 and Euro Stoxx Banks.
17<br />
17. People<br />
30/09/2013 30/09/2012 Variación %<br />
Number of employees (*) 4,079 4,102 -23.00 -0.56<br />
Average length of service of employees (in years) 13.00 12.00 1.00 8.33<br />
Average age (in years) 40.00 39.00 1.00 2.56<br />
Employee distribution by gender (%)<br />
Men 49.11 48.83 0.28 0.57<br />
Women 50.89 51.17 -0.28 -0.55<br />
Workforce that has logged in from a remote system (%) 26.53 30.20 -3.67 -12.15<br />
Internal job rotation (%) 22.62 16.68 5.94 35.62<br />
External turnover (%) 3.88 5.93 -2.05 -34.60<br />
Percentage of the headcount with university degrees (%) 81.10 77.96 3.14 4.03<br />
(*)Data on mobile Resource Turnover in last 12 months.<br />
18. Quality of service<br />
By segments<br />
By distribution channel<br />
85<br />
80<br />
75<br />
70<br />
65<br />
60<br />
81<br />
79<br />
77<br />
75<br />
73<br />
71<br />
69<br />
3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013<br />
l Private banking<br />
l Personal banking<br />
l Individuals banking<br />
l Corporate banking<br />
l Companies<br />
l Foreign customers<br />
l Bankinter Partnet<br />
l Agent Network<br />
l Branch Network<br />
l Remote Network<br />
Notes:<br />
Foreign customers segment: the rating was significant as a quarterly moving avareage in June and December.<br />
Small enterprises segment: the rating was significant as a quarterly moving avareage in December.<br />
ISN satisfaction scale<br />
>85 excelent<br />
75-85 good<br />
60-75 fair<br />
18<br />
Evolution of the % of clients who recommend Bankinter<br />
Using channels<br />
Transactions by channel<br />
30<br />
25<br />
20<br />
21.2%<br />
22.8%<br />
24.7% 24.6%<br />
23.2%<br />
15<br />
10<br />
5<br />
0<br />
3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013<br />
l 1 channel, 42%<br />
l 2 channel, 39%<br />
l 3 channel, 19%<br />
l Telephone Banking, 4.3%<br />
l Cellular phones, 10.3%<br />
l Internet, 44.0%<br />
l Branchs, 33.6%<br />
l Cards, 2.9%<br />
Analysis of objective quality in the branch banking<br />
networks: Bankinter compared with market trend<br />
10<br />
Products by customer<br />
6.5<br />
9<br />
6.0<br />
5.5<br />
5.4<br />
5.3<br />
8<br />
7<br />
6<br />
7.2 7.3<br />
7.0<br />
6.0<br />
5.0<br />
4.5<br />
4.0<br />
3.5<br />
5<br />
2007 2008 2009 2010 2011 2012 3Q13<br />
3.0<br />
3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013<br />
l Market<br />
l Bankinter<br />
Churn rate, private individuals<br />
Churn rate, companies. Qualified<br />
7<br />
7.0<br />
5.8<br />
7<br />
6<br />
6.5<br />
6.4<br />
6.3<br />
5.4<br />
6<br />
5<br />
5.5<br />
4<br />
5<br />
S12 D12 M13 J13 S13 S12 D12 M13 J13 S13
19<br />
19. Quarterly events<br />
S&P raises Bankinter’s credit rating outlook<br />
In mid-July, Standard & Poor´s credit rating agency<br />
confirmed Bankinter’s long- and short-term rating at<br />
‘BB/B’, raising its outlook for the Bank from ‘negative’ to<br />
‘stable’.<br />
The US agency, which sees an upward revision of the<br />
credit rating as likely in the medium term, based its<br />
decision on Bankinter’s ability to generate recurring profits<br />
in spite of the adverse context in Spain, and on the efforts<br />
made to bolster its capital. In making its decision, S&P<br />
also took account of the high quality of the bank’s assets<br />
compared to those of other Spanish banks.<br />
According to S&P, the Bank’s low level of NPLs and the<br />
reduction in future provisioning requirements following<br />
the exceptional additions required of the financial sector<br />
in 2012, will have a positive effect on Bankinter’s organic<br />
earnings and on its ability to generate capital.<br />
In its report, the rating agency also speaks highly of the<br />
change made by Bankinter to its business model, reducing<br />
its previously heavy dependence on low-margin mortgage<br />
lending to focus on growth in the corporate lending<br />
business and the private banking customer segment. It<br />
also highlights the Bank’s efforts to change its financing<br />
mix, reducing its reliance on wholesale markets in favour<br />
of greater weighting of retail financing.<br />
Bankinter EURIBOR + 1.95 Mortgage Loan<br />
Bankinter recently gave a further boost to its mortgage<br />
loan offering by improving the terms of the floating rate<br />
mortgage loan to include a margin over EURIBOR up to<br />
1.95%, with no opening or early repayment commissions<br />
and no minimum interest rate; in other words the most<br />
favourable conditions in the market for a product of this<br />
kind.<br />
Bankinter’s new mortgage loan features a first-year<br />
interest rate of 3.9% if the borrower takes out payment<br />
protection insurance, or 4.2% otherwise.<br />
After the first year, the interest rate applied is EURIBOR<br />
plus a margin that can be as low as 1.95% if the borrower<br />
signs up for the corresponding overall product package:<br />
direct payroll deposit, three utility bills, life insurance and<br />
home insurance. If any of these three products is not signed<br />
up for, the margin will increase: by 1% without direct<br />
payroll deposit or life insurance, and by 0.25% without<br />
home insurance.<br />
We should point out that this new sales campaign includes<br />
new special conditions for borrowers aged under 35. For<br />
these customers Bankinter undertakes, by means of a<br />
certificate, to maintain the EURIBOR applied at the time<br />
of signing for three years, passing on the benefit of any<br />
reductions on the first two annual revisions but not the<br />
effect of any increases.<br />
The commercial offer of this product is conditional upon the<br />
acquisition of a primary residence with an appraised value<br />
equal to or in excess of €150,000, a maximum loan-to-value<br />
of 80%, and borrowers with aggregate net income of at<br />
least €3,000 per month. The maximum term for which the<br />
mortgage loan can be taken is 30 years.
20<br />
Bankinter’s new mortgage loan features all the benefits that<br />
the Bank normally offers with this type of product, and can<br />
be signed up to on the same financial terms as a ‘Hipoteca<br />
Sin Más’, i.e. using the mortgaged residential property as<br />
the only security.<br />
New online fixed income broker<br />
Bankinter has launched a new online fixed income broker,<br />
through which the Bank’s customers can directly access a<br />
wide range of public and private debt issues both domestic<br />
and international.<br />
Bankinter’s fixed income broker enables clients to buy<br />
and sell debt issues in the secondary market, use various<br />
search tools to filter the issues best suited to each particular<br />
customer’s needs and actively monitor the fixed income<br />
portfolio, accessing the valuations of their issues, the details<br />
of their transactions, movements, coupon payments, etc.<br />
The fixed income broker product offering includes domestic<br />
and foreign public and private debt issues: mortgage-backed<br />
bonds, senior private debt and subordinated debt.<br />
Bankinter Mobile Telephony, relaunch of the operator<br />
with new rates.<br />
During the quarter, Bankinter’s mobile telephony<br />
distribution service launched a new commercial offering<br />
which, among other advantages, includes calls at one<br />
euro cent a minute at any time and to any destination.<br />
The new Smartphone Rate, positioned as one of the<br />
cheapest in the market, involves a drastic reduction in<br />
the nominal price per minute compared with the rates<br />
previously offered by the operator.<br />
Along with calls at one euro cent a minute, the new<br />
Smartphone Rate features the following conditions: a<br />
monthly fee of €6, which includes a flat rate for 500<br />
MB of high-speed data; as well as free calls between<br />
Bankinter telephones and no charge for data traffic to<br />
Bankinter destinations, meaning that navigation and<br />
SMS to the Bank’s web pages and services from a mobile<br />
phone, or even using the broker service from a mobile,<br />
will cost the customer nothing.<br />
For customers who make more intensive use of the<br />
mobile phone, Bankinter offers one of the cheapest<br />
voice and data rates in the market, the ‘Tarifa 19’, which<br />
includes 250 minutes a month of ‘anytime, anywhere’<br />
calls and 1 GB of high-speed data navigation. All this<br />
for just €19 a month for life, without a long-term<br />
commitment.
21<br />
20. Corporate<br />
responsibility<br />
Bankinter obtains verification of its carbon footprint for<br />
2012<br />
Bankinter has obtained from SGS, an independent analysis<br />
and certification body, verification of the calculation of its<br />
organisational carbon footprint based on the Greenhouse Gas<br />
Protocol, the most- used international tool for calculating<br />
emissions, which is also in line with the requirements of the<br />
Intergovernmental Panel on Climate Change (IPCC).<br />
In this way, SGS, a world leader in inspection, verification,<br />
analysis and certification, recognises the validity of the<br />
methodology applied by the Bank to calculate direct and<br />
indirect greenhouse gas (GHG) emissions produced by its<br />
activity, as well as the veracity of the data included en its<br />
2012 Report on Organisational Carbon Footprint, which<br />
conforms to the principles established in the GHG Protocol.<br />
Bankinter has been calculating its carbon footprint since<br />
2007. The calculation takes account of GHG emissions<br />
in three different contexts (or ‘scopes’): those associated<br />
with the activity of the bank’s branch network and central<br />
facilities, those associated with providers and the workforce<br />
and those due to customers.<br />
With this global analysis of emissions, Bankinter is<br />
preparing ahead of time for the initiatives of the European<br />
Commission and the Spanish government in their<br />
proposals that companies should report emission data<br />
beyond Scope 1 (direct emissions).
Bankinter SA<br />
Paseo de la Castellana. 29<br />
28046 Madrid<br />
T, 913 397 500<br />
bankinter,com