Q2 2024 Bankinter SA Earnings Call Transcript
Key Points
- Bankinter SA (BKIMF) reported a 13% increase in net profit, reaching EUR 473 million for the first half of 2024.
- The company achieved a 9% growth in net interest income despite a decline in Euribor rates.
- Fee income grew by 13%, driven by strong performance in off-balance sheet funds and customer transactional activity.
- The NPL ratio improved to 2.17%, with an increase in the coverage ratio to 68%.
- Bankinter SA (BKIMF) maintained a best-in-class efficiency level with a cost-to-income ratio of 37% and a return on equity of 17.7%.
- Operating expenses increased by 6% year-on-year, reflecting higher costs to support business growth and projects.
- The cost of risk rose by 7% year-on-year, indicating higher provisions for potential loan losses.
- The company's ALCO portfolio size increased, which may expose it to interest rate risks.
- Loan loss provisions totaled EUR 176 million, with a cost of risk at the high end of the annual guidance at 40 basis points.
- The integration of EVO Banco and expansion in Ireland may lead to higher costs and operational challenges in the short term.
Good morning. This is Laurie Shepard. On behalf of Investor Relations at Bankinter, it's our pleasure to welcome you all to the Bankinter's earnings call for the first half of 2024. Please note that our related financial statements were posted with market authorities earlier this morning. This presentation is also available on our corporate website.
On today's call, we are joined again by Bankinter's Chief Executive Officer, Gloria Ortiz; and Chief Financial Officer, Jacobo Diaz. At the end of the presentation, they will be available to respond to questions in a live Q&A. (Operator Instructions) Please refer to disclaimer in the presentation and note that this call is being recorded.
I will now turn over to Gloria Ortiz to review highlights.
Thank you, Laurie, and good morning to everyone in the call. Before starting, I would like to emphasize that the results on this first half of 2024 are very
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