Tuesday, February 20

Bankinter earns 1,333 million thanks to the capital gains from the IPO of Línea Directa

  • Profit without extraordinary items improved by 38%, to 437 million, due to higher revenues and lower provisions

  • Dancausa criticizes the ECB’s “political approach” to inflation and claims to move European funds away from party interests

Bankinter won 1,333.1 million euros in 2021, with a 320% hike compared to the previous year, which mainly responded to the capital gain of 895.7 million generated by the IPO of its subsidiary Línea Directa. Without this extraordinary result, the benefit would have been 437.4 million, with an also notable increase of 38% achieved thanks to the increase in income (8.56%) above the rise of expenses (3%) and, above all, for the lower provisions to face future losses (-28%) after the extraordinary effort made in 2020 by covid.

Unlike other competitors, thus, the improvement in Bankinter’s results is based in part on the increase in business. The entity increased his credits 5.7% to customers, up to 68,048.8 million. In Spain the increase was 3.9%, compared to a sector that reduced its portfolio 0.3% until November. Due to the lower contribution from Línea Directa, its recurring profit is still below the maximum it reached in 2019 (551 million), but the CEO, Maria Dolores Dancausa, has reaffirmed its objective of recovering said level of profits in 2023.

The banker has shown this Thursday worried about a inflation that “can wreak havoc” and has criticized that the president of the ECB, Christine Lagarde, “have a more political than monetary approach“. He also lamented that Spain is going “a little late” in the deployment of european funds, who has asked that they be “away from the interests of the political parties“, while warning that the levels of public debt and deficit “are increasingly difficult to break”. However, he has also declared himself “optimistic” about the future of a “great country” like Spain, as long as when economic agents have the “sufficient degrees of freedom”.

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Dancausa has also referred to the recent legal change approved by the Government to nationalize Sareb, advanced by this newspaper. “Paraphrasing Gabriel García Márquez, it is the A Chronicle of a Death Foretold. We do not have nothing to complain about. It was an extreme situation that was experienced in the financial sector, they told us to put money and we put it. The impact on the bank’s accounts will be zero because it has been provisioned for years,” he pointed out.

The bank, on the other hand, managed to reduce its delinquency last year from 2.37% to 2.24%, one of the lowest levels in the sector. “At the moment we think that the cost of risk (new provisions on the volume of credit) and non-performing loans will remain stable this year, that we have passed the peak of non-performing loans”, assured the financial director, Jacobo Díaz. The entity has also closed the year with one of the highest levels of the system of cost effectiveness (9.59% without the capital gains by the insurer) and capital (12,05%).