Record profits for the seventh consecutive year

In 2019, the Bankinter Group posted a new record profit, cementing seven consecutive years of growth, with a compound annual growth rate of 24% between 2012 and 2019.

The Group posted net profit of 550.7 million euros and profit before tax of 741.4 million, up 4.6% and 2.8%, respectively, from the previous year.

These figures include EVO Banco and Avantcard, which were included in the Group's accounts on 31 May. Excluding the data from these businesses and the impact of their inclusion, profit before tax would have risen by 2.4%.

Bankinter ended the year with an RoE of 13%, one of the highest among Europe's listed banks.

Capital adequacy

The fully-loaded CET1 capital ratio ended the year at 11.61%, above European Central Bank's regulatory requirement for Bankinter of 8.20%. This minimum capital requirement figure will remain the same for this year.

In terms of liquidity, the customer funding gap   (difference between loans and receivables and customer funds) narrowed to 1,300 million euros from 3,700 million euros the year before, leaving a deposit-to-loan ratio of 98.3%.

Wholesale issues maturing in 2020 total only 800 million euros, plus a further 1,000 million for 2022, although Bankinter has 13,400 million euros in liquid assets and a debt issuing capacity of 6,000 million.

Margins

Bankinter's customer business continues to underpin the good results obtained by the Bank in 2019, which is reflected in the growth of all margins on the income statement.

• Net interest income was 1,190.6 million euros at 31 December, up 8.8% year-onyear. Excluding the contribution from EVO Banco and Avantcard, growth would stand at 5.1%.
• Net interest margin was 2.01%, up by nine basis points compared to 2018.
• Gross operating income stood at 2,054.7 million euros, 5.9% higher than in the previous year, with net fee and commission income of 479.5 million euros (+6.6%). Stripping out EVA Banco, gross operating income grew by 3.4%.
• Operating income totalled 977.5 million euros at the close of 2019, 4.4% higher than the previous year and 7.9% higher excluding EVO Banco. Operating expenses were 7.2% higher, due largely to the integration of the acquired businesses, although in the banking business (Spain and Portugal) they rose by only 0.2%.

The cost-to-income ratio of the banking business ended the year at 47.4% (45.3% excluding EVO Banco).

Balance sheet

• On Bankinter’s balance sheet, total group assets in 2019 were 83,732.3 million euros, 9.5% more than in 2018, including EVO Banco and Avantcard.
• Customer loans and receivables stood at 60,411 million euros, 8.9% more than one year ago. Excluding EVO Banco, and looking strictly at the business in Spain, loans and receivables grew by 5%. This compares favourably to the 1% decline seen in the rest of the sector in Spain to December according to Banco de España figures.
• Customer retail funds ended the year at 57,814.6 million euros, up 14.3% on the close of 2018. Taking into account Spain only and excluding EVO Banco, growth was above the sector average at 7%. Offbalance-sheet managed funds increased by 13.7%.

Business units

Bankinter's customer business has maintained is full potential, and continues to be the primary generator of Group revenue, where the pure banking areas are outpacing the insurance business. The main results were as follows:

Corporate Banking. This area fared well during the year, with a loan book of 25,500 million euros. Looking strictly at business in Spain, loans to companies increased by 5.1% to 23,800 million euros, compared to the further fall (this time of 2.7%) for the sector as a whole (data to November).

• Three business lines in the Corporate Banking area were particularly strong: International Banking, with gross operating income up 7%; Transactional Banking, with fee and commission income of over 14%, and Investment Banking, which has been operating under the new Bankinter Investment brand since November 2019, and reported a sharp 52% rise in fee and commission income and 22% growth in gross operating income in the year.

Commercial Retail Banking. The individual banking business also had a satisfactory year, and for the first time its contribution to Group gross operating income equalled that of Corporate Banking: 28%.

• The main driver of this business was Private Banking, with assets under management of 40,400 million euros, up 13% year-on-year and putting the CAGR for 2014-2019 at 7%.
• In the Personal Banking segment, assets under management increased by 9% to 23,700 million.

Línea Directa Aseguradora. Línea Directa Aseguradora ended the year with 3.16 million insured risks, up 5% from 2018, with increases of 3.6% in motor insurance policies and 9.6% in home insurance, the area with the strongest growth. Issued premiums totalled 891.3 million, up 4.5% year-on-year. Línea Directa ended 2019 with a combined ratio of 87.9%, RoE of 33% and a capital adequacy ratio of 211%.

Bankinter Consumer Finance. The segment had over 1.4 million customers at the close of the financial year, up 8% compared to 2018. The loan book reached 2,400 million euros, with 917 million euros of new loans, marking increases of 21% and 45%, respectively, from 2018. The NPL ratio was 5.7%.

Bankinter Portugal. Bankinter Portugal had another brilliant year, reporting profit before tax of 66 million euros, compared to 60 million euros in 2018. The customer business was positive throughout the year, with the loan book up 13%, particularly loans to customers, which rose by 26%. Funds also increased significantly (+7.6%), in addition to off-balance-sheet managed funds (+12%).

EVO Banco and Avantcard. EVO Banco and Avantcard showed growth in activity despite their recent inclusion in Bank's consolidation scope. From June to December, EVO acquired 50,000 new customers and arranged 85 million euros worth of new mortgages. Avantcard sustained strong annual growth in its loan book: 23%.

Products

• One standout is the volume achieved in the salary account portfolio (10,436 million euros; +25%), reflecting the consolidation and leadership of this product in the Spanish market.
• New mortgages in the year amounted to 2,956 million euros, up 17% from 2018, of which 38% were arranged at fixed rates.

Bankinter Group. Consolidated balance sheets at 31 December 2019 and 2018 (Thousands of euros)

Bankinter Group. Consolidated balance sheets at 31 December 2019 and 2018 (Thousands of euros)

Bankinter Group. Consolidated balance sheets at 31 December 2019 and 2018 (Thousands of euros)

Bankinter Group. Consolidated income statements for the years ended 31 December 2019 and 2018 (Thousands of euros)

Bankinter Group. Consolidated statement of recognised income and expense for the years ended 31 December 2019 and 2018 (Thousands of euros)

Bankinter Group. Consolidated statements of changes in total equity for the years ended 31 December 2019 and 2018 (Thousands of euros)

Bankinter Group. Consolidated statement of cash flows for the years ended 31 December 2019 and 2018 (Thousands of euros)