Although 2021 got off to a difficult start in Portugal, with various restrictions on movement and the resulting impact on economic activity, recovery subsequently happened more quickly than expected, which brought unemployment figures to record lows. The main drivers behind this recovery were private consumption and investment, while the increase in exports remained more moderate, due to the difficulties encountered in reviving the tourism sector.
In this context, Bankinter Portugal, which celebrated its fifth anniversary in 2021, continued to keep its employees safe thanks to strict safety measures. It also protected its customers against the economic and financial impact of the pandemic, both through the branch network and through telephone and digital banking, which were strengthened.
The profit before tax, which reflects the continuous growth of previous years, was 50.3 million euros, up 11% from the previous year. The recurring business with customers showed a gross operating income of 152.1 million euros (+10%), an operating margin of 65.5 million euros (+20%) and a turnover of 18.3 billion euros (+18%). Total credit granted amounted to 7.6 billion euros, up 9%, well above the market average, which was 3.8%, according to November data from Banco de Portugal. Customer funds grew by 23%, to 5.9 billion.
Commercial Retail Banking. Significant growth was once again recorded in strategic business items. New equity increased by 1.178 billion euros, 660 million of which corresponded to off-balance sheet funds. Investment funds recorded annual net production of 313 million euros, with 156 million in own funds. Home loans grew by 24%, with a heavy focus on fixed-rate mortgages. Private Banking increased its customer base by 6%, registering a growth in turnover of more than 25% (an additional 700 million euros) and its gross operating income grew by 26%. Significant progress was made in the fully digital acquisition and management of customers, after the investments into digital platforms and the developments made in the last two years.
Business Banking. In a year full of challenges, still marked by the pandemic, Bankinter Portugal maintained its commitment to proximity and support for its business customers. The turnover of the Business segment (SMEs with revenues of up to 5 million euros) exceeded 2 billion euros, up 14% (255 million) from 2020. For the Medium-Sized Companies and Corporate segment, it reached 3.180 billion euros (+41% ). International closed 2021 with a 35.2% growth in the loan portfolio.
Bankinter Consumer Finance. Turnover increased by 25%, and amounts granted exceeded 310 million euros with 160,000 customers, approximately 50% of which come from the open market model (without banking requirements). The financial difficulties caused by the pandemic came to a head in 2021, as a result of credit moratoriums coming to an end and period repayments resuming. To mitigate this impact, Bankinter Consumer Finance made every effort to find the best solutions for its customers. Following on from the trend already seen in 2020, the use of digital channels increased, which underwent significant improvements.
Bankinter Asset Management. 2021 was the first full year of activity for the Bankinter Asset Management branch in Portugal. Assets under management stood at 1.127 billion euros as of 31 December, 358 million of which were investment funds. The Bankinter Mega TT PPR fund was launched, the aim of which is to take advantage of the medium-term profitability potential of the business associated with sustainability, consumer and business trends, and also digitalisation. At the end of the year, the volume of assets under management for this fund was close to 20 million euros.
Bankinter Seguros de Vida. Total mathematical reserves closed 2021 at 1.620 billion euros (+1.5%), with a 3% drop in the life insurance market in Portugal. In terms of the volume of written premiums, growth was also higher than the average, which demonstrates the resilience of customers and their trust in the risk and investment products offered by the bank.
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