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Bankinter SAPaseo de la Castellana, 2928046 Madrid (Spain)T. +34 913 397 500F. +34 913 398 323Telex. 42760 BANKI ESwift: BKBK ES MM
www.bankinter.com
Financial Summary1st quarter · March 2008
Flexibility
cobertes 1T ING.qxd:Maquetación 1 17/4/08 18:44 Página 1
01. Financial highlights
Financial Summary 1st Quarter March 08 01. Financial highlights 1
Balance sheet
Total assets
Credit facilities and loans
Credit facil. and loans ex-securitization
Customer funds
Off-balance-sheet managed funds
Earnings
Net interest income
Ordinary Income
Operating income
Income before taxes
Net income attributed to the Group
Ratios
Nonperfor. loans/ total risk expos. ex-securit. (%)
Recorded allowance/nonperforming loans (%)
Cost to income (%)
ROE (%)
ROA (%)
Capital ratio (%)
Tier 1 capital (%)
Bankinter shares
Number of shares
Closing price
EPS. Earnings per share (euros)
DPS. Dividend per share (euros)
Branches and centers
Number of branches
Commercial management centers
Corporate Business Units
SME Business Units
Private Banking Centers
Corporate Partnerships
Number of agents
Telephone banking and Internet
Headcount
Number of employees**
(*) BIS I regulations
(**) Full-time equivalent
Variation
03/31/2008 03/31/2007 Amount %
51,007,914 46,990,823 4,017,091 8.55
38,186,777 32,879,263 5,307,514 16.14
40,440,164 35,525,832 4,914,332 13.83
39,673,966 35,506,353 4,167,613 11.74
10,455,536 11,907,206 -1,451,669 -12.19
153,776 143,132 10,644 7.44
246,028 236,470 9,558 4.04
122,480 130,399 -7,919 -6.07
100,102 120,156 -20,054 -16.69
73,655 85,167 -11,512 -13.52
0.46 0.27 0.20 74.65
293.00 529.81 -236.82 -44.70
48.42 44.36 4.06 9.15
16.60 22.37 -5.77 -25.79
0.57 0.74 -0.17 -22.70
9.59 9.97* -0.38 -3.81
6.89 6.72* 0.17 2.53
405,893,880 395,245,225 10,648,655 2.69
10.05 12.27 -2.22 -18.09
0.18 0.22 -0.04 -18.18
0.08 0.07 0.01 15.02
363 337 26 7.72
51 50 1 2.00
161 133 28 21.05
50 44 6 13.64
559 533 26 4.88
1,005 991 14 1.41
3 3 0 0.00
4,582 4,093 489 11.95
1T 2008_ingles.qxd:Bankinter 1T 08 CAST 28/4/08 08:29 Página 1
Financial Summary 1st Quarter March 08 02. Introduction 2
02. Introduction
The approach adopted by the Bankinter Group at the beginning of 2008 was marked by an increase in funds, sustainedgrowth in lending and the attraction and activation of new customers in the Bank’s target segments, which led it to reportresults that demonstrate the robustness of its recurring business and its continuing high degree of solvency given thequality of its assets and the level of capitalisation.
The major figures disclosed at the end of this first quarter point most notably to a 24.2% increase in averagecustomer deposits with respect to the year-ago period; a 3.29% rise in the deposit/loan ratio to 63.4%; a good showing interms of attraction of new customers in strategic segments, with overall active customer growth of 18.4% in High Incomeand of 13.9% in SMEs; and an increase of 11.3% in net interest income (excluding dividends) compared with the firstquarter of 2007. All this was achieved whilst maintaining a non-performing loans ratio of 0.46%, once again the lowest inthe Spanish banking industry.
Based on these premises, the Bankinter Group’s net profit for the first quarter of 2008 amounted to EUR 73.65million and profit before tax stood at EUR 100.10 million, signalling solid results despite the economic climate.
The most noteworthy feature of the various income-statement margins was the strength of net interest income. Thequarterly figure for this margin (excluding dividends) was EUR 151.38 million, up 11.3% on the year-ago period,underpinned by the higher spreads on loans. Again, this growth was attained despite the current economic climate andthe campaign launched by the Bank in the quarter to attract deposits. Disregarding this campaign, which entailed new-deposit costs of EUR 8.8 million, net interest income (excluding dividends) would have grown by 17.7%.
The substantial increase in new customer funds was accompanied by selective growth in lending to customers,which at March 2008 was 16.14% higher than in the year-ago period and helped the Bank to achieve an improvedfinancial equilibrium.
Particularly laudable in the customer business was the sound performance of the segments that Bankinter regardsas strategic and in which the highest investments were made, above all those encompassing high net worth customers:Private Banking and Personal Finance, and the SME segment.
The High Income segments (Private Banking and Personal Finance) reported increases of 28.2% in averagecumulative lending and 23.2% in borrowed funds, together with 4,969 new customers gained in the period, 68.9% morethan the figure for the first quarter of 2007. The SME segment displayed growth of 23% in average lending, 21.7% inborrowed funds and 13.9% in new customers in the quarter.
At the same time, in order to continue with the sound management of the various businesses, there was a sizeableincrease in the total number of the Bank’s employees, which at the end of the first quarter totalled 4,582, up 12% on 31March 2007.
Once again this quarter, the quality of service provided to customers continued to be one of the variables on whichBankinter’s strategy is based. The Bank’s Net Satisfaction Index (ISN) stood at 76.21, 6.32 points higher than the marketaverage.
As regards the Bank’s business ratios, its efficiency ratio was 48.42%; ROE stood at 16.60% and ROA was 0.57%.
1T 2008_ingles.qxd:Bankinter 1T 08 CAST 28/4/08 08:29 Página 2
Financial Summary 1st Quarter March 08 02. Introduction 3
Margins and Earnings
The highlights of Bankinter’s balance sheet were as follows: total assets grew by 8.55% to reach EUR 51,008 million;on- and off-balance sheet customer funds amounted to EUR 50,129 million at 31 March, with particularly outstandinggrowth in time deposits which, boosted by the campaign to attract customers, totalled EUR 6,675 million, up 45.07%.Also particularly worthy of note are the Bank’s loans and receivables which, at EUR 38,187 million, were 16.14% higherthan the figure for the year-ago period.
The figures for the main margins in Bankinter’s income statement for the period ended 31 March 2008 were asfollows: net interest income stood at EUR 153.78 million (+7.44%); gross income was EUR 246.03 million (+4.04%); andnet operating income fell by 6.07%, impacted by the investments to develop the strategic businesses –increased number ofemployees and new branches– which led to an increase of 16.5% in the Bank’s operating costs compared with the firstquarter of 2007.
Net fee and commission income was similar to that reported at the end of March 2007, bolstered by the highervalue-added services.
Non-performing loans amounted to EUR 202.29 million, equivalent to 0.46% of the Bank’s computable risk assets, aratio that is far lower than that for the industry as a whole. Similarly, the ratio of the recognised allowance to non-performing loans stood at 293%. Total loan loss allowances increased by 8.80% with respect to the first quarter of 2007. Inshort, Bankinter continues to maintain excellent solvency levels founded on its in-house risk analysis, acceptance andautomatic management systems, portfolio diversification, conservative loan loss provisions and scant exposure to countryrisk.
As regards BIS II capital regulations, the Bank’s estimated capital ratios, calculated in accordance with the draftBank of Spain Circular on the determination and control of minimum capital requirements, were adequate at quarter-end,with a core capital ratio (without deductions) of 6.01%. Particular mention should be made of the recent confirmation ofBankinter’s credit ratings by the related agencies, which reflects its appropriate capitalisation and financing structure, thehigh quality of its assets, and the profitability of its business.
On 10 January 2008, the debentures issued to employees and convertible into shares were converted early followingthe resolution adopted by the Board of Directors of Bankinter at its meeting on 19 December 2007. Also, in order to caterfor the conversion, the Bank’s share capital was increased through the issuance of 9,014,305 new shares of EUR 0.30 parvalue each, representing 2.27% of the share capital.
Earnings per share stood at EUR 0.18, down 18.18% on the year-ago period. Also, the Bankinter (BKT) share pricemirrored the adverse market trend and ended the quarter at EUR 10.05, compared with EUR 12.27 at 31 March 2007.
Lastly, on 5 April 2008 Bankinter paid the fourth 2007 interim dividend, which amounted to EUR 0.0781 per share.
1T 2008_ingles.qxd:Bankinter 1T 08 CAST 28/4/08 08:29 Página 3
Financial Summary 1st Quarter March 08 03. Quality of service 4
ISN satisfaction scale
>85
75-85
60-75
<60
03. Quality of service
Excellent
Good
Fair
Poor
81
79
77
75
73
71
4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007
By distribution channel
Corporate partnerships
Agent Network
Branch Network
Internet Office
Telephone Branch
85848382818079787776757473
4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007
By segments
Corporate Banking
Individuals
Small Business
Private Banking
Non-residents
1T 2008_ingles.qxd:Bankinter 1T 08 CAST 28/4/08 08:29 Página 4
Financial Summary 1st Quarter March 08 04. Customer activity 5
04. Customer activity
In the first quarter of the year, quality continued to be a variable that sets Bankinter apartfrom rival banks, as evidenced by its results, with an Overall Global Customer SatisfactionIndex (ISN) of 76.21, 6.32 points above the market average (widening the gap by 0.29points with respect to the last quarter of 2007).
Once again this quarter, the customer segment displaying the highest level ofquality appreciation was Foreign Customers, with an ISN of 82.24 points; followed byPersonal Finance, with a score of 76.39; and Private Banking, with 76.39 points.
Of all the Bank’s networks, the Agent Network was the one best perceived bycustomers, scoring an ISN of 77.34 points, followed by Virtual Branches, with a score of76.86.
The platform with the highest level of perceived satisfaction is Internet Individuals,with an ISN score of 79.53 points; this result is all the more impressive if it is taken intoaccount that 52.4% of the Bank’s total transactions are now conducted through this channel.
In this quarter, the quality perceived by customers in the mortgage loan process wasalso satisfactory, with the Bank achieving an ISN score of 72.46. The churn rate fell 0.75%quarter-on-quarter to 6.49%.
100
80
60
40
20
0
2000 2002 2004 2006 1Q 2008
Evolution of transactions by channel (%)
40%
52.4%
32.5%
Cards Branch NetworkInternetCellular phones Telephone Banking Electronic Banking
1T 2008_ingles.qxd:Bankinter 1T 08 CAST 28/4/08 08:29 Página 5
Financial Summary 1st Quarter March 08 04. Customer activity 6
Use of channels
6.5
6.4
6.3
6.2
6.1
4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007
Products by customer
27%
33%
40%
1 channel
2 channels
3 channels
Nu
mbe
rs o
f pr
odu
cts
8
7
6
5
4
4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007
Churn rate
% A
nn
ual
Rat
e 6.49
5.59
6.43
6.28
1T 2008_ingles.qxd:Bankinter 1T 08 CAST 28/4/08 08:29 Página 6
Financial Summary 1st Quarter March 08 05. Balance sheet 7
05. Balance sheet
Assets
Cash on hand and on deposits at central banks
Trading portfolio
Available for sale portfolio
Loans
Due from banks
Customer loans
Other assets
Hedge derivatives and macro-derivatives
Other assets available for sale
Affiliates
Intangible assets
Accrual accounts
Total assets
Equities and liabilities
Liabilities
Trading portfolio
Financial liabilities at amortized costs
Due to banks
Customer deposits
Marketable debt securities
Subordinated debt
Other liabilities
Hedge derivatives and macro-derivatives
Write-offs and provisions
Accrual accounts
Capital with nature of financial liabilities
Total liabilities
Equity
Equity adjustments due to valuation
Equity
Total equity
Total equity and liabilities
Var. 03/31/2008-12/31/2007 Var. 03/31/2008-03/31/2007
03/31/2008 12/31/2007 Amount % 03/31/2007 Amount %
551,785 946,486 -394,701 -41.70 254,723 297,062 116.62
2,511,171 1,669,865 841,306 50.38 3,567,591 -1,056,420 -29.61
3,681,071 3,747,014 -65,943 -1.76 3,766,100 -85,029 -2.26
43,358,309 42,393,702 964,607 2.28 38,331,302 5,027,007 13.11
4,608,513 4,414,853 193,660 4.39 5,165,598 -557,085 -10.78
38,186,777 37,580,125 606,652 1.61 32,879,263 5,307,514 16.14
563,019 398,724 164,295 41.21 286,441 276,578 96.56
60,316 68,443 -8,127 -11.87 73,557 -13,241 -18.00
5,939 4,493 1,446 32.18 4,054 1,885 46.50
166,835 154,617 12,218 7.90 115,925 50,910 43.92
372,961 371,578 1,383 0.37 348,403 24,558 7.05
299,527 292,482 7,045 2.41 529,168 -229,641 -43.40
51,007,914 49,648,680 1,359,234 2.74 46,990,823 4,017,091 8.55
1,341,152 927,436 413,716 44.61 2,210,715 -869,563 -39.33
47,015,849 46,250,570 765,279 1.65 41,868,227 5,147,622 12.29
5,863,253 6,263,232 -399,979 -6.39 5,314,114 549,139 10.33
23,628,395 22,540,818 1,087,577 4.82 21,262,550 2,365,845 11.13
16,045,571 16,233,470 -187,899 -1.16 14,243,803 1,801,768 12.65
576,125 571,575 4,550 0.80 643,527 -67,402 -10.47
902,505 641,475 261,030 40.69 404,233 498,272 123.26
30,426 22,028 8,398 38.12 307 30,119 9810.75
146,937 149,989 -3,052 -2.03 618,916 -471,979 -76.26
268,369 204,431 63,938 31.28 311,223 -42,854 -13.77
348,770 348,809 -39 -0.01 348,925 -155 -0.04
49,151,503 47,903,263 1,248,240 2.61 45,358,313 3,793,190 8.36
-10,177 -32,561 22,384 -68.74 607 -10,784 -1776.61
1,866,588 1,777,978 88,610 4.98 1,631,903 234,685 14.38
1,856,411 1,745,417 110,994 6.36 1,632,510 223,901 13.72
51,007,914 49,648,680 1,359,234 2.74 46,990,823 4,017,091 8.55
1T 2008_ingles.qxd:Bankinter 1T 08 CAST 28/4/08 08:29 Página 7
Financial Summary 1st Quarter March 08 06. Customer funds and lending 8
06. Customer funds and lending
Customer funds
Customer deposits
Government entities
Residents
Demand deposits
Savings deposits
Time deposits
Secur. sold under repurchase agreement
Nonresidents
Adjustments due to valuation
Marketable debt securities
Total
Off-balance-sheet managed funds
of which:
Mutual funds
Pension funds
Credit facilities and loans
Lending to government entities
Lending to residents
Commercial bills
Secured loans
Leasing
Other credit facilities
Lending to nonresident borrowers
Nonperforming loans
Subtotal
Loan loss allow. (excl. off-balance-sheet risks)
Other adjustements due to valuation
Total
Total ex-securitization
Var, 03/31/2008 - 03/31/2007
03/31/2008 03/31/2007 Amount %
23,628,395 21,262,550 2,365,845 11.13
408,720 1,482,156 -1,073,436 -72.42
22,370,449 19,177,822 3,192,627 16.65
8,701,144 8,538,992 162,152 1.90
98,168 102,278 -4,110 -4.02
6,674,879 4,601,064 2,073,815 45.07
6,896,258 5,935,488 960,770 16.19
705,627 513,542 192,085 37.40
143,599 89,030 54,569 61.29
16,045,571 14,243,803 1,801,768 12.65
39,673,966 35,506,353 4,167,613 11.74
10,455,536 11,907,206 -1,451,669 -12.19
7,504,335 9,203,409 -1,699,074 -18.46
1,103,018 1,081,082 21,936 2.03
67,563 42,802 24,761 57.85
37,427,430 32,457,624 4,969,806 15.31
1,586,440 1,625,174 -38,734 -2.38
26,660,377 22,842,686 3,817,691 16.71
1,447,779 1,196,722 251,057 20.98
7,732,834 6,793,042 939,792 13.83
917,643 705,646 211,997 30.04
200,671 101,171 99,500 98.35
38,613,307 33,307,243 5,306,064 15.93
559,336 512,255 47,081 9.19
132,806 84,275 48,531 57.59
38,186,777 32,879,263 5,307,514 16.14
40,440,164 35,525,832 4,914,332 13.83
1T 2008_ingles.qxd:Bankinter 1T 08 CAST 28/4/08 08:29 Página 8
Financial Summary 1st Quarter March 08 07. Analysis of credit risk 9
07. Analysis of credit risk
Risk exposure ex securitization
Total nonperforming balance
Total allowances
Mandatory allowances
Generic
Specific
% Nonperf. loans/Total risk exposure (ex securit.)
% Nonperforming loans/Total risk exposure
% Nonperforming mortgages/Total mortgages
% Recorded alowance/Nonperforming loans
% Recorded alowance/unsecured nonperforming
Variation
03/31/2008 03/31/2007 Amount %
43,519,287 38,633,727 4,885,560 12.65
202,288 102,821 99,467 96.74
592,700 544,757 47,944 8.80
592,700 544,757 47,944 8.80
526,953 509,405 17,548 3.44
65,747 35,352 30,395 85.98
0.46 0.27 0.20 74.65
0.49 0.29 0.20 68.97
0.25 0.14 0.11 79.43
293.00 529.81 -236.82 -44.70
241.07 395.34 -154.27 -39.02
610
550
490
430
370
310
250
190
130
70
4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007
Nonperforming loans and allowances
Mil
lion
s of
eu
ros
530
500
470
440
410
380
350
320
290
4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007
Variation in recorded allowance/nonperforming loans
%
293
Allowances
Nonperforming loans
202.29
102.82
544.76
529.81
592.70
1T 2008_ingles.qxd:Bankinter 1T 08 CAST 28/4/08 08:29 Página 9
Financial Summary 1st Quarter March 08 08. Comparative income statements 10
08. Comparative income statements
Interest revenue
Interest expense
Interests on preference shares
Revenue from equity portfolio
Net interest income
Equity accounting
Fees and commissions
Insurance activity
Trading income
Ordinary income
Personnel expenses
General and administrative costs
Depreciation and write-downs
Other operating items
Operating income
Write-off and provisions
General allowances
Other results
Income before taxes
Corporate income tax
Income after taxes attibuted to the group
ATA
2008 2007 Variation
Amount % s/ATA Amount % s/ATA Amount %
622,784 4.84 474,782 4.13 148,002 31.17
-471,404 -3.66 -338,722 -2.95 -132,682 39.17
-3,809 -0.03 -4,806 -0.04 997 -20.74
2,396 0.02 7,072 0.06 -4,676 -66.12
153,776 1.20 143,132 1.24 10,644 7.44
10,910 0.08 9,894 0.09 1,016 10.27
59,536 0.46 59,574 0.52 -38 -0.06
0 0.00 1,608 0.01 -1,608 -100.00
21,806 0.17 22,262 0.19 -456 -2.05
246,028 1.91 236,470 2.06 9,558 4.04
-66,169 -0.51 -59,937 -0.52 -6,232 10.40
-52,956 -0.41 -44,958 -0.39 -7,998 17.79
-7,592 -0.06 -5,434 -0.05 -2,158 39.71
3,169 0.02 4,258 0.04 -1,089 -25.58
122,480 0.95 130,399 1.13 -7,919 -6.07
-22,484 -0.17 -14,675 -0.13 -7,809 53.21
41 0.00 4,680 0.04 -4,639 -99.12
65 0.00 -248 0.00 313 -126.21
100,102 0.78 120,156 1.04 -20,054 -16.69
-26,447 -0.21 -34,989 -0.30 8,542 -24.41
73,655 0.57 85,167 0.74 -11,512 -13.52
51,743,129 46,635,557 5,107,572 10.95
1801651501351201059075604530
4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007
Income attributed to the Group
Mil
lion
s of
eu
ros
73.66
85.17
1T 2008_ingles.qxd:Bankinter 1T 08 CAST 28/4/08 08:29 Página 10
Financial Summary 1st Quarter March 08 09. Quarterly statements of income 11
09. Quarterly statements of income
Interest revenue
Interest expense
Interests on preference shares
Revenue from equity portfolio
Net interest income
Equity accounting
Fees and commissions
Insurance activity
Trading income
Ordinary income
Personnel expenses
General and administrative costs
Depreciation and writte-downs
Other operating items
Operating income
Write-off and provisions
General allowances
Other results
Income before taxes
Corporate income tax
Income after taxes attibuted to the group
ATA
Variation
1Q 08 1Q08/1Q07 1Q08/4Q07 4Q 07 3Q 07 2Q 07 1Q 07
622,784 31.17 3.25 603,186 559,615 514,552 474,782
-471,404 39.17 2.20 -461,243 -408,825 -374,785 -338,722
-3,809 -20.74 9.64 -3,474 -3,471 -3,431 -4,806
2,396 -66.12 -62.94 6,466 2,817 2,979 7,072
153,776 7.44 3.62 148,409 153,607 142,746 143,132
10,910 10.27 -6.65 11,687 10,462 9,110 9,894
59,536 -0.06 -3.90 61,954 60,807 61,814 59,574
0 -100.00 - 0 0 980 1,608
21,806 -2.05 32.45 16,464 9,720 25,624 22,262
246,028 4.04 3.15 238,514 234,596 240,274 236,470
-66,169 10.40 -15.34 -78,162 -70,348 -89,847 -59,937
-52,956 17.79 -22.66 -68,471 -48,866 -51,741 -44,958
-7,592 39.71 7.32 -7,074 -6,396 -6,074 -5,434
3,169 -25.58 -36.67 5,004 3,662 4,906 4,258
122,480 -6.07 36.38 89,811 112,648 97,518 130,399
-22,484 53.21 -21.92 -28,795 -2,674 -29,489 -14,675
41 -99.12 -99.41 6,978 -313 230 4,680
65 -126.21 -103.79 -1,716 -20,927 141,035 -248
100,102 -16.69 51.03 66,278 88,734 209,294 120,156
-26,447 -24.41 39.05 -19,020 -25,269 -43,321 -34,989
73,655 -13.52 55.86 47,258 63,465 165,973 85,167
51,743,129 50,201,543 48,102,916 47,527,508 46,635,557
135130125120115110105100959085
4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007
Ordinary income Operating income
Mil
lion
s of
eu
ros
250
240
230
220
210
200
190
4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007
Mil
lion
s of
eu
ros
122.48
130.40246.03
236.47
1T 2008_ingles.qxd:Bankinter 1T 08 CAST 28/4/08 08:29 Página 11
Financial Summary 1st Quarter March 08 10. Fees 12
10. Fees
Fees paid
Fees paid to other banks
Fees paid to agents. virtual banking
Total fees paid
Fees received
Guarantee and L/C
Foreign exchange
Payment and collection services
Commercial bills
Sight accounts
Debit and credit cards
Checks
Payment orders
Brokerage services
Underwritting and management fees
Buy/sell orders
Custody and administration
Non-banking financial products
Mutual funds
Pension funds
Insurance
Other fees
Total fees received
Fees and commissions net
Variation
03/31/2008 03/31/2007 Amount %
5,556 5,094 462 9.07
12,735 13,363 -628 -4.70
18,291 18,457 -166 -0.90
4,833 4,835 -2 -0.04
2,469 1,923 546 28.39
19,566 15,765 3,801 24.11
6,335 4,739 1,596 33.68
2,364 2,451 -87 -3.55
8,457 6,383 2,074 32.49
470 284 186 65.49
1,940 1,908 32 1.68
16,293 18,803 -2,510 -13.35
6,725 7,191 -466 -6.48
4,101 6,098 -1,997 -32.75
5,467 5,514 -47 -0.85
22,976 24,503 -1,528 -6.23
15,694 19,308 -3,614 -18.72
844 3,643 -2,799 -76.82
6,437 1,552 4,885 314.82
11,690 12,202 -512 -4.20
77,827 78,031 -205 -0.26
59,536 59,574 -38 -0.06
1T 2008_ingles.qxd:Bankinter 1T 08 CAST 28/4/08 08:29 Página 12
Financial Summary 1st Quarter March 08 11. Yields and costs 13
11. Yields and costs
Cash on hand and on deposit at Central Bank
Due from banks
Credit facilities and loans (a)
Debt securities
Equity portfolio
Average earnings assets (b)
Other assets
Average total assets
Due to central banks
Due to banks
Money market trans. through counterparties
Customer funds (c)
Customer deposits
Marketable debt securities
Subordinated liabilities
Capital with nature of financial liabilities
Average interest bearing funds (d)
Other liabilities
Average total funds
Customer spread (a-c)
Net interest margin (b-d)
03/31/2008 03/31/2007
weighting rate weighting rate
0.99 3.55 1.01 2.78
9.64 4.00 10.99 3.70
73.27 5.23 68.38 4.51
11.57 4.03 13.87 3.81
0.71 2.63 1.17 5.26
96.18 5.05 95.42 4.39
3.82 4.58
100.00 4.86 100.00 4.19
2.06 4.77 0.00 0.00
10.90 3.84 19.02 3.51
0.09 4.05 0.13 2.74
77.61 3.95 70.85 3.09
45.55 3.39 40.70 2.53
32.06 4.75 30.15 3.85
1.12 5.22 1.30 4.60
0.67 4.39 0.75 5.59
92.45 3.96 92.05 3.20
7.55 7.95
100.00 3.66 100.00 2.95
1.28 1.42
1.09 1.19
1T 2008_ingles.qxd:Bankinter 1T 08 CAST 28/4/08 08:29 Página 13
Financial Summary 1st Quarter March 08 12. Quarterly yields and costs 14
12. Quarterly yields and costs
4Q07 3Q07 2Q07 1Q07 4Q06
weight. rate weight. rate weight. rate weight. rate weight. rate
Cash on hand and on deposit
at central bank
Due from banks
Credit facilities and loans (a)
Debt securities
Equity portfolio
Average earnings assets (b)
Other assets
Average total assets
Due to central banks
Due to banks
Money market transactions
through counterparties
Customer funds (c)
Customer deposits
Marketable debt securities
Subordinated liabilities
Capital with nature of financial liabilities
Average interest bearing funds (d)
Other liabilities
Average total funds
Customer spread (a-c)
Net interest margin (b-d)
0.99 3.55 0.92 3.49 0.98 2.88 0.94 3.26 1.01 2.78
9.64 4.00 11.15 4.05 12.52 4.06 12.10 3.89 10.99 3.70
73.27 5.23 73.55 5.14 73.49 4.93 70.03 4.69 68.38 4.51
11.57 4.03 10.42 4.16 8.64 4.03 11.37 3.93 13.87 3.81
0.71 2.63 0.66 7.74 0.89 2.60 1.19 2.11 1.17 5.26
96.18 5.05 96.69 4.98 96.52 4.81 95.63 4.57 95.42 4.39
3.82 3.31 3.48 4.37 4.58
100.00 4.86 100.00 4.82 100.00 4.64 100.00 4.37 100.00 4.19
2.06 4.77 1.44 4.71 0.11 4.26 0.00 0.00 0.00 0.00
10.90 3.84 11.40 3.87 13.08 3.98 17.10 3.80 19.02 3.51
0.09 4.05 0.12 4.15 0.03 4.02 0.12 3.83 0.13 2.74
77.61 3.95 78.01 3.92 77.18 3.59 72.99 3.33 70.85 3.09
45.55 3.39 43.94 3.27 44.37 3.03 42.68 2.79 40.70 2.53
32.06 4.75 34.07 4.75 32.81 4.34 30.31 4.10 30.15 3.85
1.12 5.22 1.16 5.11 1.20 4.80 1.34 4.76 1.30 4.60
0.67 4.39 0.69 3.95 0.73 3.95 0.73 3.94 0.75 5.59
92.45 3.96 92.82 3.93 92.34 3.65 92.27 3.43 92.05 3.20
7.55 7.18 7.66 7.73 7.95
100.00 3.66 100.00 3.65 100.00 3.37 100.00 3.16 100.00 2.95
1.28 1.22 1.34 1.36 1.42
1.09 1.06 1.15 1.14 1.19
6
5
4
3
2
1
4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007
Evolution Customer spread Return on lending and Cost of customer funds
An
nu
aliz
ed Q
uar
terl
y ra
te
1.45
1.40
1.35
1.30
1.25
1.20
4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007
An
nu
aliz
ed Q
uar
terl
y ra
te
1.28
1.42 5.23
Coste de recursos de clientesRendimiento del crédito
4.51 3.95
3.09
1T 2008_ingles.qxd:Bankinter 1T 08 CAST 28/4/08 08:30 Página 14
Financial Summary 1st Quarter March 08 13. Contribution by business areaFunds and lending by segment
15
13. Contribution by business area
Variation
03/31/2008 03/31/2007 Amount %
Customers business divisions
Personal Finance
Private Banking
Corporate Banking
Individuals
Small and Medium Size Companies
Non-Residents
Capital Markets
Other businesses
General allowances
Corporate Center
Income after taxes attrib. to the group
Pro-memoria:
Asset management fees
77,112 75,871 1,241 1.64
7,574 8,371 -797 -9.52
12,087 14,422 -2,335 -16.19
18,699 16,532 2,167 13.11
24,684 23,158 1,526 6.59
12,141 11,355 786 6.93
1,927 2,034 -106 -5.23
5,707 10,778 -5,071 -47.05
10,018 14,046 -4,027 -28.67
-2,848 -6,253 3,405 -54.45
-16,334 -9,274 -7,060 76.12
73,655 85,167 -11,512 -13.52
17,500 21,269 -3,769 -17.72
-13,6%más que en el mismoperiodo de 2006
BDI
Funds and lending by segment
Variation
Ordinary funding 03/31/2008 03/31/2007 Amount %
Finance
Private
Corporate
Individuals
SMEs
Foreigners
TOTAL
Lending
Finance
Private
Corporate
Individuals
SMEs
Foreigners
TOTAL
1,876,046 1,653,449 222,597 13.46
3,783,335 2,941,588 841,747 28.62
3,477,137 3,269,378 207,759 6.35
5,295,055 4,002,871 1,292,184 32.28
2,824,199 2,321,653 502,546 21.65
262,527 270,363 -7,836 -2.90
17,518,300 14,459,301 3,058,999 21.16
1,588,645 1,279,861 308,784 24.13
3,961,151 3,048,714 912,438 29.93
5,383,886 4,686,788 697,098 14.87
21,378,193 19,455,545 1,922,648 9.88
6,998,042 5,688,458 1,309,584 23.02
877,832 748,016 129,816 17.35
40,187,748 34,907,381 5,280,367 15.13
1T 2008_ingles.qxd:Bankinter 1T 08 CAST 28/4/08 08:30 Página 15
Financial Summary 1st Quarter March 08 14. Shareholders equity and rating 16
14. Shareholders equity and rating
Variation
12/31/2007 12/31/2006 Amount %
Paid-in capital and reserves
Capital with nature of financial liability
Revaluation reserve
Treasury stock
Intangible assets
Tier 1
Revaluation reserve
Subordinated debt financing
Recorded general loan loss allowance
Other deductions
Tier 2
Total Equity
Risk-weighted assets
Tier 1 (%)
Tier 2 (%)
Capital ratio (%)
Excess (*) Ratios estimated on the basis of the draft Circular on Determination and Control of Minimum Capital published
by the Bank of Spain.
Internal models, as yet pending official approval, are applied to the following portfolios: home mortgage loans,
individuals, small businesses and medium-sized businesses.
1,783,127 1,687,154 95,973 5.69
343,165 343,165 0 0.00
-52,626 -55,754 3,128 -5.61
-66,981 -49,631 -17,350 34.96
-98,984 -117,310 18,326 -15.62
1,907,701 1,807,624 100,077 5.54
103,791 106,511 -2,720 -2.55
537,851 537,851 0 0.00
190,781 201,962 -11,181 -5.54
-85,972 -80,697 -5,275 6.54
746,452 765,627 -19,176 -2.50
2,654,152 2,573,251 80,901 3.14
27,683,076 27,186,601 496,476 1.83
6.89 6.65 0.24 3.61
2.70 2.82 -0.12 -4.26
9.59 9.47 0.12 1.27
439,506 398,323 41,183 10.34
Short term Lomg term Outlook
Moody’s P-1 Aa3 Stable
Standard & Poor’s A1 A Positive
Ratings
1T 2008_ingles.qxd:Bankinter 1T 08 CAST 28/4/08 08:30 Página 16
Financial Summary 1st Quarter March 08 15. Variation in net worth16. Cash flow statement
17
15. Variation in net worth
2007 2006
Balance at January 1
Dividends
Capital increase
Reserve - available-for-sale
Income for the year
Other variations
Balance at March 31
1,745,417 1,584,602
-31,378 -26,836
56,103 14,196
22,384 -23,325
73,655 85,167
-9,770 -1,294
1,856,411 1,632,510
16. Cash flow statement
2007 2006
Cash and Cash Equivalents Balance at January 1
Net cash flow - operating activities
Net cash flow - investment activities
Net cash flow - financing activities
Cash and Cash Equivalents Balance at March 31
946,486 539,178
-354,665 -297,666
-8,522 -6,639
-31,513 19,850
551,785 254,723
1T 2008_ingles.qxd:Bankinter 1T 08 CAST 28/4/08 08:30 Página 17
Financial Summary 1st Quarter March 08 17. Creation of shareholder value 18
17. Creation of shareholder value
Period per share data (euros)
Earnings per share
Diluted earnings per share
Dividend per share
Book value per share
Price at beginning of year
Low
High
Closing price
Appreciation in last quarter (%)
Appreciation in last 12 months (%)
Stock market ratios
Price/Book value (times)
PER (price/earnings. times)
Dividend yield (%)
Number of shareholders
Number of shares
Number of shares held by nonresidents
Average daily trading (number of shares)
Average daily trading (thousands of euros)
0.18
0.18
0.08
4.56
12.55
9.20
12.96
10.05
-19.92
-18.09
2.20
13.63
2.97
82.258
405,893,880
156,277,190
3,899,529
39,756
5,4005,2505,1004,9504,8004,6504,5004,3504,2004,0503,900
4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007
Variations in earnings and dividend per share Bankinter’s market capitalization trend
Mil
lion
s of
eu
ros
0.50
0.40
0.30
0.20
0.10
0.00
4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007
Eu
ros
0.22
0.08 4,079.230.07
4,849.66
0.18
EPS DPS
1T 2008_ingles.qxd:Bankinter 1T 08 CAST 28/4/08 08:30 Página 18
Financial Summary 1st Quarter March 08 18. People 19
18. People
Variation
03/31/2008 03/31/2007 Amount %
Number of employees (*)
Average length of service of employees (in years)
Average age (in years)
Employee distribution by gender (%)
Men
Woman
Workforce that has logged in from a remote system (%)
Internal job rotation (%)
External turnover (%)
Empl. with univ. degrees and postgrad. studies (%)
(*) Full-time equivalent
(*) Data on mobile Resource Turnover in last 12 months.
4,582 4,093 489.00 11.95
9.57 10.12 -0.55 -5.43
35.97 36.35 -0.38 -1.05
51.54 52.65 -1.12 -2.12
48.46 47.35 1.12 2.36
27.66 28.85 -1.19 -4.13
28.83 33.79 -4.96 -14.68
9.99 10.49 -0.50 -4.77
72.58 71.83 0.75 1.04
12.2
Number of employees (%)
increase of on 2007
1T 2008_ingles.qxd:Bankinter 1T 08 CAST 28/4/08 08:30 Página 19
Financial Summary 1st Quarter March 08 19. Quarterly events 20
19. Quarterly events
Annual General MeetingAt the 2008 Annual General Meeting, Bankinterconsolidated its high degree of compliance with therecommendations of the Unified Code of Good Governanceby applying new measures to reinforce its rules for goodgovernance and shareholder and market transparency.
The proposals approved by the Annual GeneralMeeting included most notably the ratification of theBank’s two new directors: Gonzalo de la Hoz (as a non-executive director) and Jaime Terceiro (as an independentdirector), who had been co-opted by Bankinter’s Board ofDirectors at its ordinary meeting in February to fill thevacancies that had existed on the Board until that date.The two appointments were agreed upon following aproposal by the Appointments and RemunerationCommittee and after a favourable report had been issuedby the Corporate Governance Committee.
The Annual General Meeting also approved the re-election, for four years, of José Ramón Arce as anindependent non-executive director.
Awards and AcknowledgementsBankinter’s intranet was included by Nielsen NormanGroup in the select group of “the ten best intranets”worldwide, based on the study conducted each year by thisinternationally renowned consultancy firm, in which theintranets of enterprises from all sectors of the economy areanalysed. The ten award-winning organisations are basedin six different countries and have workforces ranging from200 to 200,000 employees. Bankinter’s intranet was theonly Spanish intranet to be selected.
Furthermore, according to the 5th “Inter-industryWeb Accessibility Study” published in January by theDiscapnet Infoaccesibility Observatory, Bankinter has themost accessible private website (and the second mostaccessible site in the overall ranking). This study,performed by consultants from Technosite, the ONCEFoundation company responsible for managing Discapnet,evaluates a sample of around one hundred websites ofprivate and public sector enterprises, university portals,digital newspapers, etc. The evaluation technique appliedin the study is based on a selection of criteria that affectthe accessibility of the website (description of images,labelling of forms, use of frames, codes, etc.). According tothe report, Bankinter’s portal improved its accessibility by51% with respect to the results of the previous study,achieving the highest percentage rise of all the websitesanalysed, and outperformed 81% of them in terms offulfilment of the aforementioned criteria.
The now-traditional awards for the best financialproducts, distributed by the investors’ magazine “Mi Carterade Inversión”, gave Bankinter Gestión de Activos the prize
for the Best Equities Fund Manager. The extraordinaryprestige enjoyed by the “Mi Cartera de Inversión” awards isattributable to their long history and the fact that it is themagazine’s readers themselves who vote for the winners ineach of the categories.
Also, in what has come to be an habitual occurrence,the annual Lipper Cinco Días awards singled out two ofBankinter’s investment funds as the best products in theirrespective categories: “BK Sector Finanzas”, as the best fundin the last five years in the financial industry, and“Bankinter Fondtesoro Largo Plazo”, as the best performingmedium-term fixed-income fund at in the last three years.Similarly, the Investment Fund Awards of the “Expansión”newspaper recognised “BK Pequeñas Compañías” as thebest Mid&Small Caps International Shares fund.
Mobility and InternetBankinter has started to distribute value-added mobiletelephony services to its customers under an agreemententered into in December with KPN, the largest operator inthe Netherlands. The Bank’s customers can already sign upto an integrated fully personalised telephony and bankingservice, with transparent, competitive charges andBankinter’s customary standards of quality. A noteworthyfeature is the flat rate of EUR 0.14 per minute for calls toany landline (except special-rate numbers) or mobilephone, billed per second from the very first second. Themain advantage of the service is that it includes a cost ofEUR 0 for calls to the telephone number representing thehighest proportion of the customer’s expense each month(excluding special-rate numbers).
At the end of the quarter, Bankinter’s ‘Bank on themobile’ service completed its third year as a customertransaction and relationship channel. It accounts for 5% oftotal customer transactions with the Bank and close to160,000 customers have already used one or other of itsapplications. The latest development in this service hasbeen the launch of a version compatible with Apple’siPhone handset and iPod Touch multimedia player.Customers can use this version to make accounttransactions enjoying all the usability features of theseelectronic devices.
Bankinter has incorporated an electronic national IDcard log-in system to its Internet operations. This newsystem for identification of customers when they log in toBankinter.com will, on the one hand, raise the level ofsecurity for customers in their on-line transactions and, onthe other, represent the first step towards theimplementation, in the short term, of digital transactionsigning. The possibility of accessing the website using anelectronic national ID card will co-exist with user-name andpassword-based access, the only system available to date,so that customers will be able to choose to consult theiraccounts using one or other system.
1T 2008_ingles.qxd:Bankinter 1T 08 CAST 28/4/08 08:30 Página 20
Bankinter SAPaseo de la Castellana, 2928046 Madrid (Spain)T. +34 913 397 500F. +34 913 398 323Telex. 42760 BANKI ESwift: BKBK ES MM
www.bankinter.com
Financial Summary1st quarter · March 2008
Flexibility
cobertes 1T ING.qxd:Maquetación 1 17/4/08 18:44 Página 1