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1. Company Snapshot

1.a. Company Description

Bankinter, S.A. provides various banking products and services to individuals and corporate customers, and small- and medium-sized enterprises in Spain.It offers salary, non-salary, professional, basic, currency, pension, business, and current accounts, as well as deposit products; and mortgages and loan products, as well as financing services.The company also provides saving and investment products, including profiled funds, sustainable investment funds, other managers funds, pension funds, and themed funds, as well as funds for beginners; regular investment plans; and advisory, customized investment, wealth management, and alternative investment products and services.


In addition, it offers accident, home, life, funeral, health, mortgage payment protection, property, personal, and motor insurance products, as well as business insurance products.Further, the company provides various services, such as estate administration, switch, asset management, accounts management, and transfer services, as well as real estate and brokerage services.The company also offers retail, personal, private, commercial, and corporate banking products, as well as remote banking services.


As of December 31, 2021, it operated through a network of 446 branches and 379 agents.The company was formerly known as Banco Intercontinental Español, S.A. and changed its name to Bankinter, S.A. in July 1990.The company was founded in 1965 and is headquartered in Madrid, Spain.

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1.b. Last Insights on BKT

Bankinter, S.A.'s recent performance is driven by favorable analyst coverage and expectations of resilient economies such as Spain and Portugal. RBC Capital Markets initiated coverage on the bank, highlighting its potential to outperform peers due to growing loan and fee income. Additionally, Bankinter's exposure to these economies, which are projected to grow at double the pace of the Euro Area, presents a promising outlook. This analyst endorsement, coupled with the bank's stable dividend yield, offers investors a compelling opportunity for growth and income in a challenging European economic environment.

1.c. Company Highlights

2. Bankinter's Strong 2025 Performance Driven by Diversified Growth

Bankinter reported a net profit of EUR 1,090 million, representing a 14% growth over the previous year, with diversified growth in both geographies and business lines. The bank's EPS came in at 0.3099, beating estimates of 0.3058. Revenue growth was driven by a 9% increase in total business volume, 5% in lending, and 6% in customer funds. The bank's gross margin grew by 5%, with fee income from services increasing by 11%. The efficiency ratio stood at 36%, the best in the industry, while the ROTE was 20%, the highest in the series.

Publication Date: Feb -04

📋 Highlights
  • Title: - Description with figures
  • Net Profit Growth: - EUR 1,090 million net profit, 14% year-over-year increase.
  • Efficiency Ratio: - 36.1% efficiency ratio, best in the industry, with target to reduce below 35% in 2026.
  • Digital Client Acquisition: - Over 50% of new clients acquired via digital channels, with EUR 12 billion in customer funds (64% growth).
  • ROTE Performance: - Return on tangible equity (ROTE) of 20%, highest in the bank’s history.
  • Fee Income Growth: - 11% increase in fee income from services, driven by 19% growth in off-balance sheet products.

Digital Transformation and Client Acquisition

The bank's digital franchise has become a scalable and cost-efficient acquisition engine, with more than half of new client acquisitions coming from the digital channel. Customer funds grew 64% to EUR 12 billion, driven by the digital channel. As Gloria Portero highlighted, the bank is committed to investing in technology to achieve tangible benefits from AI initiatives, driving competitive differentiation and operational efficiencies.

Segment Performance and Outlook

The Wealth Management business showed a high-quality affluent client base, driving exceptional incremental wealth volumes up EUR 21 billion this year, a 16% increase. Net new money reached the EUR 10 billion level milestone, well above historical ranges. For 2026, the bank expects solid macro growth across all regions, with volumes growing at similar levels as in 2025. Lending volumes are expected to grow at mid-single-digit growth rates, while deposit volumes will target keeping the liquidity ratio stable.

Valuation and Dividend Yield

With a P/TBV ratio of 2.08, Bankinter's valuation appears reasonable compared to its peers. The bank's dividend yield stands at 3.49%, providing a relatively attractive return for investors. As the bank continues to focus on high-quality volume growth and diversification of income, its commitment to delivering positive operating jaws and reducing cost-to-income levels below 35% for the year is expected to drive further growth.

Guidance and Key Drivers

The bank is targeting a customer average margin recovery of 270 basis points, with fee growth targeted at high single digits for the year. The cost of risk is expected to remain stable at current levels of around 33 basis points. Analysts estimate next year's revenue growth at 5.5%, in line with the bank's guidance. With its strong performance and diversified growth drivers, Bankinter is well-positioned for continued success in 2026.

3. NewsRoom

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Assessing Bankinter (BME:BKT) Valuation After Strong Long Term Returns And Recent Share Price Pullback

Feb -13

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Turbo Energy completes restructuring of bank financing

Feb -10

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Turbo Energy Strengthens Financial Position Through Long-Term Bank Financing Restructuring

Feb -09

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Bankinter (BKNIY) Upgraded to Buy: What Does It Mean for the Stock?

Feb -03

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Why Bankinter SA (BKNIY) is a Top Dividend Stock for Your Portfolio

Jan -23

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European Dividend Stocks To Enhance Your Portfolio

Jan -20

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Bankinter (BME:BKT) Valuation Check As Bit2Me Funding Highlights Digital Asset Ambitions

Jan -15

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Spain’s Bankinter Joins Bit2Me’s €30M Tether-Led Round in Major Crypto Banking Move

Jan -14

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.49%)

6. Segments

Business Bank

Expected Growth: 4.5%

Business Banking at Bankinter, S.A. achieved 4.5% growth driven by increased lending to SMEs, expansion into new regions, and digital transformation initiatives. Strong risk management and efficient cost control also contributed to growth. Additionally, strategic partnerships and innovative product offerings enhanced customer experience, attracting new clients and increasing wallet share.

Commercial Bank

Expected Growth: 4.8%

Bankinter's 4.8% growth is driven by its strong commercial banking segment, fueled by a robust loan portfolio growth of 6.2%, particularly in the mortgage and consumer credit segments. Additionally, the bank's solid deposit growth of 5.5% and effective cost control measures have contributed to its growth momentum.

BK Portugal

Expected Growth: 4.2%

BK Portugal's 4.2% growth is driven by a strong economy, rising consumer confidence, and a growing demand for digital banking services. Additionally, Bankinter's strategic expansion into the Portuguese market, coupled with its robust risk management and cost control measures, have contributed to the segment's growth.

BKCF

Expected Growth: 4.0%

Bankinter's 4.0% growth is driven by its strong digital transformation, increasing online banking penetration, and growing demand for consumer credit. Additionally, the bank's solid asset quality, efficient cost management, and strategic expansion into new markets also contribute to its growth momentum.

Other

Expected Growth: 3.8%

Bankinter's 3.8% growth is driven by its diversified business model, strong digital transformation, and solid asset quality. The bank's focus on customer experience, innovative products, and strategic partnerships have contributed to its growth. Additionally, its robust risk management and efficient cost structure have enabled the bank to maintain a strong financial position, supporting its growth momentum.

BK Ireland

Expected Growth: 4.6%

BK Ireland's 4.6% growth is driven by a strong mortgage lending market, fueled by low interest rates and government incentives. Additionally, the bank's digital transformation and cost-cutting initiatives have improved operational efficiency, allowing for increased investment in customer acquisition and retention. Furthermore, a favorable economic environment and a growing demand for consumer credit have also contributed to the segment's growth.

7. Detailed Products

Personal Banking

Bankinter's personal banking services provide customers with a range of products and services to manage their daily finances, including current and savings accounts, credit cards, and personal loans.

Business Banking

Bankinter's business banking services offer customized solutions for businesses, including cash management, trade finance, and corporate lending.

Private Banking

Bankinter's private banking services provide high net worth individuals with personalized investment advice, wealth management, and estate planning.

Investment Banking

Bankinter's investment banking services offer advisory services for mergers and acquisitions, equity and debt capital markets, and restructuring.

Asset Management

Bankinter's asset management services provide investment solutions for individuals and institutions, including mutual funds, pension plans, and discretionary portfolio management.

Insurance

Bankinter's insurance services offer a range of life and non-life insurance products, including life insurance, home insurance, and car insurance.

Digital Banking

Bankinter's digital banking services provide customers with online and mobile banking platforms to manage their finances, make transactions, and access financial information.

8. Bankinter, S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bankinter, S.A. faces moderate threat from substitutes due to the presence of alternative financial institutions and digital payment platforms.

Bargaining Power Of Customers

Bankinter, S.A. has a large customer base, but customers have significant bargaining power due to the ease of switching to alternative banks and financial institutions.

Bargaining Power Of Suppliers

Bankinter, S.A. has a diversified supplier base, reducing the bargaining power of individual suppliers, and the company has a strong negotiating position.

Threat Of New Entrants

The banking industry has high barriers to entry, and regulatory requirements make it difficult for new entrants to establish themselves, reducing the threat of new entrants for Bankinter, S.A.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players, leading to a high intensity of rivalry for Bankinter, S.A.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 79.01%
Debt Cost 7.90%
Equity Weight 20.99%
Equity Cost 7.90%
WACC 7.90%
Leverage 376.44%

11. Quality Control: Bankinter, S.A. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Yield: 8.1

Momentum: 8.5

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ING Bank Slaski

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Quality: 4.9

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Bankinter

A-Score: 6.4/10

Value: 5.1

Growth: 6.9

Quality: 6.3

Yield: 7.5

Momentum: 5.0

Volatility: 7.3

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A-Score: 5.5/10

Value: 7.0

Growth: 4.1

Quality: 3.1

Yield: 6.2

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Volatility: 3.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

14.39$

Current Price

14.39$

Potential

-0.00%

Expected Cash-Flows