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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 Q3 2025 Earnings: Strong Commercial Activity Drives Profit Growth

Bankinter reported a post-tax profit of EUR 812 million for Q3 2025, representing an 11% year-on-year increase, driven by robust commercial activity, growth in credit and loans, and retail deposits. The bank's net interest income improved, with a contraction of 3.5% compared to 5% in the previous quarter, and a resilient customer margin of 2.7%. Operating income grew 4.7%, while cost of risk and related provisions declined 10% year-on-year. Earnings per share (EPS) came in at 0.285, slightly below estimates of 0.308.

Publication Date: Oct -26

📋 Highlights
  • Post-Tax Profit Growth:: EUR 812 million, up 11% YoY, driven by credit expansion and retail deposit growth.
  • Fee and Commission Surge:: 10.6% growth, fueled by fund management and brokerage performance.
  • Capital Strength:: CET1 ratio at 12.94%, with NPL ratio dropping to 2.05% (17 bps decline YoY).
  • International Growth:: Assets under management hit EUR 234B, +9% YoY, with Portugal (+12%) and Ireland (+20%) outperforming.
  • Net Interest Income Resilience:: Contraction narrowed to 3.5% (from 5% in Q2), with customer margin stable at 2.7%.

Revenue Growth and Margin Analysis

The bank's revenue growth was driven by a 5% increase in credit and loans, as well as retail deposits, while off-balance sheet balances rose 20% year-on-year. Fees and commissions grew 10.6%, with a strong performance in fund management and brokerage services. The bank's guidance for fee growth has been increased to double-digit growth, excluding performance fees.

Asset Quality and Capital Position

The CET1 ratio stood at 12.94%, and the NPL ratio dropped to 2.05%, down 17 basis points from last year. The bank's EBA stress test results showed the lowest level of capital depletion among Spanish and Eurozone listed banks. The capital levels are expected to stay strong, with a possible review of the dividend policy if the trend continues.

Valuation and Dividend Yield

With a Price-to-Tangible Book Value (P/TBV) of approximately 1.84, and a Dividend Yield of 4.48%, Bankinter's valuation appears reasonable. The bank's Net Interest Margin (NIM) remains resilient at 2.7%. Analysts estimate next year's revenue growth at 4.9%, indicating a stable outlook for the bank.

Business Outlook and Growth Prospects

The bank aims to maintain a mid-single-digit growth rate in loan volumes and deposits, with assets under management following the same strong performance. The international credit book is growing faster, driven by Spanish clients going abroad and the development of new products and services. Wealth Management business growth is expected to be sustainable, with €8-10 billion in net new money annually.

Cost Management and Efficiency

The bank will continue to manage costs, with a mid-single-digit growth target for 2025. The cost of risk is expected to fall below 35 basis points for the entire year. Investments in artificial intelligence may lead to a slight decrease in headcount in Spain.

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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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Value: 6.2

Growth: 7.2

Quality: 7.4

Yield: 8.1

Momentum: 9.5

Volatility: 6.3

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Bankinter

A-Score: 7.4/10

Value: 7.1

Growth: 5.3

Quality: 6.8

Yield: 8.1

Momentum: 10.0

Volatility: 7.3

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Value: 7.8

Growth: 4.8

Quality: 6.5

Yield: 8.8

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Volatility: 8.3

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A-Score: 7.1/10

Value: 6.5

Growth: 9.1

Quality: 7.4

Yield: 7.5

Momentum: 6.5

Volatility: 5.7

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A-Score: 6.8/10

Value: 5.1

Growth: 7.4

Quality: 6.8

Yield: 4.4

Momentum: 8.0

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Raiffeisen Bank International

A-Score: 6.2/10

Value: 9.4

Growth: 3.8

Quality: 5.4

Yield: 6.9

Momentum: 8.5

Volatility: 3.3

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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

13.65$

Current Price

13.65$

Potential

-0.00%

Expected Cash-Flows