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Bankinter profit falls 10.1% to March after provisioning 107.3 million for the Covid-19


Bankinter reduces net profit by 10.1% until March, to 130.3 million, due to greater provisions to prevent future business deterioration due to the Covid-19 economic crisis.

The entity explained that the result before taxes of the banking activity it settled at the end of the quarter with 140 million euros, 17.2% less than in March 2019, and a net profit of 101.1 million, 17.4% lower, mainly due to the greater provisions made to prevent a possible deterioration of the business due to the coronavirus crisis; provisions totaling 107.3 million euros compared to 55.1 million in the same period of 2019.

Added to the profit figures of the banking activity 29.1 million euros of result from Línea Directa, Bankinter's net profit reached March 31 130.3 million euros, which is 10.1% less than in the same period of 2019.

Bankinter has indicated that all account margins grow at a good pace. The gross margin it reaches 436.3 million euros, 8.2% more, coming entirely from the business with clients. The interest margin totals 307.8 million euros, representing 14.1% more than the same date in 2019. For its part, the operating margin concludes, as of March 31, at 247.3 million euros, 10.3% more than a year ago

"Bankinter starts 2020 showing an activity and a business with clients that maintain all the strength and vigor of the past year despite the difficulties of the current interest rate environment and the still incipient economic impact caused by the coronavirus", has indicated the bank in the note.

Regarding the main ratios, the return on equity, ROE, stood at 10.23%; and solvency marked at the end of the quarter a fully loaded CET1 capital ratio of 11.47%, 327 basic points above the capital requirement that the European Central Bank has demanded from the entity for the current year.

Regarding liquidity, the commercial gap (difference between credit investment and resources raised from customers) stood at 800 million euros, with a deposit-to-credit ratio of 99.5%.

Bankinter anticipates maturity of wholesale issues of 800 million euros for this year, 200 million for 2021 and 1,000 million for 2022. To face them, the bank has indicated that It has liquid assets worth 13.6 billion euros and a capacity to issue bonds for 6.2 billion euros.

Likewise, the entity has highlighted the quality of assets, which makes it worthy of "one of the strongest positions in the sector." Thus the NPL ratio stands at 2.58%, compared to 2.87% a year ago, and 7 basis points more than at the end of 2019.

And in terms of foreclosed real estate assets, they fall to a gross value of 274.3 million euros, compared to 328.6 million a year ago. The coverage of these awarded is 44.5%.

As for Bankinter's balance sheet, the group's total assets amounted to 86,586.9 million euros at March 31, 10.6% more than in the first quarter of 2019.

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