Bankinter S.A. — Earnings Release 2014

Mar 31, 2014

Financial Summary March 2014

Index

• 1. Economic and financial environment

2 3 4 6 7

1. Financial highlights 3. Results 4. Balance sheet 5. Customer funds and lending

8 8 9 10 11

movement

1. Consolidated income statements 9. Quarterly statements of

income

1. Shareholders equity and rating

2. Fees

3. Quality of assets 7. Doubtful debts

4. Yields and costs 12. Quarterly yields and costs

12 13 14 14 15

1. Contribution by business area

2. Creation of shareholder value

16 17 17 19 21

responsibility

1. Variation in net worth

2. People 18. Quality of service 19. Quarterly events 20. Corporate

2. Financial highlights thousands euros

			Variation
Balance sheet	31/03/2014	31/03/2013	Amount	%
Total assets	55,196,308	57,756,300	-2,559,992	-4.43
Credit facilities and loans	40,966,593	41,015,683	-49,090	-0.12
Controlled resources	51,203,442	46,435,603	4,767,839	10.27
On-balance sheet	38,049,399	37,365,916	683,483	1.83
Retail resources excl. repos	27,905,263	25,179,557	2,725,706	10.83
Negotiable securities, wholesalers	8,980,496	10,485,207	-1,504,711	-14.35
Off-balance-sheet managed funds	13,154,043	9,069,687	4,084,356	45.03
Equity	3,493,803	3,269,809	223,994	6.85
Earnings
Net interest income	169,086	132,625	36,461	27.49
Gross operating Income	360,944	320,594	40,350	12.59
Profit (loss) before impairment	178,384	153,690	24,694	16.07
Income before taxes	85,717	67,794	17,923	26.44
Net income attributed to the Group	60,002	50,371	9,631	19.12
RAT IOS (%)
Nonperfor. loans	5.05	4.50	0.55	12.22
Recorded allowance/nonperforming loans	42.58	47.52	-4.93	-10.38
Cost to income	45.22	46.51	-1.28	-2.76
ROE	7.25	6.30	0.95	15.08
ROA	0.44	0.35	0.09	25.01
CET 1	12.00	12.04*	-0.04	-0.31
Bankinter shares
Number of shares	895,583,800	563,806,141	331,777,659	58.85
Closing price (€)	5.84	3.77	2.07	54.83
EPS (€)	0.07	0.09	-0.02	-22.22
DPS (€)	0.02	0.03	-0.01	-33.33
Branches and centers
Number of branches	360	367	-7	-1.91
Sales offices
Corporate	48	46	2	4.35
SME	75	76	-1	-1.32
Private Banking	40	38	2	5.26
Corporate Partnerships	372	359	13	3.62
Number of agents	475	493	-18	-3.65
Telephone banking and Internet	3	3	0	0.00
Headcount
Number of employees	4,119	4,071	48	1.18
LDA employees	1,896	1,913	-17	-0.89

*Figure recalculated in December 2013 for comparison with March 2014, as per the new regulation in force since 01/01/2014.

4. Balance sheet

	Var. 03/14-12/13			Var.03/14-03/13
	31/03/2014	31/12/2013	Thousand €	%	31/03/2013	Thousand €	%
ASSETS
Cash on hand and on deposits at central banks	229,271	886,118	-656,848	-74.13	306,231	-76,960	-25.13
Trading portfolio	5,235,739	4,346,573	889,166	20.46	2,751,355	2,484,384	90.30
Other financial assets at fair value with changes to P&L account	21,223	18,158	3,065	16.88	44,913	-23,690	-52.75
Available for sale portfolio	2,827,620	2,483,171	344,449	13.87	6,960,159	-4,132,539	-59.37
Loans	42,399,853	42,607,050	-207,197	-0.49	43,254,811	-854,958	-1.98
Due from banks	1,291,404	1,182,216	109,188	9.24	970,826	320,578	33.02
Counterparty bodies	0	110,559	-110,559	-100.00	1,176,251	-1,176,251	-100.00
Customer loans	40,966,593	41,196,451	-229,857	-0.56	41,015,683	-49,090	-0.12
Debt instruments	141,856	117,825	24,031	20.40	92,051	49,805	54.11
Investment portfolio held to maturity	2,891,645	3,220,721	-329,076	-10.22	2,750,897	140,747	5.12
Hedge derivatives and macro-derivatives	94,861	84,481	10,380	12.29	128,828	-33,967	-26.37
Other assets available for sale	372,328	369,210	3,119	0.84	393,495	-21,167	-5.38
Associates	41,377	36,362	5,015	13.79	42,043	-667	-1.59
Reinsurance assets	4,679	4,571	109	2.38	6,731	-2,052	-30.48
Property, plant and equipment	431,614	434,931	-3,318	-0.76	436,771	-5,157	-1.18
Intangible assets	294,769	300,703	-5,934	-1.97	311,428	-16,659	-5.35
Fiscal assets and others	351,329	343,613	7,716	2.25	368,636	-17,307	-4.69
TOTAL Asse ts	55,196,308	55,135,662	60,646	0.11	57,756,300	-2,559,992	-4.43
Liabilities
Trading portfolio	2,070,714	1,751,721	318,993	18.21	2,201,042	-130,327	-5.92
Financial liabilities at amortized costs	48,566,515	48,912,731	-346,216	-0.71	51,260,746	-2,694,232	-5.26
Hedge derivatives and macro-derivatives	26,778	25,608	1,170	4.57	40,110	-13,332	-33.24
Insurance liabilities	598,017	607,794	-9,777	-1.61	608,094	-10,077	-1.66
Write-offs and provisions	66,507	53,753	12,754	23.73	47,386	19,121	40.35
Tax liabilities and others	373,974	380,511	-6,537	-1.72	329,114	44,860	13.63
TOTAL Liabilities	51,702,505	51,732,118	-29,613	-0.06	54,486,491	-2,783,986	-5.11
Valuation adjustments	78,389	43,172	35,217	81.57	23,026	55,363	240.44
Equity	3,415,414	3,360,371	55,043	1.64	3,246,783	168,631	5.19
Total equity	3,493,803	3,403,544	90,259	2.65	3,269,809	223,994	6.85
Total equity and liabilities	55,196,308	55,135,662	60,646	0.11	57,756,300	-2,559,992	-4.43

5. Customer funds and lending

			Variation
	31/03/2014	31/03/2013	Amount	%
Retail funds	27,905,263	25,179,557	2,725,706	10.83
Government deposits	363,624	443,430	-79,806	-18.00
Private Sector Deposits	25,550,433	21,768,783	3,781,650	17.37
Current accounts	13,974,753	11,380,352	2,594,401	22.80
Term deposits	11,442,444	10,261,513	1,180,931	11.51
Valuation adjustments	133,236	126,918	6,318	4.98
Other sight liabilities	326,243	255,496	70,747	27.69
Online marketable securities	1,664,963	2,711,848	-1,046,886	-38.60
Temporary assignment of assets	1,163,640	1,701,152	-537,512	-31.60
Wholesale marketable securities	8,980,496	10,485,207	-1,504,711	-14.35
Promissory notes and bills of exchange	644,449	685,784	-41,336	-6.03
Securitised notes	2,506,545	2,738,953	-232,408	-8.49
Mortgage-backed bonds	5,581,312	6,724,808	-1,143,495	-17.00
Senior notes	179,840	166,549	13,291	7.98
Valuation adjustments	68,350	169,112	-100,762	-59.58
Total	38,049,399	37,365,916	683,483	1.83
Off-balance sheet resources	13,154,043	9,069,687	4,084,356	45.03
Own investment funds	6,496,578	4,349,248	2,147,330	49.37
External investment funds sold	2,128,341	1,663,461	464,880	27.95
Pension funds	1,741,247	1,452,419	288,828	19.89
Management of SICAVs (open-ended collective investment companies)	2,787,876	1,604,559	1,183,317	73.75
Loans to government bodies	2,149,623	1,520,504	629,119	41.38
Other sectors	38,816,970	39,495,179	-678,209	-1.72
Commercial lending	1,872,985	2,068,497	-195,512	-9.45
Receivables secured by collateral	25,100,501	26,717,008	-1,616,507	-6.05
Other non-current receivables	8,667,870	7,868,683	799,188	10.16
Personal loans	4,288,378	3,879,731	408,647	10.53
Overdraft facilities	4,103,738	3,724,425	379,313	10.18
Other non-current receivables	275,754	264,526	11,228	4.24
Finance leases	789,981	773,434	16,545	2.14
Doubtful debts	2,255,970	2,006,546	249,424	12.43
Valuation adjustments	-982,974	-973,494	-9,480	0.97
Other lending	1,112,637	1,034,504	78,132	7.55
Total customer lending	40,966,593	41,015,683	-49,090	-0.12
Risk off the balance sheet	9,519,918	9,085,746	434,172	4.78
Contingent risks	2,407,559	2,443,891	-36,331	-1.49
Available to third parties	7,112,359	6,641,855	470,504	7.08

6. Quality of assets thousands euros

				Variation
	31/03/2014	31/03/2013	Amount	%
Computable risk	45,518,245	45,251,169	267,076	0.59
Doubtful risk (including contingent risks)	2,296,851	2,034,927	261,924	12.87
Required provisions	978,084	966,904	11,180	1.16
NPL ratio (%)	5.05	4.50	0.55	12.22
Coverage rate (%)	42.58	47.52	-4.93	-10.38
Repossessed assets	629,047	627,912	1,135	0.18
Provision for foreclosed assets	256,719	234,416	22,302	9.51
Foreclosed assets coverage(%)	40.81	37.33	3.48	9.32

7. Doubtful debts movement thousands euros

			Variation
Doubtful debts movement (including contingent risks)	31/03/2014	31/03/2013	Amount	%
Initial balance	2,275,370	1,984,028	291,342	14.68
Net entries	51,292	103,553	-52,261	-50.47
Write downs	29,811	52,654	-22,843	-43.38
Final balance	2,296,851	2,034,927	261,924	12.87

8. Consolidated income statements

	31/03/2014	31/03/2013	Variation
	Amount	Amount	Amount	%
Interest and related income	343,799	376,164	-32,365	-8.60
Interest and related charges	-174,713	-243,539	68,826	-28.26
Net interest income	169,086	132,625	36,461	27.49
Divident income	3,217	2,199	1,018	46.31
Equity method	3,808	3,553	256	7.21
Net fees and commissions	70,811	55,943	14,868	26.58
Trading income	49,196	66,636	-17,440	-26.17
Other operating income/expense	64,826	59,639	5,187	8.70
Gross operating income	360,944	320,594	40,350	12.59
Personnel expenses	-94,274	-86,857	-7,417	8.54
General expenses / Amortization	-88,287	-80,047	-8,239	10.29
Operating profit (loss) before impairment	178,384	153,690	24,694	16.07
Additions to provisions	-11,441	113	-11,554	n,r
Asset losses	-68,162	-74,662	6,500	-8.71
Operating profit (loss) net of impairment	98,781	79,142	19,639	24.82
Gain / losses on disposals of assets	-13,064	-11,348	-1,716	15.12
Profit before taxes	85,717	67,794	17,923	26.44
Tax on income	-25,715	-17,423	-8,292	47.59
Net income	60,002	50,371	9,631	19.12

9. Quarterly statements of income thousands euros

	2014	Variation %
	1Q14	1Q14/1Q13	1Q14/4Q13	4Q13	3Q13	2Q13	1Q13
Interest and related income	343,799	-8.60	-5.17	362,527	370,103	367,436	376,164
Interest and related charges	-174,713	-28.26	-7.34	-188,548	-196,626	-211,614	-243,539
Net interest income	169,086	27.49	-2.81	173,979	173,477	155,822	132,625
Divident income	3,217	46.31	221.09	1,002	1,949	3,796	2,199
Equity method	3,808	7.21	-15.97	4,532	4,046	3,415	3,553
Net fees and commissions	70,811	26.58	-0.62	71,255	61,477	60,345	55,943
Trading income	49,196	-26.17	-33.56	74,045	36,060	52,014	66,636
Other operating income/expenses	64,826	8.70	13.27	57,229	58,973	61,451	59,639
Gross operating income	360,944	12.59	-5.52	382,042	335,981	336,844	320,594
Personnel expenses	-94,274	8.54	-3.00	-97,193	-85,484	-87,299	-86,857
General expenses / Amortization	-88,287	10.29	7.86	-81,852	-80,166	-80,948	-80,047
Operating profit (loss) before impairment	178,384	16.07	-12.12	202,997	170,331	168,597	153,690
Additions to provisions	-11,441	n,r	79.27	-6,382	-4,940	-3,050	113
Asset losses	-68,162	-8.71	20.71	-56,470	-81,925	-76,911	-74,662
Operating profit (loss) net of	98,781	24.82	-29.51	140,145	83,465	88,637	79,142
impairment
Gain / losses on disposals of assets	-13,064	15.12	-75.66	-53,667	-11,517	-17,289	-11,348
Profit before taxes	85,717	26.44	-0.88	86,477	71,948	71,347	67,794
Tax on profit	-25,715	47.59	-4.26	-26,858	-18,440	-19,422	-17,423
Net income	60,002	19.12	0.64	59,619	53,509	51,926	50,371

l Gross margin

l Cost to income

10. Fees thousands euros

				Variation
	31/03/2014	31/03/2013	Amount	%
Fees paid	16,728	15,759	969	6.15
Fees receive d
Guarantee and L/C	7,373	7,224	149	2.07
Foreign exchange	2,090	1,762	328	18.62
Due to contingent commitment	4,194	3,514	680	19.36
Payment and collection services	16,891	16,468	423	2.57
Brokerage services	16,314	11,175	5,138	45.98
Underwritting and management fees	1,221	176	1,045	593.29
Buy/sell orders	8,110	5,253	2,857	54.38
Custody and administration	5,459	4,738	721	15.23
Wealth management	1,523	1,008	515	51.08
Non-banking financial products	28,965	22,476	6,489	28.87
Asset Management	17,732	11,753	5,979	50.87
Insurance and Equity	11,233	10,723	510	4.75
Other commissions	11,712	9,083	2,629	28.94
Total fees received	87,539	71,702	15,837	22.09
Fees and commissio ns net	70,811	55,943	14,868	26.58

11. Yields and costsin %

	31/03/2014		31/03/2013
	weighting	rate	weighting	rate
Cash on hand and on deposit at central banks	0.84	0.15	0.71	0.42
Due from banks	4.97	0.28	3.59	0.43
Credit facilities and loans (a)	73.17	2.68	70.76	2.80
Debt securities	14.24	3.61	19.55	3.26
Equity portfolio	0.61	3.86	0.55	2.80
Average earnings assets (b)	93.84	2.71	95.17	2.79
Other assets	6.16		4.83
Ave rage total asse ts	100.00	2.55	100.00	2.66
Due to central banks	5.62	0.25	15.16	0.75
Due to banks	12.26	1.91	10.64	2.09
Customer funds (c)	68.40	1.42	63.31	2.05
Customer deposits	50.65	1.24	42.91	2.04
Marketable debt securities	17.75	1.94	20.41	2.07
Subordinated liabilities	1.12	4.94	1.33	4.30
Average interest bearing funds (d)	87.40	1.47	90.44	1.87
Other liabilities	12.60		9.56
Ave rage total funds	100.00	1.28	100.00	1.70
Customer spread (a-c)		1.26		0.75
Net interest margin (b-d)		1.25		0.92

12. Quarterly yields and costsin %

	1Q14		4Q13		3Q13		2Q13		1Q13
	weighting	rate	weighting	rate	weighting	rate	weighting	rate	weighting	rate
Cash on hand and on deposit at central bank	0.84	0.15	0.77	0.22	0.71	0.29	0.55	0.57	0.71	0.42
Due from banks	4.97	0.28	4.46	0.49	3.49	0.52	3.28	0.44	3.59	0.43
Credit facilities and loans (a)	73.17	2.68	72.29	2.66	70.10	2.65	69.71	2.70	70.76	2.80
Debt securities	14.24	3.61	16.91	3.46	20.18	3.16	20.79	3.10	19.55	3.26
Equity portfolio	0.61	3.86	0.57	1.24	0.58	2.33	0.57	4.62	0.55	2.80
Average earnings assets (b)	93.84	2.71	95.01	2.71	95.05	2.69	94.91	2.73	95.17	2.79
Other assets	6.16		4.99		4.95		5.09		4.83
Ave rage total asse ts	100.00	2.55	100.00	2.57	100.00	2.56	100.00	2.59	100.00	2.66
Due to central banks	5.62	0.25	9.61	0.40	12.27	0.50	12.32	0.61	15.16	0.75
Due to banks	12.26	1.91	11.97	1.89	14.01	1.61	13.85	1.67	10.64	2.09
Customer funds (c)	68.40	1.42	66.16	1.51	62.26	1.61	62.39	1.77	63.31	2.05
Customer deposits	50.65	1.24	49.33	1.38	44.63	1.50	44.14	1.67	42.91	2.04
Marketable debt securities	17.75	1.94	16.83	1.91	17.62	1.89	18.25	2.02	20.41	2.07
Subordinated liabilities	1.12	4.94	1.12	5.02	1.21	4.75	1.31	4.48	1.33	4.30
Average interest bearing funds (d)	87.40	1.47	88.86	1.50	89.75	1.50	89.87	1.64	90.44	1.87
Other liabilities	12.60		11.14		10.25		10.13		9.56
Ave rage total funds	100.00	1.28	100.00	1.33	100.00	1.35	100.00	1.47	100.00	1.70
Customer spread (a-c)		1.26		1.15		1.04		0.93		0.75
Net interest margin (b-d)		1.25		1.21		1.19		1.09		0.92
Quarterly ATA (Thousand €)	55,254,371		56,117,481		57,768,717		57,439,351		57,770,293

l Cost of customer resources

l Customer margin for the quarter

l Return on customer lending

13. Contribution by business area

			Variation
	31/03/2014	31/03/2013	Amount	%
Customer segments	198,188	145,765	52,423	35.96
Commercial and Private Banking	71,555	49,211	22,343	45.40
Corporate Banking	126,633	96,554	30,079	31.15
Capital market	91,033	110,451	-19,418	-17.58
Línea Directa	87,991	80,269	7,722	9.62
Corporate Centre	-16,268	-15,891	-377	2.37
Gross Margin	360,944	320,594	40,350	12.59

thousands euros

14. Shareholders equity and rating thousands euros

			Variation
	31/03/2014	31/12/2013	Amount	%
Capital and Reserves	3,331,089	3,300,372	30,717	0.93
Treasury stock	-2,956	-511	-2,444	477.95
Intangible and other assets	-204,427	-215,586	11,160	-5.18
CET1 instruments	3,123,706	3,084,274	39,432	1.28
CET1 deductions	-94,515	-86,632	-7,883	9.10
AT1 instruments	61,284	61,284	0	0.00
AT1 deductions	-209,459	-194,431	-15,027	7.73
Subordinated financing	440,628	443,524	-2,896	-0.65
Other items	12,169	12,169	0	0.00
TIER II instruments	452,797	455,693	-2,896	-0.64
TIER II deductions	-168,600	-152,096	-16,504	10.85
Total Equity	3,165,213	3,168,091	-2,878	-0.09
Risk-weighted assets	24,010,309	23,798,935	211,374	0.89
CET 1 (%)	12.00	12.04	-0.04	-0.31
Tier 1 (%)	12.00	12.04	-0.04	-0.31
Tier 2 (%)	1.18	1.28	-0.09	-7.21
Solvency ratio (%)	13.18	13.31	-0.13	-0.97
Surplus capital	1,800,553	1,793,542	7,010	0.39

	Short term	Long term	Outlook	Date
Moody's	Prime-3	Baa3	Stable	April 2014
Standard & Poor's	B	BB	Positive	December 2013
DBRS	R-1 (low)	A (low)	Negative	November 2012

15. Variation in net worth

3,231,096
-67,977
40,120
215,424
-15,120
3,403,544
3,403,544
-1,254
35,217
60,002
-3,706
3,493,803

16. Creation of shareholder value

Period per share data (€)
Earnings per share	0.07
Diluted earnings per share	0.07
Dividend per share	0.02
Book value per share	3.90
Price at beginning of year	4.99
Low	4.93
High	6.09
Closing price	5.84
Appreciation in last quarter (%)	17.10
Appreciation in last 12 months (%)	54.83
Past 12 months' revaluation adjustment for bonus issue (%)	140.84
Stock market ratios
Price/Book value (times)	1.50
PER (price/earnings, times)	21.48
Dividend yield (%)	1.04
Number of shareholders	69,680
Number of shares	895,583,800
Number of shares held by nonresidents	341,546,009
Average daily trading (number of shares)	5,352,531
Average daily trading (thousands of euros)	30,407
Market capitalisation (thousand of euros)	5,230,209

l Ibex 35

l Bankinter

l Eurostoxx Banca (SX7P)

Note: Share prices prior to the bonus issue have been adjusted so as to be comparable with the Ibex 35 and Euro Stoxx Banks.

17. People

	31/03/2014	31/03/2013	Variación	%
Number of employees (*)	4,119	4,071	48.00	1.18
Average length of service of employees (in years)	13.57	13.00	0.57	4.38
Average age (in years)	40.92	40.00	0.92	2.30
Employee distribution by gender (%)
Men	49.26	48.93	0.33	0.67
Women	50.74	51.07	-0.33	-0.65
Internal job rotation (%)	18.86	20.32	-1.46	-7.21
External turnover (%)	3.74	5.19	-1.45	-27.90
Percentage of the headcount with university degrees (%)	78.84	74.45	4.39	5.90

(*)Data on mobile Resource Turnover in last 12 months.

18. Quality of service

l Agent Network l Branch Network l Remote Network

• l Private banking
• l Personal banking
• l Individuals banking
• l Corporate banking
• l Companies
• l Foreign customers

ISN satisfaction scale >85 excelent 75-85 good 60-75 fair <60 poor

Notes: Foreign customers segment: the rating was significant as a quarterly moving avareage in June and December.

Evolution of the % of clients who recommend Bankinter

l Market

l Bankinter

l Branch Network l Agent Network

Bankinter SA Paseo de la Castellana. 29 28046 Madrid T, 913 397 500

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