Bankinter S.A. — Interim / Quarterly Report 2013

Mar 31, 2013

first quarter twenty13

Financial Summary March 2013

Index

• 1. Economic and financial environmento

2 3 4 6 7

8 8 9 10 11

movement

1. Consolidated income statements

2. CQuarterly statements of income

3. Shareholders equity and rating

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

5. Fees

6. Quality of assets 7. Doubtful debts

12 13 14 14 15

1. Yields and costs 12. Quarterly yields and costs

2. Contribution by business area

responsibility

1. Variation in net worth

2. Creation of shareholder value

16 17 17 19 21

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

2. Financial highlights

			Variation
Balance sheet	31/03/2013	31/03/2012	Amount	%
Total assets	57,756,300	60,622,192	-2,865,892	-4.73
Credit facilities and loans	41,015,683	41,974,070	-958,387	-2.28
Controlled resources	46,435,603	45,352,834	1,082,769	2.39
On-balance sheet	37,365,916	37,922,660	-556,744	-1.47
Retail resources excl. repos	25,179,557	23,644,305	1,535,252	6.49
Negotiable securities, wholesalers	10,485,207	13,313,890	-2,828,683	-21.25
Off-balance-sheet managed funds	9,069,687	7,430,174	1,639,513	22.07
Equity	3,269,809	3,138,159	131,650	4.20
Earnings
Net interest income	132,625	164,634	-32,009	-19.44
Gross operating Income	320,594	312,176	8,418	2.70
PBT of ordinary activities	153,690	144,027	9,663	6.71
Income before taxes	67,794	63,475	4,319	6.80
Net income attributed to the Group	50,371	49,447	924	1.87
RAT IOS (%)
Nonperfor. loans	4.50	3.67	0.83	22.62
Recorded allowance/nonperforming loans	47.52	48.06	-0.55	-1.14
Cost to income	46.51	47.41	-0.90	-1.91
ROE	6.30	6.31	-0.01	-0.16
ROA	0.35	0.33	0.02	6.58
Core Tier I ratio per EBA (%)	10.35	7.58	2.77	36.59
Bankinter shares
Number of shares	563,806,141	476,919,014	86,887,127	18.22
Closing price (€)	3.77	3.93	-0.16	-4.09
EPS (€)	0.09	0.10	-0.01	-10.00
DPS (€)	0.03	0.04	-0.01	-25.00
Branches and centers
Number of branches	367	366	1	0.27
Sales offices
Corporate	45	45	0	0.00
SME	76	76	0	0.00
Private Banking	38	58	-20	-34.48
Corporate Partnerships	359	358	1	0.28
Number of agents	493	521	-28	-5.37
Telephone banking and Internet	3	3	0	0.00
PLANT ILLA
Number of employees	4,071	4,178	-107	-2.56
LDA employees	1,913	1,888	25	1.32

4. Balance sheet

			Var. 12/12			Var. 03/12
	31/03/13	31/12/12	Thous. €	%	31/03/12	Thous. €	%
ACT IVO
Cash on hand and on deposits at central banks	306,231	665,374	-359,143	-53.98	397,881	-91,650	-23.03
Trading portfolio	2,751,355	2,109,264	642,091	30.44	2,051,631	699,724	34.11
Other financial assets at fair value with changes to P&L account	44,913	39,860	5,053	12.68	28,105	16,808	59.81
Available for sale portfolio	6,960,159	6,132,471	827,688	13.50	6,327,501	632,658	10.00
Loans	43,254,811	44,751,950	-1,497,139	-3.35	46,446,661	-3,191,850	-6.87
Due from banks	970,826	1,093,728	-122,902	-11.24	1,729,883	-759,057	-43.88
Counterparty bodies	1,176,251	1,515,635	-339,384	-22.39	2,742,708	-1,566,458	-57.11
Customer loans	41,015,683	42,059,716	-1,044,033	-2.48	41,974,070	-958,387	-2.28
Debt instruments	92,051	82,871	9,180	11.08	0	92,051	--
Investment portfolio held to maturity	2,750,897	2,755,355	-4,457	-0.16	3,798,531	-1,047,634	-27.58
Hedge derivatives and macro-derivatives	128,828	155,219	-26,390	-17.00	129,139	-310	-0.24
Other assets available for sale	393,495	381,141	12,355	3.24	309,621	83,875	27.09
Associates	42,043	40,600	1,443	3.56	33,030	9,014	27.29
Reinsurance assets	6,731	6,716	15	0.23	9,153	-2,421	-26.46
Property, plant and equipment	436,771	442,288	-5,517	-1.25	460,663	-23,893	-5.19
Intangible assets	311,428	317,537	-6,109	-1.92	332,466	-21,037	-6.33
Fiscal assets and others	368,636	368,113	523	0.14	297,811	70,826	23.78
TOTAL Asse ts	57,756,300	58,165,889	-409,589	-0.70	60,622,192	-2,865,891	-4.73
Liabilities
Trading portfolio	2,201,042	1,797,324	403,718	22.46	1,947,961	253,081	12.99
Financial liabilities at amortized costs	51,260,746	52,079,071	-818,325	-1.57	54,400,658	-3,139,912	-5.77
Hedge derivatives and macro-derivatives	40,110	43,100	-2,990	-6.94	93,842	-53,733	-57.26
Insurance liabilities	608,094	618,286	-10,192	-1.65	624,617	-16,523	-2.65
Write-offs and provisions	47,386	48,200	-814	-1.69	66,337	-18,951	-28.57
Tax liabilities and others	329,114	348,812	-19,698	-5.65	350,618	-21,504	-6.13
TOTAL Liabilities	54,486,491	54,934,793	-448,302	-0.82	57,484,033	-2,997,542	-5.21
Valuation adjustments	23,026	3,052	19,974	654.50	-4,887	27,912	-571.20
Equity	3,246,783	3,228,045	18,738	0.58	3,143,045	103,738	3.30
Total equity	3,269,809	3,231,096	38,712	1.20	3,138,159	131,650	4.20
Total equity and liabilities	57,756,300	58,165,889	-409,589	-0.70	60,622,192	-2,865,891	-4.73

5. Customer funds and lending

			Variation
	31/03/2013	31/03/2012	Amount	%
Retail funds	25,179,557	23,644,305	1,535,252	6.49
Government deposits	443,430	265,085	178,345	67.28
Private Sector Deposits	21,768,783	18,825,415	2,943,368	15.64
Current accounts	11,380,352	8,950,073	2,430,279	27.15
Term deposits	10,261,513	9,739,311	522,202	5.36
Valuation adjustments	126,918	136,031	-9,113	-6.70
Other sight liabilities	255,496	370,262	-114,767	-31.00
Online marketable securities	2,711,848	4,183,544	-1,471,695	-35.18
Temporary assignment of assets	1,701,152	964,464	736,688	76.38
Wholesale marketable securities	10,485,207	13,313,890	-2,828,683	-21.25
Promissory notes and bills of exchange	685,784	1,510,364	-824,580	-54.59
Securitised notes	2,738,953	3,201,571	-462,618	-14.45
Mortgage-backed bonds	6,724,808	5,907,978	816,829	13.83
Senior notes	166,549	2,531,346	-2,364,797	-93.42
Valuation adjustments	169,112	162,631	6,481	3.99
Total	37,365,916	37,922,660	-556,744	-1.47
Off-balance sheet resources	9,069,687	7,430,174	1,639,513	22.07
Own investment funds	4,349,248	3,677,860	671,388	18.25
External investment funds sold	1,663,461	1,158,315	505,146	43.61
Pension funds	1,452,419	1,310,386	142,033	10.84
Management of SICAVs (open-ended collective investment companies)	1,604,559	1,283,613	320,946	25.00
Loans to government bodies	1,520,504	624,102	896,402	143.63
Other sectors	39,495,179	41,349,968	-1,854,789	-4.49
Commercial lending	2,068,497	1,830,031	238,466	13.03
Receivables secured by collateral	26,717,008	28,910,580	-2,193,572	-7.59
Other non-current receivables	7,868,683	7,749,582	119,101	1.54
Personal loans	3,879,731	3,658,029	221,703	6.06
Overdraft facilities	3,724,425	3,842,298	-117,872	-3.07
Other non-current receivables	264,526	249,256	15,270	6.13
Finance leases	773,434	876,367	-102,932	-11.75
Doubtful debts	2,006,546	1,670,340	336,206	20.13
Valuation adjustments	-973,494	-808,126	-165,368	20.46
Other lending	1,034,504	1,121,194	-86,690	-7.73
Total customer lending	41,015,683	41,974,070	-958,387	-2.28
Risk off the balance sheet	9,085,746	9,428,194	-342,448	-3.63
Contingent risks	2,443,891	2,451,091	-7,200	-0.29
Available to third parties	6,641,855	6,977,103	-335,248	-4.80

6. Quality of assets thousands euros

				Variation
	31/03/2013	31/03/2012	Amount	%
Computable risk	45,251,169	46,119,062	-867,893	-1.88
Total nonperforming balance	2,034,927	1,691,667	343,260	20.29
Required provisions	966,904	813,040	153,864	18.92
NPL ratio (%)	4.50	3.67	0.83	22.62
Coverage rate (%)	47.52	48.06	-0.55	-1.15
Repossessed assets	627,912	511,138	116,774	22.85
Provision for foreclosed assets	234,416	201,518	32,899	16.33
Foreclosed assets coverage(%)	37.33	39.43	-2.09	-5.30

7. Doubtful debts movement thousands euros

			Variation
Doubtful debts movement	31/3/13	31/3/12	Amount	%
Initial balance	1,984,028	1,515,766	468,262	30.89
Net entries	103,553	220,327	-116,774	-53.00
Write downs	52,654	44,426	8,228	18.52
Final balance	2,034,927	1,691,667	343,260	20.29

8. Consolidated income statements

	31/03/13	31/03/12	Variation
	Amount	Amount	Amount	%
Interest and related income	376,164	449,556	-73,392	-16.33
Interest and related charges	-243,539	-284,922	41,383	-14.52
Net interest income	132,625	164,634	-32,009	-19.44
Divident income	2,199	1,486	713	47.96
Equity method	3,553	3,946	-393	-9.96
Net fees and commissions	55,943	48,679	7,264	14.92
Trading income	66,636	43,359	23,276	53.68
Other operating income/expense	59,639	50,072	9,567	19.11
Gross operating income	320,594	312,176	8,418	2.70
Personnel expenses	-84,676	-80,896	-3,780	4.67
General expenses / Amortization	-80,047	-83,518	3,471	-4.16
Other	-2,181	-3,735	1,554	-41.61
Profit from operations before provisions	153,690	144,027	9,663	6.71
Additions to provisions	113	-575	688	-119.71
Asset losses	-74,662	-80,202	5,540	-6.91
PBT of ordinary activities	79,142	63,250	15,892	25.13
Gain / losses on disposals of assets	-11,348	225	-11,573	n,r,
Profit before taxes	67,794	63,475	4,319	6.80
Tax on income	-17,423	-14,028	-3,395	24.20
Net income	50,371	49,447	924	1.87

9. Quarterly statements of income

		Variation (%)			2012
	1Q13	1Q13/1Q12	1Q13/4Q12	4Q12	3Q12	2Q12	1Q12
Interest and related income	376,164	-16.33	-5.79	399,265	429,165	429,711	449,556
Interest and related charges	-243,539	-14.52	-3.57	-252,567	-254,252	-255,700	-284,922
Net interest income	132,625	-19.44	-9.59	146,697	174,913	174,011	164,634
Divident income	2,199	47.96	-35.17	3,392	1,626	5,287	1,486
Equity method	3,553	-9.96	-27.31	4,887	4,307	4,537	3,946
Net fees and commissions	55,943	14.92	3.99	53,798	51,483	49,880	48,679
Trading income	66,636	53.68	72.77	38,570	25,571	37,629	43,359
Other operating income/expenses	59,639	19.11	11.89	53,301	53,542	58,432	50,072
Gross operating income	320,594	2.70	6.63	300,646	311,443	329,776	312,176
Personnel expenses	-84,676	4.67	8.07	-78,351	-79,825	-84,008	-80,896
General expenses / Amortization	-80,047	-4.16	-1.16	-80,989	-78,196	-79,668	-83,518
Other	-2,181	-41.61	-11.56	-2,466	-6,746	-6,472	-3,735
Profit from operations before provisions	153,690	6.71	10.70	138,840	146,676	159,629	144,027
Additions to provisions	113	-119.71	-124.01	-472	26	1,000	-575
Asset losses	-74,662	-6.91	-2.34	-76,447	-71,562	-190,817	-80,202
PBT of ordinary activities	79,142	25.13	27.81	61,921	75,140	-30,188	63,250
Gain / losses on disposals of assets	-11,348	n,r,	-275.44	6,468	-9,936	-12,701	225
Profit before taxes	67,794	6.80	-0.87	68,389	65,204	-42,888	63,475
Tax on profit	-17,423	24.20	8.69	-16,031	-15,546	16,079	-14,028
Net income	50,371	1.87	-3.80	52,358	49,658	-26,809	49,447

10. Fees thousands euros

				Variation
	31/03/2013	31/03/2012	Amount	%
Fees paid
Fees paid to other banks	6,467	7,224	-757	-10.48
Commissions paid to agents and partner banks	5,209	6,296	-1,087	-17.27
Other fees	4,083	4,975	-892	-17.93
Total fees paid	15,759	18,495	-2,736	-14.80
Fees receive d
Guarantee and L/C	7,224	6,748	476	7.05
Foreign exchange	1,762	1,679	83	4.92
Due to contingent commitment	3,514	3,569	-55	-1.53
Payment and collection services	16,468	13,773	2,695	19.57
Commercial bills	1,270	1,419	-149	-10.48
Sight accounts	3,820	2,783	1,037	37.26
Debit and credit cards	7,648	7,553	95	1.25
Checks	277	338	-61	-18.18
Payment orders	3,453	1,679	1,774	105.63
Brokerage services	11,175	10,692	483	4.52
Underwritting and management fees	176	732	-556	-75.94
Buy/sell orders	5,253	5,131	122	2.38
Custody and administration	4,738	4,706	32	0.67
Wealth management	1,008	123	885	721.85
Non-banking financial products	22,476	21,512	964	4.48
Mutual funds	10,232	9,092	1,140	12.54
Mutual funds and advisory services	1,521	1,552	-31	-1.97
Pension funds	995	962	34	3.49
Insurance	9,728	9,906	-178	-1.80
Other commissions	9,083	9,200	-117	-1.27
Total fees received	71,702	67,174	4,528	6.74
Fees and commissio ns net	55,943	48,679	7,264	14.92

11. Yields and costsin %

	31/03/2013		31/03/2012
	weighting	rate	weighting	rate
Cash on hand and on deposit at central banks	0.71	0.42	1.39	0.39
Due from banks	3.59	0.43	6.45	1.14
Credit facilities and loans (a)	70.76	2.80	70.10	3.24
Debt securities	19.55	3.26	16.48	3.91
Equity portfolio	0.55	2.80	0.54	1.83
Average earnings assets (b)	95.17	2.79	94.98	3.16
Other assets	4.83		5.02
Average total assets	100.00	2.66	100.00	3.01
Due to central banks	15.16	0.75	12.80	1.06
Due to banks	10.64	2.09	14.61	1.97
Customer funds (c)	63.31	2.05	63.11	2.32
Customer deposits	42.91	2.04	36.20	2.00
Marketable debt securities	20.41	2.07	26.90	2.76
Subordinated liabilities	1.33	4.30	1.60	4.47
Average interest bearing funds (d)	90.44	1.87	92.13	2.06
Other liabilities	9.56		7.87
Ave rage total funds	100.00	1.70	100.00	1.90
Customer spread (a-c)		0.75		0.92
Net interest margin (b-d)		0.92		1.10

12. RQuarterly yields and costsin %

	1Q13		4Q12		3Q12		2Q12		1Q12
	weig.	rate	weig.	rate	weig.	rate	weig.	rate	weig.	rate
Cash on hand and on deposit at central bank	0.71	0.42	0.67	0.46	0.58	0.42	0.67	0.64	1.39	0.39
Due from banks	3.59	0.43	2.99	0.61	3.62	0.87	6.01	0.87	6.45	1.14
Credit facilities and loans (a)	70.76	2.80	75.14	2.86	72.85	3.04	69.84	3.19	70.10	3.24
Debt securities	19.55	3.26	16.72	3.71	16.77	3.80	17.70	3.50	16.48	3.91
Equity portfolio	0.55	2.80	0.49	4.87	0.47	2.35	0.49	7.22	0.54	1.83
Average earnings assets (b)	95.17	2.79	96.01	2.94	94.29	3.09	94.73	3.07	94.98	3.16
Other assets	4.83		3.99		5.71		5.27		5.02
Ave rage total asse ts	100.00	2.66	100.00	2.82	100.00	2.92	100.00	2.91	100.00	3.01
Due to central banks	15.16	0.75	16.86	0.76	16.51	0.78	15.86	1.01	12.80	1.06
Due to banks	10.64	2.09	9.50	2.27	13.71	1.87	14.02	1.70	14.61	1.97
Customer funds (c)	63.31	2.05	62.07	2.14	58.36	2.19	59.61	2.23	63.11	2.32
Customer deposits	42.91	2.04	39.97	2.12	35.97	1.87	34.61	1.87	36.20	2.00
Marketable debt	20.41	2.07	22.10	2.18	22.40	2.71	24.99	2.71	26.90	2.76
securities
Subordinated liabilities	1.33	4.30	1.48	3.80	1.58	4.26	1.63	4.24	1.60	4.47
Average interest bearing funds (d)	90.44	1.87	89.92	1.93	90.18	1.85	91.13	1.88	92.13	2.06
Other liabilities	9.56		10.08		9.82		8.87		7.87
Ave rage total funds	100.00	1.70	100.00	1.73	100.00	1.67	100.00	1.71	100.00	1.90
Customer spread (a-c)		0.75		0.72		0.85		0.97		0.92
Net interest margin (b-d)		0.92		1.01		1.24		1.20		1.10
Quarterly ATA (Thous. €)	57,770,293		56,774,164		58,781,551		60,109,113		60,191,042

l Cost of customer resources

l Customer margin for the quarter

l Return on customer lending

13

13. Contribution by business area

			Variation
	31/03/2013	31/03/2012	Amount	%
Customer segments	253,439	232,001	21,439	9.24
Commercial and Private Banking	109,748	108,395	1,353	1.25
Corporate Banking	143,691	123,606	20,085	16.25
Capital market	110,452	95,831	14,621	15.26
Línea Directa	80,269	77,395	2,874	3.71
Corporate Centre	-123,566	-93,051	-30,515	32.79
Gross Margin	320,594	312,176	8,418	2.70

thousands euros

14. Shareholders equity and rating thousands euros

			Variation
	31/03/2013	31/03/2012	Amount	%
Paid-in capital and reserves	3,006,985	2,558,767	448,218	17.52
Other equity instruments	72,633	404,812	-332,180	-82.06
Capital with nature of financial liability	60,844	168,165	-107,321	-63.82
Treasury shares	-4,886	-2,376	-2,510	105.65
Intangible assets and other	-280,995	-300,414	19,419	-6.46
Other deductions	-132,362	-115,423	-16,939	14.68
Tier 1	2,722,218	2,713,531	8,687	0.32
Revaluation reserve	94,308	96,220	-1,912	-1.99
Subordinated debt financing	553,788	641,792	-88,004	-13.71
General loan loss allowance	0	28,338	-28,338
Other deductions	-126,271	-115,423	-10,848	9.40
Tier 2	521,825	650,927	-129,102	-19.83
Total Equity	3,244,043	3,364,458	-120,415	-3.58
Risk-weighted assets	25,005,957	28,243,002	-3,237,045	-11.46
Tier 1 (%)	10.89	9.61	1.28	13.31
Tier 2 (%)	2.09	2.30	-0.22	-9.46
Capital ratio (%)	12.97	11.91	1.06	8.90
Excess	1,243,567	1,105,018	138,549	12.54
Core Tier I capital per EBA	2,588,741	2,140,555	448,187	20.94
Core Tier I capital per EBA	10.35	7.58	2.77	36.59

Ratios estimated in accordance with the Bank of Spain's solvency regulations and EBA criteria.

	Short term	Long term	Outlook	date
DBRS	R-1 (low)	A (low)	Negative	November 2012
Moody's	NP	Ba1	Negative	June 2012
Standard & Poor's	B	BB	Negative	November 2012

15. Variation in net worth

Balance at January 1, 2012	3,086,996
Dividends	-64,497
Valuation adjustments	34,697
Income for the year	124,654
Other variations	49,246
Balance at December 31, 2012	3,231,096
Balance at January 1, 2013	3,231,096
Dividends	-15,375
Valuation adjustments	19,974
Income for the year	50,371
Other variations	-16,257
Balance at March 31, 2013	3,269,809

16. Creation of shareholder value

Period per share data(€)
Earnings per share	0.09
Diluted earnings per share	0.09
Dividend per share	0.03
Book value per share	5.80
Price at beginning of year	3.14
Low	3.14
High	4.76
Closing price	3.77
Appreciation in last quarter (%)	20.13
Appreciation in last 12 months (%)	-4.09
Stock market ratios
Price/Book value (times)	0.65
PER (price/earnings. times)	10.39
Dividend yield (%)	2.93
Number of shareholders	74,938
Number of shares	563,806,141
Number of shares held by nonresidents	166,085,780
Average daily trading (number of shares)	3,352,457
Average daily trading (thousands of euros)	13,688

Market capitalisation (thousand euros) 2,126,677

• l Bankinter
• l Eurostoxx Banca

17. People

	31/03/2013	31/03/2012	Variation	%
Number of employees (*)	4,071	4,178	-107.00	-2.56%
Average length of service of employees (in years)	13.00	10.00	3.00	30.00%
Average age (in years)	40.00	40.00	0.00	0.00%
Employee distribution by gender (%)
Men	48.93	49.23	-0.30	-0.61%
Women	51.07	50.77	0.30	0.60%
Workforce that has logged in from a remote system (%)	23.46	23.74	-0.28	-1.20%
Internal job rotation (%)	20.32	19.74	0.58	2.93%
External turnover (%)	5.19	9.54	-4.35	-45.62%
Percentage of the headcount with university degrees (%)	74.45	72.55	1.91	2.63%

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

18. Quality of service

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

l Bankinter Partnet

• l Agent Network
• l Branch Network
• l Remote Network

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. Small enterprises segment: the rating was significant as a quarterly moving avareage in December.

l Market

l Bankinter

*Calculation: Customers that were active one year ago but who have now been inactive for four months, excluding those in arrears, default or in the process of being eliminated, and those that were not profitable in December last and remain unprofitable.

Bankinter SA Paseo de la Castellana. 29 28046 Madrid T, 913 397 500 F, 913 398 323 Telex, 42760 BANKI E Swift: BKBK ES MM

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