Bankinter S.A. — Interim / Quarterly Report 2015

Mar 31, 2015

1quarter 2015 Financial

Summary

March 2015

Index

1. Economic and financial environment 2 3 4 6 7

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

8 8 9 10 11

1. Quality of assets 7. Doubtful debts movement

2. Consolidated income statements 9. Quarterly

statements of income

1. Shareholders equity and rating

2. Yields and costs 12. Quarterly yields and costs

3. Contribution by business area

12 13 14 14 15

1. Creation of shareholder value

16 17 18 20

1. People 18. Quarterly events 19. Corporate responsibility

2. Fees

3. Variation in net worth

2. Financial highlights thousands euros

			Variation
Balance sheet	31/03/2015	31/03/2014	Amount	%
Total assets	57,143,785	55,196,308	1,947,477	3.53
Credit facilities and loans	42,648,769	40,966,593	1,682,175	4.11
Controlled resources	58,791,546	51,203,442	7,588,104	14.82
On-balance sheet	39,404,227	38,049,399	1,354,827	3.56
Retail resources excl, repos	30,738,081	27,905,263	2,832,818	10.15
Negotiable securities. wholesalers	7,960,767	8,980,496	-1,019,729	-11.35
Off-balance-sheet managed funds	19,387,319	13,154,043	6,233,276	47.39
Equity	3,691,458	3,493,803	197,655	5.66
Earnings
Net interest income	211,744	169,086	42,658	25.23
Gross operating Income	391,962	360,944	31,018	8.59
Profit (loss) before impairment	199,887	178,384	21,503	12.05
Income before taxes	124,588	85,717	38,871	45.35
Net income attributed to the Group	87,212	60,002	27,210	45.35
RAT IOS (%)
Nonperfor. loans	4.56	5.05	-0.49	-9.70
Recorded allowance/nonperforming loans	43.16	42.58	0.58	1.36
Cost to income	49.00	50.58	-1.58	-3.11
ROE	10.28	7.25	3.03	41.73
ROA	0.63	0.44	0.19	42.99
CET 1	11.82	12.00	-0.18	-1.53
Bankinter shares
Number of shares	898,866,154	895,583,800	3,282,354	0.37
Closing price (€)	7.11	5.84	1.27	21.70
EPS (€)	0.10	0.07	0.03	42.86
DPS (€)	0.08	0.02	0.06	300.00
Branches and centers
Number of branches	360	360	0	0.00
Sales offices
Corporate	42	48	-6	-12.50
SME	75	75	0	0.00
Private Banking	43	40	3	7.50
Corporate Partnerships	406	372	34	9.14
Number of agents	460	475	-15	-3.16
Telephone banking and Internet	3	3	0	0.00
Headcount
Number of employees	4,227	4,119	108	2.62

LDA employees 1,908 1,896 12 0.63

4. Balance sheet thousands euros

			Var. 03/15-12/14		Var. 03/15-03/14
	31/03/2015	31/12/2014	Thousand €	%	31/03/2014	Thousand €	%
ASSETS
Cash on hand and on deposits at central banks	685,102	357,327	327,775	91.73	229,271	455,831	198.82
Trading portfolio	4,446,104	5,353,482	-907,378	-16.95	5,235,739	-789,635	-15.08
Other financial assets at fair value with changes to P&L account	52,969	49,473	3,496	7.07	21,223	31,746	149.58
Available for sale portfolio	3,275,253	3,013,813	261,440	8.67	2,827,620	447,633	15.83
Loans	44,163,262	44,006,522	156,740	0.36	42,399,853	1,763,409	4.16
Due from banks	950,125	1,113,441	-163,316	-14.67	1,291,404	-341,279	-26.43
Counterparty bodies	117,001	0	117,001	-	0	117,001	-
Customer loans	42,648,769	42,446,723	202,045	0.48	40,966,593	1,682,175	4.11
Debt instruments	447,367	446,357	1,010	0.23	141,856	305,511	215.37
Investment portfolio held to maturity	2,801,705	2,819,482	-17,777	-0.63	2,891,645	-89,940	-3.11
Hedge derivatives and macro-derivatives	144,553	148,213	-3,660	-2.47	94,861	49,691	52.38
Other assets available for sale	367,057	356,671	10,386	2.91	372,328	-5,271	-1.42
Associates	34,552	29,726	4,827	16.24	41,377	-6,824	-16.49
Reinsurance assets	4,065	3,720	345	9.27	4,679	-615	-13.13
Property, plant and equipment	461,871	467,363	-5,492	-1.18	431,614	30,257	7.01
Intangible assets	276,475	282,327	-5,852	-2.07	294,769	-18,295	-6.21
Fiscal assets and others	430,819	444,857	-14,038	-3.16	351,329	79,490	22.63
TOTAL Asse ts	57,143,785	57,332,974	-189,189	-0.33	55,196,308	1,947,477	3.53
Liabilities
Trading portfolio	3,173,781	2,441,491	732,291	29.99	2,070,714	1,103,067	53.27
Financial liabilities at amortized costs	49,035,192	49,990,680	-955,488	-1.91	48,566,515	468,677	0.97
Hedge derivatives and macro-derivatives	43,660	20,241	23,420	115.71	26,778	16,882	63.05
Insurance liabilities	607,529	614,780	-7,251	-1.18	598,017	9,512	1.59
Write-offs and provisions	92,596	88,236	4,360	4.94	66,507	26,089	39.23
Tax liabilities and others	499,569	534,103	-34,533	-6.47	373,974	125,595	33.58
TOTAL Liabilities	53,452,327	53,689,530	-237,202	-0.44	51,702,505	1,749,822	3.38
Valuation adjustments	161,062	129,531	31,531	24.34	78,389	82,673	105.46
Equity	3,530,396	3,513,914	16,482	0.47	3,415,414	114,982	3.37
Total equity	3,691,458	3,643,445	48,013	1.32	3,493,803	197,655	5.66
Total equity and liabilities	57,143,785	57,332,974	-189,189	-0.33	55,196,308	1,947,477	3.53

5. Customer funds and lending thousands euros

			Variation
	31/03/2015	31/03/2014	Amount	%
Retail funds	30,738,081	27,905,263	2,832,818	10.15
Government deposits	877,245	363,624	513,621	141.25
Private Sector Deposits	27,447,823	25,550,433	1,897,390	7.43
Current accounts	17,434,048	13,974,753	3,459,295	24.75
Term deposits	9,948,215	11,442,444	-1,494,229	-13.06
Valuation adjustments	65,560	133,236	-67,676	-50.79
Other sight liabilities	355,258	326,243	29,015	8.89
Online marketable securities	2,057,755	1,664,963	392,792	23.59
Temporary assignment of assets	705,378	1,163,640	-458,261	-39.38
Wholesale marketable securities	7,960,767	8,980,496	-1,019,729	-11.35
Promissory notes and bills of exchange	210,518	644,449	-433,931	-67.33
Securitised notes	1,841,401	2,506,545	-665,144	-26.54
Mortgage-backed bonds	5,160,265	5,581,312	-421,048	-7.54
Senior notes	676,903	179,840	497,063	276.39
Valuation adjustments	71,681	68,350	3,330	4.87
Total	39,404,227	38,049,399	1,354,827	3.56
Off-balance sheet resources	19,387,319	13,154,043	6,233,276	47.39
Own investment funds	7,505,188	6,496,578	1,008,610	15.53
External investment funds sold	5,201,567	2,128,341	3,073,226	144.40
Pension funds	2,064,603	1,741,247	323,356	18.57
Management of SICAVs (open-ended collective investment companies)	4,615,960	2,787,876	1,828,084	65.57
Loans to government bodies	1,693,833	2,149,623	-455,790	-21.20
Other sectors	40,954,935	38,816,970	2,137,965	5.51
Commercial lending	1,873,521	1,872,985	536	0.03
Receivables secured by collateral	25,565,771	25,100,501	465,269	1.85
Other non-current receivables	10,149,473	8,667,870	1,481,603	17.09
Personal loans	5,609,492	4,288,378	1,321,114	30.81
Overdraft facilities	3,973,118	4,103,738	-130,620	-3.18
Other non-current receivables	566,862	275,754	291,108	105.57
Finance leases	953,180	789,981	163,199	20.66
Doubtful debts	2,139,468	2,255,970	-116,502	-5.16
Valuation adjustments	-921,437	-982,974	61,537	-6.26
Other lending	1,194,959	1,112,637	82,322	7.40
Total customer lending	42,648,769	40,966,593	1,682,175	4.11
Risk off the balance sheet	11,751,709	9,519,918	2,231,791	23.44
Contingent risks	2,835,024	2,407,559	427,465	17.76
Available to third parties	8,916,685	7,112,359	1,804,326	25.37

6. Quality of assets thousands euros

				Variation
	31/03/2015	31/03/2014	Amount	%
Computable risk	47,691,930	45,518,245	2,173,685	4.78
Doubtful risk (including contingent risks)	2,175,420	2,296,851	-121,431	-5.29
Required provisions	939,003	978,084	-39,082	-4.00
NPL ratio (%)	4.56	5.05	-0.49	-9.70
Coverage rate (%)	43.16	42.58	0.58	1.36
Repossessed assets	599,857	629,047	-29,190	-4.64
Provision for foreclosed assets	232,800	256,719	-23,919	-9.32
Foreclosed assets coverage(%)	38.81	40.81	-2.00	-4.90

7. Doubtful debts movement thousands euros

			Variation
Doubtful debts movement (including contingent risks)	31/03/2015	31/03/2014	Importe	%
Initial balance	2,232,732	2,275,370	-42,638	-1.87
Net entries	-1,592	51,292	-52,884	-103.10
Write downs	55,720	29,811	25,909	86.91
Final balance	2,175,420	2,296,851	-121,431	-5.29

8. Consolidated income statements

	31/03/2015	31/03/2014	Variation
	Amount	Amount	Amount	%
Interest and related income	333,613	343,799	-10,186	-2.96
Interest and related charges	-121,869	-174,713	52,844	-30.25
Net interest income	211,744	169,086	42,658	25.23
Divident income	2,977	3,217	-241	-7.48
Equity method	4,136	3,808	327	8.60
Net fees and commissions	75,348	70,811	4,536	6.41
Trading income	36,277	49,196	-12,919	-26.26
Other operating income/expense	61,481	64,826	-3,345	-5.16
Gross operating income	391,962	360,944	31,018	8.59
Personnel expenses	-97,932	-94,274	-3,658	3.88
General expenses / Amortization	-94,143	-88,287	-5,856	6.63
Operating profit (loss) before impairment	199,887	178,384	21,503	12.05
Additions to provisions	-8,213	-11,441	3,228	-28.22
Asset losses	-53,012	-68,162	15,150	-22.23
Operating profit (loss) net of impairment	138,663	98,781	39,882	40.37
Gain / losses on disposals of assets	-14,075	-13,064	-1,011	7.74
Profit before taxes	124,588	85,717	38,871	45.35
Tax on income	-37,376	-25,715	-11,661	45.35
Net income	87,212	60,002	27,210	45.35

thousands euros

9. Quarterly statements of income

		thousands euros
--	--	-----------------	--

	2015	Variation %			2014
	1Q15	1Q15/1Q14	1Q15/4Q14	4Q14	3Q14	2Q14	1Q14
Interest and related income	333,613	-2.96	-5.82	354,235	353,646	352,640	343,799
Interest and related charges	-121,869	-30.25	-15.19	-143,693	-162,479	-168,079	-174,713
Net interest income	211,744	25.23	0.57	210,544	191,167	184,561	169,086
Divident income	2,977	-7.48	113.09	1,397	1,599	1,791	3,217
Equity method	4,136	8.60	-10.08	4,600	4,763	3,791	3,808
Net fees and commissions	75,348	6.41	0.68	74,842	72,437	73,317	70,811
Trading income	36,277	-26.26	59.92	22,684	24,872	36,544	49,196
Other operating income/expenses	61,481	-5.16	-0.91	62,049	55,974	60,948	64,826
Gross operating income	391,962	8.59	4.21	376,115	350,812	360,952	360,944
Personnel expenses	-97,932	3.88	8.47	-90,281	-93,243	-90,941	-94,274
General expenses / Amortization	-94,143	6.63	6.47	-88,425	-86,826	-86,971	-88,287
Operating profit (loss) before impairment	199,887	12.05	1.26	197,409	170,743	183,040	178,384
Additions to provisions	-8,213	-28.22	-38.67	-13,390	-6,684	-10,020	-11,441
Asset losses	-53,012	-22.23	-16.77	-63,694	-50,799	-54,852	-68,162
Operating profit (loss) net of impairment	138,663	40.37	15.24	120,324	113,260	118,168	98,781
Gain / losses on disposals of assets	-14,075	7.74	-31.21	-20,460	-12,305	-11,864	-13,064
Profit before taxes	124,588	45.35	24.76	99,864	100,955	106,303	85,717
Tax on profit	-37,376	45.35	28.63	-29,058	-30,287	-31,891	-25,715
Net income	87,212	45.35	23.17	70,805	70,668	74,412	60,002

l Gross margin

				Variation
	31/03/2015	31/03/2014	Amount	%
Fees paid	18,025	16,728	1,297	7.75
Fees receive d
Guarantee and L/C	7,467	7,373	94	1.28
Foreign exchange	2,232	2,090	141	6.75
Due to contingent commitment	3,889	4,194	-305	-7.27
Payment and collection services	14,745	16,891	-2,146	-12.71
Brokerage services	21,839	16,314	5,525	33.87
Underwritting and management fees	137	1,221	-1,084	-88.78
Buy/sell orders	11,581	8,110	3,471	42.80
Custody and administration	6,769	5,459	1,309	23.98
Wealth management	3,352	1,523	1,829	120.05
Non-banking financial products	35,162	28,965	6,197	21.39
Asset Management	24,309	17,732	6,576	37.09
Insurance and Equity	10,854	11,233	-379	-3.38
Other commissions	8,039	11,712	-3,673	-31.36
Total fees received	93,372	87,539	5,833	6.66
Fees and commissio ns net	75,348	70,811	4,536	6.41

11. Yields and costsin %

	31/03/2015		31/03/2014
	Weighting	Rate	Weighting	Rate
Cash on hand and on deposit at central banks	0.75	0.03	0.84	0.15
Due from banks	4.94	0.08	4.97	0.28
Credit facilities and loans (a)	74.40	2.55	73.17	2.68
Debt securities	14.17	3.40	14.24	3.61
Equity portfolio	0.60	3.62	0.61	3.86
Average earnings assets (b)	94.85	2.57	93.84	2.71
Other assets	5.15		6.16
Ave rage total asse ts	100.00	2.44	100.00	2.55
Due to central banks	5.26	0.10	5.62	0.25
Due to banks	12.43	1.23	12.26	1.91
Customer funds (c)	68.78	0.94	68.40	1.42
Customer deposits	51.92	0.72	50.65	1.24
Marketable debt securities	16.86	1.63	17.75	1.94
Subordinated liabilities	1.09	4.94	1.12	4.94
Average interest bearing funds (d)	87.56	1.01	87.40	1.47
Other liabilities	12.44		12.60
Ave rage total funds	100.00	0.88	100.00	1.28
Customer spread (a-c)		1.61		1.26
Net interest margin (b-d)		1.56		1.25

12. Quarterly yields and costsin %

	1Q15		4Q14		3Q14		2Q14		1Q14
	Weighting	Rate	Weighting	Rate	Weighting	Rate	Weighting	Rate	Weighting	Rate
Cash on hand and on deposit at central bank	0.75	0.03	0.72	0.03	0.70	0.08	0.80	0.14	0.84	0.15
Due from banks	4.94	0.08	6.09	0.09	7.90	0.13	5.22	0.27	4.97	0.28
Credit facilities and loans (a)	74.40	2.55	72.77	2.65	71.28	2.65	72.60	2.70	73.17	2.68
Debt securities	14.17	3.40	15.06	3.34	13.78	3.70	14.72	3.47	14.24	3.61
Equity portfolio	0.60	3.62	0.59	1.65	0.59	1.88	0.62	2.07	0.61	3.86
Average earnings assets (b)	94.85	2.57	95.24	2.60	94.25	2.60	93.96	2.70	93.84	2.71
Other assets	5.15		4.76		5.75		6.04		6.16
Ave rage total asse ts	100.00	2.44	100.00	2.48	100.00	2.45	100.00	2.54	100.00	2.55
Due to central banks	5.26	0.10	5.36	0.06	4.77	0.13	5.35	0.23	5.62	0.25
Due to banks	12.43	1.23	12.58	1.56	11.76	1.92	12.34	1.90	12.26	1.91
Customer funds (c)	68.78	0.94	69.02	1.05	69.83	1.18	68.35	1.30	68.40	1.42
Customer deposits	51.92	0.72	51.73	0.84	51.49	0.94	50.58	1.09	50.65	1.24
Marketable debt	16.86	1.63	17.29	1.68	18.34	1.85	17.77	1.89	17.75	1.94
securities
Subordinated liabilities	1.09	4.94	1.08	5.00	1.09	4.91	1.11	4.87	1.12	4.94
Average interest bearing funds (d)	87.56	1.01	88.05	1.14	87.45	1.28	87.15	1.38	87.40	1.47
Other liabilities	12.44		11.95		12.55		12.85		12.60
Ave rage total funds	100.00	0.88	100.00	1.00	100.00	1.12	100.00	1.20	100.00	1.28
Customer spread (a-c)		1.61		1.60		1.47		1.41		1.26
Net interest margin (b-d)		1.56		1.46		1.32		1.32		1.25
Quarterly ATA (Thousand €)	56,040,432		56,987,518		57,433,280		56,066,028		55,254,371

l Cost of customer resources

l Customer margin for the quarter

l Return on customer lending

13. Contribution by business area thousands euros

	Variation
	31/03/2015	31/03/2014	Amount	%
Customer segments	244,862	198,818	46,044	23.16
Commercial and Private Banking	111,910	72,038	39,872	55.35
Corporate Banking	132,952	126,780	6,172	4.87
Capital market	71,144	91,033	-19,889	-21.85
Línea Directa	89,058	87,991	1,067	1.21
Corporate Centre	-13,101	-16,897	3,796	-22.46
Gross Margin	391,962	360,944	31,018	8.59

14. Shareholders equity and rating thousands euros

			Variation
	31/03/2015	31/03/2014	Amount	%
Capital and Reserves	3,483,652	3,331,089	152,564	4.58
Treasury stock	-2,341	-2,956	615	-20.81
Intangible and other assets	-17,371	-204,427	187,056	-91.50
CET1 instruments	3,463,941	3,123,706	340,235	10.89
CET1 deductions	-202,921	-94,515	-108,406	114.70
AT1 instruments and deductions	-174,734	-148,175	-26,559	17.92
Tier 2 instruments and deductions	325,797	284,197	41,601	14.64
Total Equity	3,412,084	3,165,213	246,871	7.80
Risk-weighted assets	26,120,571	24,010,309	2,110,262	8.79
CET 1 (%)	11.82	12.00	-0.18	-1.53
Tier 1 (%)	11.82	12.00	-0.18	-1.53
Tier 2 (%)	1.25	1.18	0.06	5.38
Adequacy ratio (%)	13.06	13.18	-0.12	-0.91

	Long term	Short term	Outlook	Date
Moody's	Baa3	P-3	Negative	May 2014
Standard & Poor's	BBB-	A3	Stable	November 2014
DBRS	A (low)	R-1 (low)	Negative	November 2012

15. Variation in net worth

thousands euros

3,352,196
-70,167
86,359
275,887
-830
3,643,445
3,643,445
-69,031
31,531
87,212
-1,699
3,691,458

16. Creation of shareholder value

Period per share data (€)
Earnings per share	0.10
Dividend per share	0.08
Book value per share	4.11
Price at beginning of year	6.70
Low	5.88
High	7.30
Closing price	7.11
Appreciation in last quarter (%)	6.06
Appreciation in last 12 months (%)	21.70
Stock market ratios
Price/Book value (times)	1.73
PER (price/earnings, times)	18.05
Dividend yield (%)	2.16
Number of shareholders	63,967
Number of shares	898,866,154
Number of shares held by nonresidents	380,236,651
Average daily trading (number of shares)	6,760,943
Average daily trading (thousands of euros)	45,221

Market capitalisation (thousand of euros) 6,388,242

l Ibex 35

l Bankinter

l Eurostoxx Banca (SX7P)

17. People

	31/03/2015	31/03/2014	Variation	%
Number of employees (*)	4,227	4,119	108.00	2.62
Average length of service of employees (in years)	13.28	13.57	-0.29	-2.14
Average age (in years)	41.01	40.92	0.09	0.22
Employee distribution by gender (%)
Men	49.35	49.26	0.09	0.18
Women	50.65	50.74	-0.09	-0.18
Workforce that has logged in from a remote system (%)	31.90	22.67	9.23	40.73
Internal job rotation (%)	18.54	18.86	-0.32	-1.70
External turnover (%)	3.83	3.74	0.09	2.47

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

21

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

bankinter,com