Spain's Bankinter said today its third-quarter net profit rose 5% from the same time in 2024, as an increase in fees and overall loans offset some pressure on lending income despite a small recovery in the quarter.
The country's fifth-biggest bank by market value reported a net profit of £270m in the three months from July to September, slightly above the €267m expected by analysts polled by Reuters.
As banks try to lift non-core banking revenues, Bankinter's net fees and commissions rose 10% year-on-year in the quarter, while the customer loan book rose 5.3% year-on-year in the first nine months.
Spanish banks are mainly retail lenders and have benefited from higher costs of loans. However, this tailwind has reversed as interest rates have been falling.
In this context, the bank's net interest income (NII), or earnings on loans minus deposit costs, fell 0.4% year-on-year in the quarter to €566m, below analysts' expectations of €570m.
Bankinter operates in Ireland through its subsidiary Avant Money.
In its results statement today, it said that its Irish portfolio grew by 20% year on year to €4.4 billion, of which €3.4 billion relates to mortgages, while the remainder relates to consumer lending.
It said its Ireland's gross income was 14% higher, far outpacing the growth seen across its other markets. It reported a pre-tax profit of €34m, representing growth of 17%.
