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Bankinter’s Chairman announces at the Annual General Meeting that the bank will distribute 200 million euros in dividends

Pedro Guerrero highlighted the 6.4% increase in the amount to be received by shareholders against 2016 earnings, with a final dividend approved today

The Chief Executive Officer emphasised that Bankinter is carrying out a significant investment plan to underpin digitalisation

In his speech in the Annual General Meeting of Shareholders, Bankinter chairman, Pedro Guerrero, pointed out that 2016 was ‘the best year in the bank’s history’. The ‘vigorous’ growth of strategic business segments in Bankinter (such as corporate banking, private banking and consumer finance) allowed the bank to end the year with a record 490 million euros in net profits, up 30.4% from 2015. In light of these all-time high earnings, with some of the highest solvency and profitability ratios in the Spanish financial system, the bank’s chairman stated that Bankinter will distribute 200 million euros in dividends against 2016 earnings.

Thus, shareholders will receive 6.4% more in cash dividends than in 2015. Following the three interim dividends distributed in 2016, Bankinter will pay out the fourth and final dividend on 30 March for a gross amount of 0.06822776 euros per share.

With regard to share value behaviour, Pedro Guerrero stressed that Bankinter has been the European bank (of significant size) that has best performed in terms of share price in the last four years on the EUROSTOXX 600. It is also the best performing bank on the IBEX 35 for the fourth consecutive year and the third best financial institution listed on the EUROSTOXX 600 in 2016.

As part of the bank’s highlights in the year, the chairman pointed out that ‘[Bankinter’s] results were achieved while maintaining our high solvency levels and improving our liquidity ratios, all of which, together with our strong business model, has merited recognition of rating agencies as well as market analysts. This is confirmed by Bankinter’s share price performance and by Standard & Poor’s decision to raise Bankinter’s credit rating.

 

Uninterrupted growth in corporate lending.

As regards customer banking, the Bankinter chairman highlighted the fact that ‘during the crisis, bank lending to companies decreased in Spain every single year between 2009 and 2016’, except in Bankinter. Mr Guerrero supported his claims with figures revealing that total bank lending fell between 2010 and 2016 by almost 40%, whilst Bankinter’s corporate loan book increased by 50%, reaching a total of 21 billion euros.

Further to overall business growth, Mr Guerrero particularly mentioned the increase seen in private banking, which has almost tripled its number of assets under management between 2010 and 2016, reaching a total of 31.2 billion euros.

Moreover, chief executive officer, María Dolores Dancausa gave a detailed overview of the bank’s all-time high earnings ‘in a period of extremely low interest rates, with significant pressure from both regulators and a complex environment’.

According to the chief executive officer, one of the keys to the Bankinter’s success in 2016 is ‘the organisation of five major business lines’ into ‘one harmonious group’ that form Bankinter Group’s key driver of revenue:  corporate banking, commercial banking, Línea Directa Aseguradora (the insurance provider), consumer finance (through Bankinter Consumer Finance) and the recently acquired business in Portugal.

In her speech, Ms Dancausa also highlighted the bank’s international expansion milestone as a result of its acquisition of Barclay’s retail and wealth banking business in Portugal, which was concluded on 1 April 2016. In this regard, she mentioned that in the last nine months, ‘[Bankinter Portugal] loan book has grown by 3% with a total 4.6 billion euros’, while retail deposits have increased by 24%, reaching a total 3.7 billion euros.

The chief executive officer also called attention to Bankinter’s excellent and committed professionals that are the first reason for Bankinter Group’s positive performance this past year. In this regard, she further emphasised that ‘in Bankinter, we see no conflict in welcoming digitalisation and robotics while maintaining an adequate and quality workforce to deal with day-to-day customer needs.

Going digital is one of the technological challenges for 2017 for many institutions like Bankinter (which has vastly promoted technological innovation for decades). ‘In response to these   challenges,’ said the chief executive officer, ‘we continue to have a major investment plan, which includes a strong IT systems update.’  As tangible results for enhancing digitalisation, Ms Dancausa announced that ‘in 2017, our customers will see significant changes to simplify their relationship with the bank and make it more comfortable and long-standing.’

In addition to the yearly dividend, all the resolutions in the agenda of the Annual General Meeting were approved, including the annual accounts and the re-election of Pedro Guerrero Guerrero, Rafael Mateu de Ros Cerezo, Marcelino Botín-Sanz de Sautuola and Fernando Masaveu Herrero as board members.

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2021-12-09 18:44:14.0