Banking institution, Bankinter, experiences a minor decrease in Q2 net earnings primarily due to a lower inflow of lending revenues.
Bankinter Reports Strong First-Half Profit, Expands into Irish Market
Spanish bank Bankinter has announced a net profit of €542 million for the first half of 2025, marking a 14% year-over-year increase [1][3][4]. This strong performance is partly due to a rise in fees and efficient operational management, which has helped offset pressure on net interest income (NII) in the challenging interest rate environment [1][5].
Bankinter's return on tangible equity (ROTE) also improved, reaching 19.5% in the first half of 2025 - one of the highest ratios among Spanish banks [1][2]. The bank's net interest income (NII) showed some pressure, with a 4% year-over-year decline in Q2 2025, but a quarter-on-quarter increase of 4% in Q2 [2]. For the full year 2025, Bankinter expects NII to remain flat, signaling some stabilization after earlier declines [2].
Fee income and loans both increased by approximately 9% and 6% year-over-year, respectively, in Q2 2025, contributing to the bank’s strong earnings [2]. Customer volumes rose 9% year-over-year to €231 billion, with an 18% increase in Assets Under Management (AUMs) [1]. The bank maintains a low cost-to-income ratio of about 36.7%, reflecting efficient operational management that supports profitability amid interest income pressure [5].
Bankinter has expanded its operations into Ireland recently, as noted in its evolution from a Spanish industrial bank into a diversified financial institution with presence in Spain, Portugal, and Ireland [1]. The bank's Irish subsidiary, Avant Money, reported a pre-tax profit of €21m, an increase of 2%, and the total loans and receivables for Bankinter Ireland reached €4 billion at the end of June [6]. However, detailed financial or operational metrics specifically related to the Irish market performance as of 2025 were not available.
| Metric | Trend in 2025 | |------------------------|------------------------------------------| | Net Profit | Strong growth, +14% YoY, €542M 1H 2025 | | Net Interest Income | Slight decline YoY (-4% Q2), flat expected full year | | Fee Income | Increased 9% YoY in Q2 | | Loans | Increased 6% YoY in Q2 | | Customer Volumes | +9% YoY, €231 billion | | Assets Under Management| +18% YoY | | Irish Market | Recent entry, no detailed performance data |
Bankinter's strong earnings and geographic diversification into Ireland position the bank well for future growth, despite the challenging interest rate environment. The bank's focus on fee income and operational efficiency is a resilient strategy that has helped it weather the current market conditions. As the bank continues to grow in Ireland, more detailed financial and operational metrics related to its Irish market performance may become available.
[1] Bankinter Annual Report 2025 [2] Bankinter Q2 2025 Earnings Release [3] Bankinter 1H 2025 Financial Results [4] Bankinter Press Release, 1H 2025 Financial Results [5] Bankinter Q2 2025 Investor Presentation [6] Avant Money Ireland Financial Results, H1 2025
The bank's expansion into the Irish market, a move that diversifies Bankinter from a Spanish industrial bank into a global financial institution, presents an avenue for future growth. This strategic expansion into the banking-and-insurance sector of Ireland, while potentially yielding more detailed financial and operational metrics in the future, currently offers Bankinter a means to increase business opportunities beyond the Spanish and Portuguese markets. In the meantime, Bankinter's resilient approach to the challenging financial environment, characterized by a focus on fee income and operational efficiency, enables the bank to maintain a strong position in the industry.
