Bankinter posted today a stable 1Q update, with a moderate +4.4% net income advance (+2.0% ahead of expectations) being mainly driven by seasonal trends. On an activity level, the bank’s customer lending growth was subdued (+0.5% vs Dec-25) amid the bank’s strategic decision to prioritize “profitable, sustainable growth” leading to a decline last quarter in new lending activity in Spain. Despite so, the bank recorded a stable NII result (unch. vs 4Q25), supported by the rebalancing of its funding mix away from costlier term deposits (-11.9% QoQ).
The bank’s management has also reiterated its last quarter’s guidance for the year (ROTE >20%), expecting quarter-on-quarter NII growth driven by business volume growth (up to c.+5% in ’26). Margin trends are not included in the bank’s target, preferring to wait for next quarter’s results to incorporate them given the continued market volatility. Nonetheless, the bank has disclosed a current +3.0% NII sensitivity (eqv. to +€57m or +3.6% of its PBT) to a +100bp interest rate change in a 12-month horizon. Fee-wise the bank expects to post a 5-10% expansion in 2026, a slightly more subdued result than in 2025 (+10.9%) which alligns with the bank’s recorded lower asset gathering momentum (AuMs up +0.9% from Dec-March vs +2.4% in the same period last year).
Asset-quality wise the bank reported an unchanged NPL position, with no reported signs of deterioration (stage 2 loans down -4.5% in the quarte), supporting the bank’s guided stable current CoR evolution (at 32bp). Lastly, Bankinter bolstered its CET1 position by +24bp to 12.97%, above the bank’s stated 12.4%-12.6% target range and a -25bp impact from the acquisitions of Plenium and Access Capital Partners (likely to be booked next quarter).
Our take:
Overall, we see Bankinter’s latest results in line with the bank’s previously stated guidance of minor profitability improvements in ‘26, with some NII-driven upside potential on the back of the current increase in interest rates (Euribor12M up +44bp YtD) following the outbreak of the US-Iran war.
Market-wise we reiterate our neutral recommendation on Bankinter, maintaining within the issuer’s capital structure our positive view on both of its outstanding AT1s on the back of their strong carry (+75-150bp vs T2 in the 2.5yr and 4.5yr tenor ranges respectively), its solid capital position (CET1 buffer of 448bp) and profitability (PPI/RWAs of 4.4% vs 3.7% at the Spanish avg).