Friday, June 2, 2023

Bankinter, From Everything to Nothing in 2023, Is the Punishment Fair?


The IBEX 35 banks are trying to recover from the blow caused by the crisis at regional banks in the United States, which began with the collapse of Silicon Valley Bank in March and then dragged down other Wall Street institutions. Infections in Europe may have been limited, but some banks, especially small and medium-sized ones, were more affected.

The uncertainty following the elections in Turkey, which has affected BBVA, has now been added to this along with other factors. Despite this, the organization headed by Carlos Torres Villa remains the biggest gainer in the IBEX 35 so far this year.

On the other hand, the smallest banks are being penalized in this exercise and the one that collects the maximum penalty, as we see in the image below, is BankInter.

Ibex bank

ibex bank

The unit is down about 17% so far this year within the Ibex 35. Nevertheless, for Antonio Castello, market specialist at iBroker, it is a strong bank with positive prospects that “doesn’t deserve this performance”.

Thanks to interest rates, margin growth has remained strong and will continue to do so next year because, well, European Central Bank rates still have to go up. “I think he has at least some more climbing left in him,” says Castello.

Here’s how Bankinter has moved in the stock market over the past three years since the start of the pandemic:



Bankinter has achieved an interest margin improvement of 63%, which is well above the rest of the Spanish banks on the Ibex 35. It has reached a figure of 5,222 million euros in 2022 compared to 320. It has also been the largest bank. The difference between what customers are charged for loans and what is paid for deposits has improved.

Despite the analyst’s positive outlook, the Premium Strength Indicator for Investment Strategies for Bankinter suggests that the value is “Very Weak”.



What could have influenced its share price to show this poor performance so far this year? Its price is practically the same. What some analysts point to is some underlying losses in its fixed-income portfolio that could add up to around 1,000 million euros. They also point to negative growth of loans and retail deposits, compared to the previous quarter. There is a decline in the first quarter. 1.6 and 1.2%.

The Reuters consensus gives Bankinter a target price of €7.52, representing an upside potential of 43%.

Nation World News Desk
Nation World News Desk
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