Higher deposit costs pressure margins at Spain's Bankinter, though Q3 net profit meets expectations (updated)

BANKINTER

Today 07:06

Adds details, CFO's comments
By Jesús Aguado
MADRID, Oct 22 (Reuters) - Lending income at Spain's Bankinter BKT.MC was pressured in the third quarter as higher interest rates pushed up deposit costs, it said on Thursday. 
Bankinter, Spain's fifth-largest bank by market value, reported net profit rose 9% from the same period in 2025 to €295 million ($331.55 million), in line with analysts' forecasts, helped by higher loans and economic growth
However, analysts at Barclays said that both revenue and pre-provision profit came in slightly below expectations partly due to weaker fees and trading
Net fees and commissions rose 7% year-on-year in the quarter but fell 11% from the previous quarter, which included a one-off of €23 million from an alternative investment
Net interest income (NII), earnings on loans minus deposit costs, rose 6% year-on-year in the third quarter to €602 million, broadly in line with analysts' expectations
NII rose just 2% from the previous quarter following a rise of 6 basis points in deposit costs compared to the previous three months
Chief Financial Officer Jacobo Diaz told analysts that repricing of the loan book would take around 12 to 24 months to fully kick in, but he expected the higher rate environment to be supportive in the future 
"The current rate environment should continue to support positive NII development with continued quarter-on-quarter growth", he said
At 0810 GMT, shares in Bankinter were down 5%, while Spain's blue-chip index .IBEX Ibex-35 was down 1.75%. The bank's shares had risen 8% year-to-date

($1 = 0.8894 euros)


($1 = 0.8898 euros)

 (Reporting by Jesús Aguado; Editing by David Latona and Susan Fenton)
 ((jesus.aguado@thomsonreuters.com; +34 91 835 68 32; Reuters Messaging: jesus.aguado.reuters.com@reuters.net))