Bankinter shares drop after Q3 report with revenue, PPP below expectations

BANKINTER

Today 08:57

** Shares of Bankinter BKT.MC fall 4% to the bottom of Madrid's blue-chip IBEX35 index .IBEX, after Q3 report with a miss on revenue line
** While the lender's quarterly net profit came in broadly in line with estimates, revenue missed forecasts by 2%, Jefferies says, pointing to lower other income
** Barclays says Bankinter delivered a softer-than-expected Q3 with revenues and pre-provisions profit (PPP) below expectations, driven primarily by weaker fees and trading
** "We expect a modestly negative share reaction," Barclays says
** J.P.Morgan also says it expected a "tepid" reaction to Bankinter's results, pointing to customer spread, where sector data indicated a 5bps increase in the third quarter
** The broker also notes that fees were "a touch soft" and that cost of risk ticked up to 35bps against the guidance of about 33bps -- "marginal, but enough to draw questions given the macro"
** Bankinter reported a net profit of €295 million in the July-September period, in line with forecasts from analysts polled by Reuters
** Shares on track for their worst day in one year

(Reporting by Joao Manuel Mauricio)
((JoaoManuel.VicenteMauricio@thomsonreuters.com))