Bankinter earned 11% more until September, but its 11% drop on the stock market points to a broader issue. Only 25% of the first European banks to publish accounts have exceeded profit forecasts.
According to finanzas.com, Bankinter earned €901 million until September, 11% more than a year earlier, but the stock market punished its shares with an 11% drop. The entity was the first of the Ibex 35 banks to present results, and its reaction raises doubts about whether the European sector will follow the same path.
The analysis by UBS on the eight leading European banks that have published accounts is not favourable. Six of the eight, 75%, had a pre-tax profit lower than expected by analysts, and seven disappointed on revenues. Only 25% exceeded profit estimates, compared to 91% that did so in the second quarter.
Overall, pre-tax profit was 1.1% below consensus, and revenues 1.8%. The interest margin was 0.3% below expectations, while other income, such as fees, was 3.6% below.
In the case of Bankinter, non-interest income was 7.2% below consensus, and pre-tax profit was 1% below. The entity compensated part of the weakness with better cost control and lower provisions, but it was not enough for the market.
Santander, BBVA, and Sabadell are next to present accounts. Santander will do so on Wednesday, October 28, BBVA and Sabadell on Thursday, 29, and CaixaBank and Unicaja will close the season on Friday, 30. The consensus of analysts consulted by finanzas.com expects Santander to earn €10.8 billion until September.
Meanwhile, Renta 4 Banco has raised its recommendation on Bankinter from hold to overweight, and Banco Sabadell has done the same, moving from neutral to overweight. The risk premium in France, at 176 basis points, adds pressure on entities due to their exposure to sovereign debt.
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