Profits up 113% at Bankinter

16 July 2007

Bankinter SA has posted first-half profits of $346 million - more than doubling the figure of $161 million for the year ago period.

The improved performance for the Spanish bank is largely attributed to the sale of a 50 per cent stake in its insurance business to Mapfre SA for $154 million.

Analysts had predicted that the sale would have helped the company to net profits of $381 million.

Meanwhile, revenue was also at the lower end of predictions from market watchers despite being up 27.7 per cent to $394 million.

The worse than expected performance for the sixth-largest bank in Spain came amid an 18.2 per cent increase in operating costs owing to it embarking on a period of costly expansion in its domestic market.

Over the course of first-half of 2007, Bankinter's workforce was boosted by 9.3 per cent while its branch network grew by 8.8 per cent.