Bankinter, a Spanish banking group, reported a significant increase in its Irish mortgage portfolio over the year leading up to September, outdoing its actions in both its domestic market and Portugal with an 8 per cent share of new lending. The banking group stated that its Irish Avant Money division saw its mortgage portfolio swell by 41 per cent annually to €2.7 billion, while the new lending for the initial nine months of the year leapt by 37 per cent to €900 million.
According to reports, Bankinter’s new Irish home loans production share for the past year stands at 8 per cent, a contrast to 7 per cent for Spain and 6.9 per cent for Portugal, the third country where it operates. In the same period, Avant Money’s consumer credit portfolio grew by 18 per cent to reach €900 million.
Bankinter’s quarterly financial update shared this Thursday points at a 7 per cent increase in net interest income for the first nine months, reaching €73 million, and a 12 per cent increase in its pretax profit to reach €290 million.
In progression with its plans to upgrade its Irish unit to a full-scale banking branch of the Madrid-based group, Bankinter aims to expand the services it offers in Ireland, including deposits. Though Avant Money currently operates as a non-bank lender in Ireland, obtaining its funding from the parent bank, it offers mortgages and consumer financing.
Bankinter anticipates regulatory approval for an Irish banking branch in the first half of the year 2025. The group confirmed on Thursday that they plan to start gathering deposits in the country by the middle of the coming year. The group emphasized that the transformation to function as a banking branch in Ireland isn’t just about building deposits, but to also penetrate the market and cross-sell other products.
Gloria Ortiz, group chief executive, shared on a call with analysts, “Our strategic focus on geographical diversification is evident – Portugal and Ireland now contribute 16 per cent of the total group income year to date”.