Lending in Ireland by Avant Money's parent company up 41%
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Lending in Ireland by Avant Money’s parent company has increased by 41% to €3.5bn compared to last year, with plans already in place for the company to expand its operations across the country.
Spanish bank Bankinter said its Irish operations saw a pre-tax profit of €20m during the year, which is 20% higher than a year ago. Of the total lending in Ireland, €2.6bn is related to mortgages, which is a 51% increase year-on-year.
The non-performing loans ratio for the business in Ireland is just 0.3%.
According to the company’s latest financial results, it made a net profit of €473.5m across all of its operations during the first half of 2024 — an increase of 13.3% compared to last year.
As of June 30, Bankinter Group’s total assets amounted to €118bn — 7.5% higher than a year ago.
The bank’s net interest income increased by 8.6% to €1.16bn, while gross operating income stood at €1.4bn, up 10.4% due to the strong performance of fee income, among other items.
The company said loans in Spain — where it has the largest commercial capacity — amounted to €62bn, up 2.5%, driven by loans to companies. Customer deposits grew by 5%, to €70bn.
The company's operating costs increased by 6% to €481m due to “higher personnel expenses and the bank's investments in its geographies for new projects”.
These new projects include a new branch in Ireland and the card business in Portugal, in addition to improvements to the technological infrastructure of the Portuguese subsidiary.
In April, Bankinter announced it would be establishing a new banking branch in Ireland. The company said the move would provide Avant Money with a full banking licence, which would allow it to offer a wider range of financial products and services.
It plans to begin offering deposit products initially, on top of its existing offering which includes credit cards, personal loans and mortgages.
In recent years, the Irish banking market has suffered the loss of two major players, KBC Bank and Ulster Bank, with just three players, Bank of Ireland, AIB and PTSB remaining.