1T 2008 ingles.qxd:Bankinter 1T 08 CAST · Bankinter SA Paseo de la Castellana, 29 28046 Madrid...

Bankinter SAPaseo de la Castellana, 2928046 Madrid (Spain)T. +34 913 397 500F. +34 913 398 323Telex. 42760 BANKI ESwift: BKBK ES MM

www.bankinter.com

Financial Summary1st quarter · March 2008

Flexibility

cobertes 1T ING.qxd:Maquetación 1 17/4/08 18:44 Página 1

01. Financial highlights

Financial Summary 1st Quarter March 08 01. Financial highlights 1

Balance sheet

Total assets

Credit facilities and loans

Credit facil. and loans ex-securitization

Customer funds

Off-balance-sheet managed funds

Earnings

Net interest income

Ordinary Income

Operating income

Income before taxes

Net income attributed to the Group

Ratios

Nonperfor. loans/ total risk expos. ex-securit. (%)

Recorded allowance/nonperforming loans (%)

Cost to income (%)

ROE (%)

ROA (%)

Capital ratio (%)

Tier 1 capital (%)

Bankinter shares

Number of shares

Closing price

EPS. Earnings per share (euros)

DPS. Dividend per share (euros)

Branches and centers

Number of branches

Commercial management centers

Corporate Business Units

SME Business Units

Private Banking Centers

Corporate Partnerships

Number of agents

Telephone banking and Internet

Headcount

Number of employees**

(*) BIS I regulations

(**) Full-time equivalent

Variation

03/31/2008 03/31/2007 Amount %

51,007,914 46,990,823 4,017,091 8.55

38,186,777 32,879,263 5,307,514 16.14

40,440,164 35,525,832 4,914,332 13.83

39,673,966 35,506,353 4,167,613 11.74

10,455,536 11,907,206 -1,451,669 -12.19

153,776 143,132 10,644 7.44

246,028 236,470 9,558 4.04

122,480 130,399 -7,919 -6.07

100,102 120,156 -20,054 -16.69

73,655 85,167 -11,512 -13.52

0.46 0.27 0.20 74.65

293.00 529.81 -236.82 -44.70

48.42 44.36 4.06 9.15

16.60 22.37 -5.77 -25.79

0.57 0.74 -0.17 -22.70

9.59 9.97* -0.38 -3.81

6.89 6.72* 0.17 2.53

405,893,880 395,245,225 10,648,655 2.69

10.05 12.27 -2.22 -18.09

0.18 0.22 -0.04 -18.18

0.08 0.07 0.01 15.02

363 337 26 7.72

51 50 1 2.00

161 133 28 21.05

50 44 6 13.64

559 533 26 4.88

1,005 991 14 1.41

3 3 0 0.00

4,582 4,093 489 11.95

1T 2008_ingles.qxd:Bankinter 1T 08 CAST 28/4/08 08:29 Página 1

Financial Summary 1st Quarter March 08 02. Introduction 2

02. Introduction

The approach adopted by the Bankinter Group at the beginning of 2008 was marked by an increase in funds, sustainedgrowth in lending and the attraction and activation of new customers in the Bank’s target segments, which led it to reportresults that demonstrate the robustness of its recurring business and its continuing high degree of solvency given thequality of its assets and the level of capitalisation.

The major figures disclosed at the end of this first quarter point most notably to a 24.2% increase in averagecustomer deposits with respect to the year-ago period; a 3.29% rise in the deposit/loan ratio to 63.4%; a good showing interms of attraction of new customers in strategic segments, with overall active customer growth of 18.4% in High Incomeand of 13.9% in SMEs; and an increase of 11.3% in net interest income (excluding dividends) compared with the firstquarter of 2007. All this was achieved whilst maintaining a non-performing loans ratio of 0.46%, once again the lowest inthe Spanish banking industry.

Based on these premises, the Bankinter Group’s net profit for the first quarter of 2008 amounted to EUR 73.65million and profit before tax stood at EUR 100.10 million, signalling solid results despite the economic climate.

The most noteworthy feature of the various income-statement margins was the strength of net interest income. Thequarterly figure for this margin (excluding dividends) was EUR 151.38 million, up 11.3% on the year-ago period,underpinned by the higher spreads on loans. Again, this growth was attained despite the current economic climate andthe campaign launched by the Bank in the quarter to attract deposits. Disregarding this campaign, which entailed new-deposit costs of EUR 8.8 million, net interest income (excluding dividends) would have grown by 17.7%.

The substantial increase in new customer funds was accompanied by selective growth in lending to customers,which at March 2008 was 16.14% higher than in the year-ago period and helped the Bank to achieve an improvedfinancial equilibrium.

Particularly laudable in the customer business was the sound performance of the segments that Bankinter regardsas strategic and in which the highest investments were made, above all those encompassing high net worth customers:Private Banking and Personal Finance, and the SME segment.

The High Income segments (Private Banking and Personal Finance) reported increases of 28.2% in averagecumulative lending and 23.2% in borrowed funds, together with 4,969 new customers gained in the period, 68.9% morethan the figure for the first quarter of 2007. The SME segment displayed growth of 23% in average lending, 21.7% inborrowed funds and 13.9% in new customers in the quarter.

At the same time, in order to continue with the sound management of the various businesses, there was a sizeableincrease in the total number of the Bank’s employees, which at the end of the first quarter totalled 4,582, up 12% on 31March 2007.

Once again this quarter, the quality of service provided to customers continued to be one of the variables on whichBankinter’s strategy is based. The Bank’s Net Satisfaction Index (ISN) stood at 76.21, 6.32 points higher than the marketaverage.

As regards the Bank’s business ratios, its efficiency ratio was 48.42%; ROE stood at 16.60% and ROA was 0.57%.


Financial Summary 1st Quarter March 08 02. Introduction 3

Margins and Earnings

The highlights of Bankinter’s balance sheet were as follows: total assets grew by 8.55% to reach EUR 51,008 million;on- and off-balance sheet customer funds amounted to EUR 50,129 million at 31 March, with particularly outstandinggrowth in time deposits which, boosted by the campaign to attract customers, totalled EUR 6,675 million, up 45.07%.Also particularly worthy of note are the Bank’s loans and receivables which, at EUR 38,187 million, were 16.14% higherthan the figure for the year-ago period.

The figures for the main margins in Bankinter’s income statement for the period ended 31 March 2008 were asfollows: net interest income stood at EUR 153.78 million (+7.44%); gross income was EUR 246.03 million (+4.04%); andnet operating income fell by 6.07%, impacted by the investments to develop the strategic businesses –increased number ofemployees and new branches– which led to an increase of 16.5% in the Bank’s operating costs compared with the firstquarter of 2007.

Net fee and commission income was similar to that reported at the end of March 2007, bolstered by the highervalue-added services.

Non-performing loans amounted to EUR 202.29 million, equivalent to 0.46% of the Bank’s computable risk assets, aratio that is far lower than that for the industry as a whole. Similarly, the ratio of the recognised allowance to non-performing loans stood at 293%. Total loan loss allowances increased by 8.80% with respect to the first quarter of 2007. Inshort, Bankinter continues to maintain excellent solvency levels founded on its in-house risk analysis, acceptance andautomatic management systems, portfolio diversification, conservative loan loss provisions and scant exposure to countryrisk.

As regards BIS II capital regulations, the Bank’s estimated capital ratios, calculated in accordance with the draftBank of Spain Circular on the determination and control of minimum capital requirements, were adequate at quarter-end,with a core capital ratio (without deductions) of 6.01%. Particular mention should be made of the recent confirmation ofBankinter’s credit ratings by the related agencies, which reflects its appropriate capitalisation and financing structure, thehigh quality of its assets, and the profitability of its business.

On 10 January 2008, the debentures issued to employees and convertible into shares were converted early followingthe resolution adopted by the Board of Directors of Bankinter at its meeting on 19 December 2007. Also, in order to caterfor the conversion, the Bank’s share capital was increased through the issuance of 9,014,305 new shares of EUR 0.30 parvalue each, representing 2.27% of the share capital.

Earnings per share stood at EUR 0.18, down 18.18% on the year-ago period. Also, the Bankinter (BKT) share pricemirrored the adverse market trend and ended the quarter at EUR 10.05, compared with EUR 12.27 at 31 March 2007.

Lastly, on 5 April 2008 Bankinter paid the fourth 2007 interim dividend, which amounted to EUR 0.0781 per share.


Financial Summary 1st Quarter March 08 03. Quality of service 4

ISN satisfaction scale

>85

75-85

60-75

<60

03. Quality of service

Excellent

Good

Fair

Poor

81

79

77

75

73

71

4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007

By distribution channel

Corporate partnerships

Agent Network

Branch Network

Internet Office

Telephone Branch

85848382818079787776757473

4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007

By segments

Corporate Banking

Individuals

Small Business

Private Banking

Non-residents


Financial Summary 1st Quarter March 08 04. Customer activity 5

04. Customer activity

In the first quarter of the year, quality continued to be a variable that sets Bankinter apartfrom rival banks, as evidenced by its results, with an Overall Global Customer SatisfactionIndex (ISN) of 76.21, 6.32 points above the market average (widening the gap by 0.29points with respect to the last quarter of 2007).

Once again this quarter, the customer segment displaying the highest level ofquality appreciation was Foreign Customers, with an ISN of 82.24 points; followed byPersonal Finance, with a score of 76.39; and Private Banking, with 76.39 points.

Of all the Bank’s networks, the Agent Network was the one best perceived bycustomers, scoring an ISN of 77.34 points, followed by Virtual Branches, with a score of76.86.

The platform with the highest level of perceived satisfaction is Internet Individuals,with an ISN score of 79.53 points; this result is all the more impressive if it is taken intoaccount that 52.4% of the Bank’s total transactions are now conducted through this channel.

In this quarter, the quality perceived by customers in the mortgage loan process wasalso satisfactory, with the Bank achieving an ISN score of 72.46. The churn rate fell 0.75%quarter-on-quarter to 6.49%.

100

80

60

40

20

0

2000 2002 2004 2006 1Q 2008

Evolution of transactions by channel (%)

40%

52.4%

32.5%

Cards Branch NetworkInternetCellular phones Telephone Banking Electronic Banking


Financial Summary 1st Quarter March 08 04. Customer activity 6

Use of channels

6.5

6.4

6.3

6.2

6.1

4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007

Products by customer

27%

33%

40%

1 channel

2 channels

3 channels

Nu

mbe

rs o

f pr

odu

cts

8

7

6

5

4

4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007

Churn rate

% A

nn

ual

Rat

e 6.49

5.59

6.43

6.28


Financial Summary 1st Quarter March 08 05. Balance sheet 7

05. Balance sheet

Assets

Cash on hand and on deposits at central banks

Trading portfolio

Available for sale portfolio

Loans

Due from banks

Customer loans

Other assets

Hedge derivatives and macro-derivatives

Other assets available for sale

Affiliates

Intangible assets

Accrual accounts

Total assets

Equities and liabilities

Liabilities

Trading portfolio

Financial liabilities at amortized costs

Due to banks

Customer deposits

Marketable debt securities

Subordinated debt

Other liabilities

Hedge derivatives and macro-derivatives

Write-offs and provisions

Accrual accounts

Capital with nature of financial liabilities

Total liabilities

Equity

Equity adjustments due to valuation

Equity

Total equity

Total equity and liabilities

Var. 03/31/2008-12/31/2007 Var. 03/31/2008-03/31/2007

03/31/2008 12/31/2007 Amount % 03/31/2007 Amount %

551,785 946,486 -394,701 -41.70 254,723 297,062 116.62

2,511,171 1,669,865 841,306 50.38 3,567,591 -1,056,420 -29.61

3,681,071 3,747,014 -65,943 -1.76 3,766,100 -85,029 -2.26

43,358,309 42,393,702 964,607 2.28 38,331,302 5,027,007 13.11

4,608,513 4,414,853 193,660 4.39 5,165,598 -557,085 -10.78

38,186,777 37,580,125 606,652 1.61 32,879,263 5,307,514 16.14

563,019 398,724 164,295 41.21 286,441 276,578 96.56

60,316 68,443 -8,127 -11.87 73,557 -13,241 -18.00

5,939 4,493 1,446 32.18 4,054 1,885 46.50

166,835 154,617 12,218 7.90 115,925 50,910 43.92

372,961 371,578 1,383 0.37 348,403 24,558 7.05

299,527 292,482 7,045 2.41 529,168 -229,641 -43.40

51,007,914 49,648,680 1,359,234 2.74 46,990,823 4,017,091 8.55

1,341,152 927,436 413,716 44.61 2,210,715 -869,563 -39.33

47,015,849 46,250,570 765,279 1.65 41,868,227 5,147,622 12.29

5,863,253 6,263,232 -399,979 -6.39 5,314,114 549,139 10.33

23,628,395 22,540,818 1,087,577 4.82 21,262,550 2,365,845 11.13

16,045,571 16,233,470 -187,899 -1.16 14,243,803 1,801,768 12.65

576,125 571,575 4,550 0.80 643,527 -67,402 -10.47

902,505 641,475 261,030 40.69 404,233 498,272 123.26

30,426 22,028 8,398 38.12 307 30,119 9810.75

146,937 149,989 -3,052 -2.03 618,916 -471,979 -76.26

268,369 204,431 63,938 31.28 311,223 -42,854 -13.77

348,770 348,809 -39 -0.01 348,925 -155 -0.04

49,151,503 47,903,263 1,248,240 2.61 45,358,313 3,793,190 8.36

-10,177 -32,561 22,384 -68.74 607 -10,784 -1776.61

1,866,588 1,777,978 88,610 4.98 1,631,903 234,685 14.38

1,856,411 1,745,417 110,994 6.36 1,632,510 223,901 13.72

51,007,914 49,648,680 1,359,234 2.74 46,990,823 4,017,091 8.55


Financial Summary 1st Quarter March 08 06. Customer funds and lending 8

06. Customer funds and lending

Customer funds

Customer deposits

Government entities

Residents

Demand deposits

Savings deposits

Time deposits

Secur. sold under repurchase agreement

Nonresidents

Adjustments due to valuation


Total

Off-balance-sheet managed funds

of which:

Mutual funds

Pension funds

Credit facilities and loans

Lending to government entities

Lending to residents

Commercial bills

Secured loans

Leasing

Other credit facilities

Lending to nonresident borrowers

Nonperforming loans

Subtotal

Loan loss allow. (excl. off-balance-sheet risks)

Other adjustements due to valuation

Total

Total ex-securitization

Var, 03/31/2008 - 03/31/2007

03/31/2008 03/31/2007 Amount %

23,628,395 21,262,550 2,365,845 11.13

408,720 1,482,156 -1,073,436 -72.42

22,370,449 19,177,822 3,192,627 16.65

8,701,144 8,538,992 162,152 1.90

98,168 102,278 -4,110 -4.02

6,674,879 4,601,064 2,073,815 45.07

6,896,258 5,935,488 960,770 16.19

705,627 513,542 192,085 37.40

143,599 89,030 54,569 61.29

16,045,571 14,243,803 1,801,768 12.65

39,673,966 35,506,353 4,167,613 11.74

10,455,536 11,907,206 -1,451,669 -12.19

7,504,335 9,203,409 -1,699,074 -18.46

1,103,018 1,081,082 21,936 2.03

67,563 42,802 24,761 57.85

37,427,430 32,457,624 4,969,806 15.31

1,586,440 1,625,174 -38,734 -2.38

26,660,377 22,842,686 3,817,691 16.71

1,447,779 1,196,722 251,057 20.98

7,732,834 6,793,042 939,792 13.83

917,643 705,646 211,997 30.04

200,671 101,171 99,500 98.35

38,613,307 33,307,243 5,306,064 15.93

559,336 512,255 47,081 9.19

132,806 84,275 48,531 57.59

38,186,777 32,879,263 5,307,514 16.14

40,440,164 35,525,832 4,914,332 13.83


Financial Summary 1st Quarter March 08 07. Analysis of credit risk 9

07. Analysis of credit risk

Risk exposure ex securitization

Total nonperforming balance

Total allowances

Mandatory allowances

Generic

Specific

% Nonperf. loans/Total risk exposure (ex securit.)

% Nonperforming loans/Total risk exposure

% Nonperforming mortgages/Total mortgages

% Recorded alowance/Nonperforming loans

% Recorded alowance/unsecured nonperforming

Variation

03/31/2008 03/31/2007 Amount %

43,519,287 38,633,727 4,885,560 12.65

202,288 102,821 99,467 96.74

592,700 544,757 47,944 8.80

592,700 544,757 47,944 8.80

526,953 509,405 17,548 3.44

65,747 35,352 30,395 85.98

0.46 0.27 0.20 74.65

0.49 0.29 0.20 68.97

0.25 0.14 0.11 79.43

293.00 529.81 -236.82 -44.70

241.07 395.34 -154.27 -39.02

610

550

490

430

370

310

250

190

130

70

4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007

Nonperforming loans and allowances

Mil

lion

s of

eu

ros

530

500

470

440

410

380

350

320

290

4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007

Variation in recorded allowance/nonperforming loans

%

293

Allowances

Nonperforming loans

202.29

102.82

544.76

529.81

592.70


Financial Summary 1st Quarter March 08 08. Comparative income statements 10

08. Comparative income statements

Interest revenue

Interest expense

Interests on preference shares

Revenue from equity portfolio

Net interest income

Equity accounting

Fees and commissions

Insurance activity

Trading income

Ordinary income

Personnel expenses

General and administrative costs

Depreciation and write-downs

Other operating items

Operating income

Write-off and provisions

General allowances

Other results

Income before taxes

Corporate income tax

Income after taxes attibuted to the group

ATA

2008 2007 Variation

Amount % s/ATA Amount % s/ATA Amount %

622,784 4.84 474,782 4.13 148,002 31.17

-471,404 -3.66 -338,722 -2.95 -132,682 39.17

-3,809 -0.03 -4,806 -0.04 997 -20.74

2,396 0.02 7,072 0.06 -4,676 -66.12

153,776 1.20 143,132 1.24 10,644 7.44

10,910 0.08 9,894 0.09 1,016 10.27

59,536 0.46 59,574 0.52 -38 -0.06

0 0.00 1,608 0.01 -1,608 -100.00

21,806 0.17 22,262 0.19 -456 -2.05

246,028 1.91 236,470 2.06 9,558 4.04

-66,169 -0.51 -59,937 -0.52 -6,232 10.40

-52,956 -0.41 -44,958 -0.39 -7,998 17.79

-7,592 -0.06 -5,434 -0.05 -2,158 39.71

3,169 0.02 4,258 0.04 -1,089 -25.58

122,480 0.95 130,399 1.13 -7,919 -6.07

-22,484 -0.17 -14,675 -0.13 -7,809 53.21

41 0.00 4,680 0.04 -4,639 -99.12

65 0.00 -248 0.00 313 -126.21

100,102 0.78 120,156 1.04 -20,054 -16.69

-26,447 -0.21 -34,989 -0.30 8,542 -24.41

73,655 0.57 85,167 0.74 -11,512 -13.52

51,743,129 46,635,557 5,107,572 10.95

1801651501351201059075604530

4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007

Income attributed to the Group

Mil

lion

s of

eu

ros

73.66

85.17


Financial Summary 1st Quarter March 08 09. Quarterly statements of income 11

09. Quarterly statements of income

Interest revenue

Interest expense

Interests on preference shares

Revenue from equity portfolio

Net interest income

Equity accounting

Fees and commissions

Insurance activity

Trading income

Ordinary income

Personnel expenses

General and administrative costs

Depreciation and writte-downs

Other operating items

Operating income

Write-off and provisions

General allowances

Other results

Income before taxes

Corporate income tax

Income after taxes attibuted to the group

ATA

Variation

1Q 08 1Q08/1Q07 1Q08/4Q07 4Q 07 3Q 07 2Q 07 1Q 07

622,784 31.17 3.25 603,186 559,615 514,552 474,782

-471,404 39.17 2.20 -461,243 -408,825 -374,785 -338,722

-3,809 -20.74 9.64 -3,474 -3,471 -3,431 -4,806

2,396 -66.12 -62.94 6,466 2,817 2,979 7,072

153,776 7.44 3.62 148,409 153,607 142,746 143,132

10,910 10.27 -6.65 11,687 10,462 9,110 9,894

59,536 -0.06 -3.90 61,954 60,807 61,814 59,574

0 -100.00 - 0 0 980 1,608

21,806 -2.05 32.45 16,464 9,720 25,624 22,262

246,028 4.04 3.15 238,514 234,596 240,274 236,470

-66,169 10.40 -15.34 -78,162 -70,348 -89,847 -59,937

-52,956 17.79 -22.66 -68,471 -48,866 -51,741 -44,958

-7,592 39.71 7.32 -7,074 -6,396 -6,074 -5,434

3,169 -25.58 -36.67 5,004 3,662 4,906 4,258

122,480 -6.07 36.38 89,811 112,648 97,518 130,399

-22,484 53.21 -21.92 -28,795 -2,674 -29,489 -14,675

41 -99.12 -99.41 6,978 -313 230 4,680

65 -126.21 -103.79 -1,716 -20,927 141,035 -248

100,102 -16.69 51.03 66,278 88,734 209,294 120,156

-26,447 -24.41 39.05 -19,020 -25,269 -43,321 -34,989

73,655 -13.52 55.86 47,258 63,465 165,973 85,167

51,743,129 50,201,543 48,102,916 47,527,508 46,635,557

135130125120115110105100959085

4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007

Ordinary income Operating income

Mil

lion

s of

eu

ros

250

240

230

220

210

200

190

4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007

Mil

lion

s of

eu

ros

122.48

130.40246.03

236.47


Financial Summary 1st Quarter March 08 10. Fees 12

10. Fees

Fees paid

Fees paid to other banks

Fees paid to agents. virtual banking

Total fees paid

Fees received

Guarantee and L/C

Foreign exchange

Payment and collection services

Commercial bills

Sight accounts

Debit and credit cards

Checks

Payment orders

Brokerage services

Underwritting and management fees

Buy/sell orders

Custody and administration

Non-banking financial products

Mutual funds

Pension funds

Insurance

Other fees

Total fees received

Fees and commissions net

Variation

03/31/2008 03/31/2007 Amount %

5,556 5,094 462 9.07

12,735 13,363 -628 -4.70

18,291 18,457 -166 -0.90

4,833 4,835 -2 -0.04

2,469 1,923 546 28.39

19,566 15,765 3,801 24.11

6,335 4,739 1,596 33.68

2,364 2,451 -87 -3.55

8,457 6,383 2,074 32.49

470 284 186 65.49

1,940 1,908 32 1.68

16,293 18,803 -2,510 -13.35

6,725 7,191 -466 -6.48

4,101 6,098 -1,997 -32.75

5,467 5,514 -47 -0.85

22,976 24,503 -1,528 -6.23

15,694 19,308 -3,614 -18.72

844 3,643 -2,799 -76.82

6,437 1,552 4,885 314.82

11,690 12,202 -512 -4.20

77,827 78,031 -205 -0.26

59,536 59,574 -38 -0.06


Financial Summary 1st Quarter March 08 11. Yields and costs 13

11. Yields and costs

Cash on hand and on deposit at Central Bank

Due from banks

Credit facilities and loans (a)

Debt securities

Equity portfolio

Average earnings assets (b)

Other assets

Average total assets

Due to central banks

Due to banks

Money market trans. through counterparties

Customer funds (c)

Customer deposits


Subordinated liabilities


Average interest bearing funds (d)

Other liabilities

Average total funds

Customer spread (a-c)

Net interest margin (b-d)

03/31/2008 03/31/2007

weighting rate weighting rate

0.99 3.55 1.01 2.78

9.64 4.00 10.99 3.70

73.27 5.23 68.38 4.51

11.57 4.03 13.87 3.81

0.71 2.63 1.17 5.26

96.18 5.05 95.42 4.39

3.82 4.58

100.00 4.86 100.00 4.19

2.06 4.77 0.00 0.00

10.90 3.84 19.02 3.51

0.09 4.05 0.13 2.74

77.61 3.95 70.85 3.09

45.55 3.39 40.70 2.53

32.06 4.75 30.15 3.85

1.12 5.22 1.30 4.60

0.67 4.39 0.75 5.59

92.45 3.96 92.05 3.20

7.55 7.95

100.00 3.66 100.00 2.95

1.28 1.42

1.09 1.19


Financial Summary 1st Quarter March 08 12. Quarterly yields and costs 14

12. Quarterly yields and costs

4Q07 3Q07 2Q07 1Q07 4Q06

weight. rate weight. rate weight. rate weight. rate weight. rate

Cash on hand and on deposit

at central bank

Due from banks

Credit facilities and loans (a)

Debt securities

Equity portfolio

Average earnings assets (b)

Other assets

Average total assets

Due to central banks

Due to banks

Money market transactions

through counterparties

Customer funds (c)

Customer deposits


Subordinated liabilities


Average interest bearing funds (d)

Other liabilities

Average total funds

Customer spread (a-c)

Net interest margin (b-d)

0.99 3.55 0.92 3.49 0.98 2.88 0.94 3.26 1.01 2.78

9.64 4.00 11.15 4.05 12.52 4.06 12.10 3.89 10.99 3.70

73.27 5.23 73.55 5.14 73.49 4.93 70.03 4.69 68.38 4.51

11.57 4.03 10.42 4.16 8.64 4.03 11.37 3.93 13.87 3.81

0.71 2.63 0.66 7.74 0.89 2.60 1.19 2.11 1.17 5.26

96.18 5.05 96.69 4.98 96.52 4.81 95.63 4.57 95.42 4.39

3.82 3.31 3.48 4.37 4.58

100.00 4.86 100.00 4.82 100.00 4.64 100.00 4.37 100.00 4.19

2.06 4.77 1.44 4.71 0.11 4.26 0.00 0.00 0.00 0.00

10.90 3.84 11.40 3.87 13.08 3.98 17.10 3.80 19.02 3.51

0.09 4.05 0.12 4.15 0.03 4.02 0.12 3.83 0.13 2.74

77.61 3.95 78.01 3.92 77.18 3.59 72.99 3.33 70.85 3.09

45.55 3.39 43.94 3.27 44.37 3.03 42.68 2.79 40.70 2.53

32.06 4.75 34.07 4.75 32.81 4.34 30.31 4.10 30.15 3.85

1.12 5.22 1.16 5.11 1.20 4.80 1.34 4.76 1.30 4.60

0.67 4.39 0.69 3.95 0.73 3.95 0.73 3.94 0.75 5.59

92.45 3.96 92.82 3.93 92.34 3.65 92.27 3.43 92.05 3.20

7.55 7.18 7.66 7.73 7.95

100.00 3.66 100.00 3.65 100.00 3.37 100.00 3.16 100.00 2.95

1.28 1.22 1.34 1.36 1.42

1.09 1.06 1.15 1.14 1.19

6

5

4

3

2

1

4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007

Evolution Customer spread Return on lending and Cost of customer funds

An

nu

aliz

ed Q

uar

terl

y ra

te

1.45

1.40

1.35

1.30

1.25

1.20

4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007

An

nu

aliz

ed Q

uar

terl

y ra

te

1.28

1.42 5.23

Coste de recursos de clientesRendimiento del crédito

4.51 3.95

3.09


Financial Summary 1st Quarter March 08 13. Contribution by business areaFunds and lending by segment

15

13. Contribution by business area

Variation

03/31/2008 03/31/2007 Amount %

Customers business divisions

Personal Finance

Private Banking

Corporate Banking

Individuals

Small and Medium Size Companies

Non-Residents

Capital Markets

Other businesses

General allowances

Corporate Center

Income after taxes attrib. to the group

Pro-memoria:

Asset management fees

77,112 75,871 1,241 1.64

7,574 8,371 -797 -9.52

12,087 14,422 -2,335 -16.19

18,699 16,532 2,167 13.11

24,684 23,158 1,526 6.59

12,141 11,355 786 6.93

1,927 2,034 -106 -5.23

5,707 10,778 -5,071 -47.05

10,018 14,046 -4,027 -28.67

-2,848 -6,253 3,405 -54.45

-16,334 -9,274 -7,060 76.12

73,655 85,167 -11,512 -13.52

17,500 21,269 -3,769 -17.72

-13,6%más que en el mismoperiodo de 2006

BDI

Funds and lending by segment

Variation

Ordinary funding 03/31/2008 03/31/2007 Amount %

Finance

Private

Corporate

Individuals

SMEs

Foreigners

TOTAL

Lending

Finance

Private

Corporate

Individuals

SMEs

Foreigners

TOTAL

1,876,046 1,653,449 222,597 13.46

3,783,335 2,941,588 841,747 28.62

3,477,137 3,269,378 207,759 6.35

5,295,055 4,002,871 1,292,184 32.28

2,824,199 2,321,653 502,546 21.65

262,527 270,363 -7,836 -2.90

17,518,300 14,459,301 3,058,999 21.16

1,588,645 1,279,861 308,784 24.13

3,961,151 3,048,714 912,438 29.93

5,383,886 4,686,788 697,098 14.87

21,378,193 19,455,545 1,922,648 9.88

6,998,042 5,688,458 1,309,584 23.02

877,832 748,016 129,816 17.35

40,187,748 34,907,381 5,280,367 15.13


Financial Summary 1st Quarter March 08 14. Shareholders equity and rating 16

14. Shareholders equity and rating

Variation

12/31/2007 12/31/2006 Amount %

Paid-in capital and reserves

Capital with nature of financial liability

Revaluation reserve

Treasury stock

Intangible assets

Tier 1

Revaluation reserve

Subordinated debt financing

Recorded general loan loss allowance

Other deductions

Tier 2

Total Equity

Risk-weighted assets

Tier 1 (%)

Tier 2 (%)

Capital ratio (%)

Excess (*) Ratios estimated on the basis of the draft Circular on Determination and Control of Minimum Capital published

by the Bank of Spain.

Internal models, as yet pending official approval, are applied to the following portfolios: home mortgage loans,

individuals, small businesses and medium-sized businesses.

1,783,127 1,687,154 95,973 5.69

343,165 343,165 0 0.00

-52,626 -55,754 3,128 -5.61

-66,981 -49,631 -17,350 34.96

-98,984 -117,310 18,326 -15.62

1,907,701 1,807,624 100,077 5.54

103,791 106,511 -2,720 -2.55

537,851 537,851 0 0.00

190,781 201,962 -11,181 -5.54

-85,972 -80,697 -5,275 6.54

746,452 765,627 -19,176 -2.50

2,654,152 2,573,251 80,901 3.14

27,683,076 27,186,601 496,476 1.83

6.89 6.65 0.24 3.61

2.70 2.82 -0.12 -4.26

9.59 9.47 0.12 1.27

439,506 398,323 41,183 10.34

Short term Lomg term Outlook

Moody’s P-1 Aa3 Stable

Standard & Poor’s A1 A Positive

Ratings


Financial Summary 1st Quarter March 08 15. Variation in net worth16. Cash flow statement

17

15. Variation in net worth

2007 2006

Balance at January 1

Dividends

Capital increase

Reserve - available-for-sale

Income for the year

Other variations

Balance at March 31

1,745,417 1,584,602

-31,378 -26,836

56,103 14,196

22,384 -23,325

73,655 85,167

-9,770 -1,294

1,856,411 1,632,510

16. Cash flow statement

2007 2006

Cash and Cash Equivalents Balance at January 1

Net cash flow - operating activities

Net cash flow - investment activities

Net cash flow - financing activities

Cash and Cash Equivalents Balance at March 31

946,486 539,178

-354,665 -297,666

-8,522 -6,639

-31,513 19,850

551,785 254,723


Financial Summary 1st Quarter March 08 17. Creation of shareholder value 18

17. Creation of shareholder value

Period per share data (euros)

Earnings per share

Diluted earnings per share

Dividend per share

Book value per share

Price at beginning of year

Low

High

Closing price

Appreciation in last quarter (%)

Appreciation in last 12 months (%)

Stock market ratios

Price/Book value (times)

PER (price/earnings. times)

Dividend yield (%)

Number of shareholders

Number of shares

Number of shares held by nonresidents

Average daily trading (number of shares)

Average daily trading (thousands of euros)

0.18

0.18

0.08

4.56

12.55

9.20

12.96

10.05

-19.92

-18.09

2.20

13.63

2.97

82.258

405,893,880

156,277,190

3,899,529

39,756

5,4005,2505,1004,9504,8004,6504,5004,3504,2004,0503,900

4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007

Variations in earnings and dividend per share Bankinter’s market capitalization trend

Mil

lion

s of

eu

ros

0.50

0.40

0.30

0.20

0.10

0.00

4Q 2006 1Q 2007 2Q 2007 3Q 2007 4Q 2007

Eu

ros

0.22

0.08 4,079.230.07

4,849.66

0.18

EPS DPS


Financial Summary 1st Quarter March 08 18. People 19

18. People

Variation

03/31/2008 03/31/2007 Amount %

Number of employees (*)

Average length of service of employees (in years)

Average age (in years)

Employee distribution by gender (%)

Men

Woman

Workforce that has logged in from a remote system (%)

Internal job rotation (%)

External turnover (%)

Empl. with univ. degrees and postgrad. studies (%)

(*) Full-time equivalent

(*) Data on mobile Resource Turnover in last 12 months.

4,582 4,093 489.00 11.95

9.57 10.12 -0.55 -5.43

35.97 36.35 -0.38 -1.05

51.54 52.65 -1.12 -2.12

48.46 47.35 1.12 2.36

27.66 28.85 -1.19 -4.13

28.83 33.79 -4.96 -14.68

9.99 10.49 -0.50 -4.77

72.58 71.83 0.75 1.04

12.2

Number of employees (%)

increase of on 2007


Financial Summary 1st Quarter March 08 19. Quarterly events 20

19. Quarterly events

Annual General MeetingAt the 2008 Annual General Meeting, Bankinterconsolidated its high degree of compliance with therecommendations of the Unified Code of Good Governanceby applying new measures to reinforce its rules for goodgovernance and shareholder and market transparency.

The proposals approved by the Annual GeneralMeeting included most notably the ratification of theBank’s two new directors: Gonzalo de la Hoz (as a non-executive director) and Jaime Terceiro (as an independentdirector), who had been co-opted by Bankinter’s Board ofDirectors at its ordinary meeting in February to fill thevacancies that had existed on the Board until that date.The two appointments were agreed upon following aproposal by the Appointments and RemunerationCommittee and after a favourable report had been issuedby the Corporate Governance Committee.

The Annual General Meeting also approved the re-election, for four years, of José Ramón Arce as anindependent non-executive director.

Awards and AcknowledgementsBankinter’s intranet was included by Nielsen NormanGroup in the select group of “the ten best intranets”worldwide, based on the study conducted each year by thisinternationally renowned consultancy firm, in which theintranets of enterprises from all sectors of the economy areanalysed. The ten award-winning organisations are basedin six different countries and have workforces ranging from200 to 200,000 employees. Bankinter’s intranet was theonly Spanish intranet to be selected.

Furthermore, according to the 5th “Inter-industryWeb Accessibility Study” published in January by theDiscapnet Infoaccesibility Observatory, Bankinter has themost accessible private website (and the second mostaccessible site in the overall ranking). This study,performed by consultants from Technosite, the ONCEFoundation company responsible for managing Discapnet,evaluates a sample of around one hundred websites ofprivate and public sector enterprises, university portals,digital newspapers, etc. The evaluation technique appliedin the study is based on a selection of criteria that affectthe accessibility of the website (description of images,labelling of forms, use of frames, codes, etc.). According tothe report, Bankinter’s portal improved its accessibility by51% with respect to the results of the previous study,achieving the highest percentage rise of all the websitesanalysed, and outperformed 81% of them in terms offulfilment of the aforementioned criteria.

The now-traditional awards for the best financialproducts, distributed by the investors’ magazine “Mi Carterade Inversión”, gave Bankinter Gestión de Activos the prize

for the Best Equities Fund Manager. The extraordinaryprestige enjoyed by the “Mi Cartera de Inversión” awards isattributable to their long history and the fact that it is themagazine’s readers themselves who vote for the winners ineach of the categories.

Also, in what has come to be an habitual occurrence,the annual Lipper Cinco Días awards singled out two ofBankinter’s investment funds as the best products in theirrespective categories: “BK Sector Finanzas”, as the best fundin the last five years in the financial industry, and“Bankinter Fondtesoro Largo Plazo”, as the best performingmedium-term fixed-income fund at in the last three years.Similarly, the Investment Fund Awards of the “Expansión”newspaper recognised “BK Pequeñas Compañías” as thebest Mid&Small Caps International Shares fund.

Mobility and InternetBankinter has started to distribute value-added mobiletelephony services to its customers under an agreemententered into in December with KPN, the largest operator inthe Netherlands. The Bank’s customers can already sign upto an integrated fully personalised telephony and bankingservice, with transparent, competitive charges andBankinter’s customary standards of quality. A noteworthyfeature is the flat rate of EUR 0.14 per minute for calls toany landline (except special-rate numbers) or mobilephone, billed per second from the very first second. Themain advantage of the service is that it includes a cost ofEUR 0 for calls to the telephone number representing thehighest proportion of the customer’s expense each month(excluding special-rate numbers).

At the end of the quarter, Bankinter’s ‘Bank on themobile’ service completed its third year as a customertransaction and relationship channel. It accounts for 5% oftotal customer transactions with the Bank and close to160,000 customers have already used one or other of itsapplications. The latest development in this service hasbeen the launch of a version compatible with Apple’siPhone handset and iPod Touch multimedia player.Customers can use this version to make accounttransactions enjoying all the usability features of theseelectronic devices.

Bankinter has incorporated an electronic national IDcard log-in system to its Internet operations. This newsystem for identification of customers when they log in toBankinter.com will, on the one hand, raise the level ofsecurity for customers in their on-line transactions and, onthe other, represent the first step towards theimplementation, in the short term, of digital transactionsigning. The possibility of accessing the website using anelectronic national ID card will co-exist with user-name andpassword-based access, the only system available to date,so that customers will be able to choose to consult theiraccounts using one or other system.


Bankinter SAPaseo de la Castellana, 2928046 Madrid (Spain)T. +34 913 397 500F. +34 913 398 323Telex. 42760 BANKI ESwift: BKBK ES MM

www.bankinter.com

Financial Summary1st quarter · March 2008

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