Bankinter 2010 profit below forecast - down 41%

 

Bankinter, Spain's smallest-blue chip bank, missed forecasts with a 41 percent fall in full-year net profit, hit by higher financing costs and greater provisions against bad loans.

Bankinter shares were down 1.6 % in early trading.

Spanish banks have been suffering rising levels of unpaid loans in an ailing economy and amid a deposit price war started to secure funds from retail accounts.

Bankinter said 2010 net profit fell to 151 million euros, compared with an average forecast for 164 million in a Reuters poll in which estimates were in a 150-202 million range.

Net interest income fell 31 % percent to 550 million euros, in line with the 552 million forecast.

The bank made provisions of 990 million euros against bad loans and falling asset prices, up 13 %. Bad property debt represents 2.4 % of total loans.

The percentage of bad loans to total loans was 2.87 % at end-December, much less than the sector average for the Spanish banking system at end-November of 5.68 %.