Business · Companies · 23 hrs ago
Bankinter aims to fund Portugal and Ireland growth with local deposits
Bankinter wants its businesses in Portugal and Ireland to fund more lending with local deposits as both markets grow.
The Spanish bank is working to close a funding gap in Portugal and build its deposit base in Ireland.
Its group-wide target is to keep loans below deposits, measured by a loans-to-deposits ratio under 100%.
The ratio was 97.6% at the end of September, up from 96.5% a year earlier, as lending grew faster than deposits.
Portugal’s ratio was 114% in September, after lending rose 20% since the end of 2024 and retail deposits rose 14%.
In Ireland, Bankinter is expanding from specialist lending into digital, full-service banking, and expects balancing lending with local deposits to take longer.
Local savings are central to supporting future lending growth, while Portugal and Ireland together account for 17% of group revenue, with Bankinter aiming for 20% in the medium term.
Bankinter wants its Portugal and Ireland businesses to fund more of their lending growth with deposits raised locally.
The bank aims to keep its group loan-to-deposit ratio below 100%; it stood at 97.6% at the end of September.
In Portugal, the ratio was 114% in September, as loans have grown faster than retail deposits since the end of 2024.
In Ireland, Bankinter is expanding from specialist lending into digital universal banking and building its deposit business.
Portugal and Ireland account for 17% of group revenue, and Bankinter aims to raise that share to 20% in the medium term.
- Who
- Bankinter, the Spanish bank, is seeking to expand its businesses in Portugal and Ireland.
- What
- It wants to fund more lending growth in both countries with deposits raised locally.
- When
- The strategy is under way; the group loan-to-deposit ratio was measured at the end of September. The year is not stated.
- Where
- Portugal and Ireland, alongside Bankinter’s group-wide balance sheet.
- Why
- To strengthen the businesses’ financial autonomy and support loan growth with local funding.
This story does not have two clearly opposing sides.
Bankinter’s credit in Portugal began a period of growth during which it increased by 20%.
Bankinter launched two deposit products in Ireland.
Bankinter had attracted 100,000 million in Ireland, according to the article.
Bankinter’s group loan-to-deposit ratio stood at 97.6%, while the ratio in Portugal was 114%.
- Group loan-to-deposit target
- Below 100%
- Group loan-to-deposit ratio
- 97.6% at the end of September, compared with 96.5% a year earlier
- Portugal loan-to-deposit ratio
- 114% in September
- Portugal credit growth
- 20% since the end of 2024
- Ireland business growth
- 26% in the past year
- Portugal and Ireland share of group revenue
- 17%; Bankinter aims for 20% in the medium term
What people are saying
As we continue to expand our network, our objective is to finance more and more of future credit growth with deposits generated locally, thereby building, over time, a more balanced and self-funded business.
This will remain part of the debate as expectations for mid-single-digit loan growth continue to exceed expected low-single-digit deposit growth.