Bankinter SA (BKT), the first Spanish bank to report earnings, posted a second-quarter loss after complying with a government order to book higher real estate provisions.
The loss of 26.8 million euros ($33 million) compared with a profit of 51.7 million euros a year earlier, the Madrid-based lender said in a filing to regulators today. The average estimate of seven analysts surveyed by Bloomberg was for a profit of 15.5 million euros. Bankinter shares rose.
Lenders are responding to two orders this year to recognize more losses on real estate as the government seeks to bolster confidence in the banking system and lower Spain’s borrowing costs amid a five-year property slump. Bankinter, which has half of its loans in mortgages, said it set aside 275.2 million euros in the first half to comply with the cleanup ahead of schedule.
Bankinter climbed as much as 3.3 percent in Madrid trading and was up 2.3 percent to 2.50 euros at 10.01 a.m., boosting the bank’s market value to 1.34 billion euros.
Net interest income rose 27 percent to 174 million euros as the margin between lending yields and the cost of liabilities widened, the lender said. Bad loans as a proportion of total lending increased to 3.91 percent in June from 3.67 percent in March, the bank said.
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