Bankinter (BME:BKT) Stock Faces Low Bad Loan Coverage Despite 40.8% Net Margin In Q2 2026

Bankinter (BME:BKT) has reported Q2 2026 revenue of €740.2 million and net income of €314.6 million, setting a clear benchmark for how the bank is currently translating its loan book and interest margin into bottom line results. The company has seen quarterly revenue move from €660.3 million in Q1 2025 to €740.2 million in Q2 2026, while trailing twelve month net income reached €1.15 billion, giving investors a results set anchored by robust margins rather than one off items. With a trailing net profit margin of 40.8% and a current share price of €16.08, the latest earnings put profitability front and center for anyone assessing how durable Bankinter's current margin profile might be.

See our full analysis for Bankinter.

With the headline numbers on the table, the next step is to see how Bankinter's recent results line up against the widely followed community narratives around its growth, risks, and profit sustainability, and where those stories might need an update.

See what the community is saying about Bankinter

Cost efficiency and margins stay tight at Bankinter

• On a trailing basis, Bankinter reported a net profit margin of 40.8% with a cost to income ratio of 36.09%. This means just over a third of every euro of income is going to operating costs.
• Analysts' consensus view links Bankinter's cost control and margin profile to its focus on digital banking and wealth management. However, the data also show non performing loans at around €1.8 billion over the last few quarters, which keeps credit quality in focus rather than letting the narrative rest only on efficiency and technology gains.
  • The consensus narrative points to low and stable credit loss provisions and sector leading NPL ratios. At the same time, the reported non performing loans figure of €1,808.7 million in Q1 2026, and similar levels in previous quarters, reminds investors that asset quality still needs to be monitored alongside the margin profile.
  • Commentary around disciplined deposit cost management and recurring fee revenue lines up with the 40.8% net margin. The fact that earnings growth over the last year was 13%, rather than tracking much higher than that, indicates the story is about steady profitability rather than rapid expansion.

Loan book growth versus low bad loan coverage

• Total loans moved from €90.3 billion in Q1 2025 to €100.0 billion in Q1 2026, while the allowance for bad loans is described as low at 70%. As a result, investors are looking at a larger loan book with relatively modest coverage for potential losses.
• From a bearish perspective, critics highlight concentration in Spain and the risk of a turn in credit quality. However, the reported non performing loans stayed around €1.9 billion in Q1 2025 and €1.8 billion in Q1 2026, which tempers the idea that asset quality has already weakened even as the allowance ratio is flagged as low.
  • Bears also point to regulatory pressures and potential future capital needs. In that context, the combination of a €100.0 billion loan book and 70% bad loan coverage means any future increase in non performing loans could weigh more heavily than if coverage were closer to 100%.
  • At the same time, the trailing net profit margin of 40.8% and trailing twelve month net income of about €1.15 billion provide a profitability buffer, which runs counter to the bleakest bearish expectations that credit risk would already be heavily weighing on earnings.

Do not ignore how skeptics frame that trade off between a growing loan book and low bad loan coverage, especially when you read the 🐻 Bankinter Bear Case.

Valuation gap between P/E and DCF fair value

• Bankinter trades on a trailing P/E of 12.5x versus a DCF fair value of €22.72 per share and a current share price of €16.08. On this basis, the modeled fair value sits about €6.64 above where the stock is currently trading.
• Consensus narrative suggests that reported earnings growth of 13% over the last year and a five year annualized rate of 23.3% help justify a premium P/E to the broader European banks industry at 11.9x. However, the point that earnings are forecast to grow around 7.7% per year, below the wider Spanish market forecast, raises a question over how much of the gap to the DCF fair value investors may be willing to close.
  • The P/E of 12.5x sitting below the cited peer group average of 14.3x aligns with the view that Bankinter could potentially re rate closer to peers if its historic profit levels and 40.8% margin were to continue.
  • On the other hand, earnings growth forecasts that trail the Spanish market, combined with an unstable dividend record and 70% bad loan coverage, give a numerical basis for those who argue the discount to the €22.72 DCF fair value might not narrow quickly.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Bankinter on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With mixed views around Bankinter's growth, risks and valuation, it makes sense to check the numbers yourself and decide where you stand. To weigh both sides of the story quickly, take a closer look at the 3 key rewards and 2 important warning signs.

See What Else Is Out There Beyond Bankinter

Bankinter combines a 70% bad loan coverage ratio, an unstable dividend record and earnings growth forecasts below the wider Spanish market, which keeps some investors cautious.

If you are concerned about that mix of relatively low loss coverage and credit risk, it is worth balancing your portfolio with companies from the solid balance sheet and fundamentals stocks screener (419 results) to focus on more resilient balance sheets and steadier fundamentals.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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