Bankinter, S.A. (BKT) Earnings Call Transcript

Good morning, and welcome to Bankinter's Results Presentation for the first half of 2026. Our financial statements were posted with market authorities early this morning and all materials can be found on our corporate website. Please refer to the disclaimer in the presentation, and please note that this call is being recorded. We are joined today by our Chief Executive Officer, Gloria Ortiz; and our Chief Financial Officer, Jacobo Garcia. Gloria, over to you.

Thank you, Laurie. Before talking about results, I wanted to express my sincere congratulations to the Spanish football team for the success in the World Cup last week from the whole of Bankinter team. Well, coming back to results. We have delivered another strong quarter and excellent results for the first half of the year. Affitable growth and disciplined execution once again translated into strong shareholder value creation, EUR 605 million of net profit, a ROTE above 20% continued capital generation and 17% increase in shareholder value. What is quite encouraging is the quality and consistency of the performance. We continue to grow while improving margins, maintaining excellent asset quality and strengthening capital. This is another demonstration of the Bankinter way, grow better, execute better and create more value through the cycle. The first pillar of our model is diversified organic growth, supported by the strength of our franchise and our continued ambitions to grow across all business and geographies. Total customer volumes increased by EUR 18 billion or 8% over the last 12 months. Customer lending grew by 5%, while customer funds increased by 10%, supported by a 2% increase in on-balance sheet retail deposits and an excellent 20% growth in assets under management, reflecting both net inflows into our Wealth Management business and the quality of our customer base. Growth remains well diversified geographically with Spain providing scale and Portugal and Ireland continuing to grow at double-digit rates. Growing better is not only about volume. It is also about building a stronger and more diversified revenue base. Gross operating income increased by 7.3% in the first half of the year with both net interest income and fees reaching record quarterly levels in the second quarter. Net interest income grew 3% quarter-on-quarter to EUR 589 million, while fee income increased by 17% to EUR 237 million. Importantly, increasing share of our growth is coming from recurring and capital-light fee businesses such as Wealth Management and Brokerage, making our revenue mix more balanced and resilient. The second element of our model is disciplined execution. As we grow, we remain very focused on the 3 levers that sustain value creation over time, efficiency, asset quality and capital generation. Our cost-to-income ratio has improved significantly, falling to 34.3% from 36.1% in 2025. This demonstrates the scalability of our business model and highlights an important point. In Banking, scale alone does not warranty efficiency. What matters is agility, disciplined execution, a culture that remains aligned as the organization grows. These have long been the strength of Bankinter. Asset quality also remains a clear differentiator with an NPL ratio below 2% and a prudent coverage ratio of 69% despite continued growth in customer volumes. At the same time, strong earning generation has allowed us to further strengthen our capital position with CET1 increasing to 12.9%, while maintaining our position as one of the most resilient banks in Europe. The third lever of our model is shareholder value creation. Royalty increased above 20%. Earnings per share grew 11% and shareholder value generation measured through tangible book value plus dividends increased by 17% over the last 12 months. Importantly, strong capital generation allows us to do more than simply grow the business. It gives us the flexibility to invest in attractive opportunities that strengthen the franchise and diversify future earnings streams, including the alternative investment platforms announced this year and our entry into the Netherlands through [indiscernible], while at the same time, continuing to enhance shareholder returns. That is why we continue to view Bankinter as a long-term compounder capable of increasing earnings, creating value and delivering attractive shareholder returns through the cycle. Now I leave you with Jacobo for a more detailed description of our P&L and businesses.

Thank you, Gloria. Good morning. Let me briefly summarize the income statement. Net profit reached EUR 315 million in the quarter, up 8% quarter-on-quarter and 16% year-on-year, bringing first half net profit to EUR 605 million, up 12%. Performance accelerated in the second quarter versus the first, with revenues up 6% quarter-on-quarter and net profit up 8%. Performance, this was driven by strong revenue growth of 7% year-to-date with both NII and fees contributing positively, while costs remain contained and provisions under control. I'll now walk through the main drivers behind these slides in more detail. Next page, NII. NII continued to evolve positively in the second quarter, reaching EUR 589 million, up 5% year-on-year and 3% quarter-on-quarter. This performance reflects solid volume growth across the franchise, together with continued pricing discipline, allowing us to improve customer margin to 2.71%, while keeping NIM broadly stable. On fees, fee income accelerated further in the second quarter, reaching EUR 237 million, up 23% year-on-year, while results include EUR 23 million of relevant income this quarter from a performance fee on the sale of an alternative investment vehicle announced in April. It is worth highlighting that our recurrent Asset Management and Brokerage business still grew by impressive 19% year-on-year, excluding this item. This reflects strong customer activity continued net inflows and increased contribution of higher value-added investment products to our fee-based. Let me spend a moment on Bankinter Investment, which contributed to the -- with the EUR 23 million performance fee we discussed in this previous slide. Importantly, we do not view this as simply a one-off event. It reflects a platform that is reaching real scale and maturity with a growing proportion of vintages entering the state where performance fees and equity accounted earnings can increasingly contribute to results. Since its launch in 2017, we have built a differentiated alternative investment platform that today manages 32 vehicles, serves more than 20,000 investors and has accumulated EUR 5.9 billion of committed capital. Importantly, around 1/3 of committed capital comes from vintages launched before 2020, providing a growing pool of assets approach in the stage where monetization opportunity become increasingly relevant. The corporate transactions announced with Premium and Access Capital Partners last quarter represent the next step in this strategy. They expand our scale, deepen our capabilities and broaden our European footprint while maintaining the capital-light characteristics of the platform. Overall, we believe Bankinter investment is entering a new phase of scale and maturity in the business of alternative investment funds, creating additional opportunities for value creation through management fees, equity accounted earnings and performance related revenues over time. Moving into expenses. Turning to efficiency, we continue to deliver widening positive operating jobs in the first half of this year. As you can see, revenues increased by 7.3%, while expenses grew by only 2.7%, expanding the gap between revenue and cost growth to 4.6 percentage points compared with less than 1 percentage point last year. This reflects a combination of a strong commercial momentum and disciplined cost management. We continue to simplify our corporate structure, invest in technology, in digital capabilities and in growth initiatives while maintaining tight control over our cost base. As a result, our cost-to-income ratio improved further to 34.3%, down from 36.1% in '25, reinforcing the structural efficiency of our business model. Looking at costs, growth remains well contained. Personnel expenses increased by just 1%, with most of the increase coming from amortization, reflecting our continued IT internment in the franchise. Overall, widening operating jaws remain a key driver of profitability growth, efficiency gains and strong capital generation. Let me build on this efficiency a little bit and explain how technology and AI are helping us further enhance the scalability of our business model. Importantly, AI is not about reducing cost, it is a core enabler of our business model, allowing us to manage higher volumes, create additional capacity and provide better service to a growing number of customers without a proportional increase in resources. The chart on the left illustrated this clearly. Since 2020, customer volumes have grown by 55%, while our workforce has increased by only 9% and has remained broadly stable since 2024. At the same time, our branch network remains essentially unchanged from more than 15 years ago. As a result, the annualized cost required to support each EUR 1 billion of customer volumes has decreased by 14%. Put differently, we are handling substantially more business today with broadly the same physical footprint and a largely stable workforce. Today, we continue to invest more than 10% of gross revenues in technology where increasingly embedding AI across the organization. We are deploying -- we have already deployed AI through a combination of top-down initiatives and bottom-up adoption with growing employee engagement and an expanding range of practical use cases across the bank. Moving into the next page. As we continue to grow the balance sheet as quality remains very strong. Cost of risk remained low and stable at 33 basis points despite the strong growth in lending volumes over the last 12 months, while other provisions remain well controlled at just 8 basis points. Together, these metrics continue to demonstrate the quality of our diversified and disciplined growth. Let me conclude the income statement review. The earnings momentum continues to reflect the strength of our business model. Net profit increased to a record of EUR 315 million, up 16% year-on-year and accelerating versus the first quarter, supported by solid revenue growth, positive operating jaws and stable risk costs. Asset quality remains a clear strength of the franchise. NPLs continue to improve, coverage remains robust, and we continue to outperform the sector across all geographies. Risk metrics remain stable and well controlled with no signs of deterioration despite strong business. Moving into capital. Let's -- CET1 closed the quarter at 12.91%, comfortably above our target operating range. The strength of our earliest generation more than offset business growth, allowing us to further strengthen our capital position while continuing to support growth across the franchise. These provide us with significant flexibility to support future growth -- future organic growth, pursue attractive strategic opportunities and deliver enhanced shareholder value. As discussed last quarter, in the coming months, we expect to complete the alternative investment transaction with [indiscernible] Access Capital Partners as well as a pending acquisition of [indiscernible], the Dutch digital platform, which Gloria will cover in a moment. Together, these transactions are expected to have a combined capital impact of less than 40 basis points and are not reflected in today's CET1 ratio. It is also worth noting that the second phase of Spanish [indiscernible] will come into effect later this year, increasing our minimum hardware requirements by approximately 40 basis points. Beyond capital generation, our resilience remains a clear differentiator. The latest EBA stress test once again positioned Bankinter as the most resilient listed bank in the Eurozone, while our Pilot II requirement remains among the lowest in Europe. Moving on to the performance of our geographies and businesses. Spain, Spain continues to perform strongly, with revenues up 6% and pretax profit by 11%. Corporate and SME banking remained particularly strong with lending volumes growing 7%, while Wealth Management continued to deliver robust growth. Overall, strong commercial activity and operating discipline translated into further efficiency gains and another period of double-digit profit growth. Portugal. Turning to Portugal, the business continues to scale rapidly with revenues up 10% and pretax profit up 9% in the first half. Lending volumes increased by 8% and customer funds by 12%, reflecting the continued expansion of the franchise. Importantly, profit growth accelerated during the second quarter, reinforcing the positive trajectory of the business and supporting a strong first half result. Ireland. The business continues to scale and deliver attractive growth. Customer lending increased 24%, led by mortgage balance, which grew by 29% year-on-year. As revenue increased 19%, we continue to generate positive operating leverage, with pretax profit also growing 19%, cost-to-income ratio improving by more than 2 percentage points. Moving into next page, with corporate and SME banking, where growth continues to outpace the market. Lending volumes increased 7% compared with sector growth of 3.6% supporting further market share gains, where our International business remain a key contributor. In our Retail business, customer acquisition remains strong, with salary and digital account balances increasing 20% over the last 12 months. In Mortgages, although we continue to prioritize profitability over volume, we have seen origination trends improved significantly during the second quarter, with June production exceeding June '25 levels by 8%, while maintaining our disciplined pricing approach. This allow us to optimize capital allocation across the group, directing growth towards segments and geographies offering the most attractive risk-adjusted return, including Portugal and Ireland. At the same time, the mortgage-backed book continued to grow at healthy levels, increasing 3% year-on-year to EUR 39 billion. Turning to Wealth Management. The business continues to demonstrate remarkable resilience despite periods of elevated market volatility. Total assets under management and custody increased by EUR 27 billion over the last 12 months, supported by both strong net inflows and positive market performance. In particular, assets under management grew by 20%, while assets under custody increased by 18%, delivering another year of a strong double-digit growth. What is particularly encouraging is that clients continue to entrust us with a larger share of the saving even during periods of uncertainty, reflecting the strength of our Wealth Management franchise, the quality of our client base and the depth of our customer relationships. Before handing back to Gloria, let me take a moment to reflect our ambitions for full year '26. In the second quarter, we continued to deliver strong results. Customer margin recovered to 270 basis points. Recurrent fees remain very strong, supported this case by an extraordinary performance fee from our alternative development vehicles, while efficiency continued to improve and provisions remain well contained. While our certainty around the macroeconomic and interest rate environment remains, our underlying business trends continue to evolve broadly in line with our expectations. Having said that, we continue to deliver solid and diversified volume growth in line with our initial assumptions while maintaining a strong focus on capital allocation and risk-adjusted returns. Therefore, on the lending we continue to expect mid-single-digit growth, supported by resilient economic conditions across our geographies. Across the group, we expect growth trends in the second half to remain broadly consistent with those in the first half with Portugal and Ireland continuing to deliver strong growth in Spain, maintaining solid momentum, particularly in Corporate Banking. We will also continue to actively manage deposit volumes to maintain not only liquidity ratios are at current levels with a deposit to loan ratio remaining slightly above 100% or the loan to deposit slightly below 100%, but also our strong cross-selling activity focused on building up volumes in assets under management and assets under custody, a strong source of stable fee generation and return on tangible equity. On net interest income, our bias is still even more positive. This is supported by continued loan growth and current forward curves. We expect NII to continue growing quarter-by-quarter, allowing us to reach the upper end of our mid-single-digit growth ambition above our expected lending growth for the full year. Once again, higher Euribor rates are supportive to our NII growth. Our NII sensitivity remains similar to previous quarters, with a 7% increase in expected NII for the next 24 months for 100 basis points or late shift increased. While we expect deposit costs to have reached the trough, we continue to target an average customer margin for the year and 270 basis points or slightly above. On fees. Strong recurring growth, combined with the performance fee recognized this quarter from our alternative funds franchise supports and upgrade of our fee growth ambition to low double digit for the full year, from high single digit where we were before. We remain very confident in the outlook for wealth management. We remain fully committed to maintain positive operating jaws. We expect cost growth to remain low, supporting a gap between revenue growth and cost growth at least in line with current levels. Remind you our long-term ambition towards a 30% efficiency ratio is getting closer. In terms of asset quality, our outlook remains stable. We continue to see no signs of deterioration, and we expect the cost of risk to remain around current levels. We also expect to continue generating capital at a strong pace, supporting organic growth, strategic opportunities, shareholder remuneration and resilient management buffers. Over the long term, we expect to allocate excess capital first to profitable growth in our existing businesses and geographies, then to new business opportunities like those recently announced in alternative investment funds and in the Netherlands. And rest assured, any remaining excess capital will be returned to shareholders through the most efficient route as we have done in the past, like for example, with the Linea Directa spin-off in 2021. Finally, we expect to deliver a sustained level of return on tangible equity above 20% in the following quarters, with disciplined capital allocation, disciplined execution and reflecting the long-term strength and sustainability of our business model and our ability to continue creating attractive and compounding value for our shareholders. Thank you, Gloria. Back to you, please.

Thank you, Jacobo. Before I speak about our recent announcement to acquire Tal and enter the Netherlands, I would like to take a step back for a moment. While the geography may be new, the approach is not. The decisions we are making today follow the same principles that have guided Bankinter for decades. What you see on this page is not a result of a particular year or market environment. It is the outcome of a business model that has applied the same principles consistently for decades. Part of the reason for that consistency is our strong alignment with shareholders. Around 30% of our share capital is represented by our Board, management team and employees, we think like owners because we are owners. Over the years, we have combined solid organic growth with the development of new capabilities and selective geographical expansion through joint ventures and bolt-on acquisitions as reflected in the milestone shown in the slide. Whether it was Portugal, [indiscernible] in Ireland, the launch of a digital organization or the alternative investment transactions announced this year, we have consistently focused on opportunities that strengthen the franchise, expand our capabilities and create long-term value without distracting us from our core business or compromising our financial strength. Our long-term track record speaks for itself over 5-, 10- and 15-year periods, we have consistently grown customer lending ahead of the sector while delivering superior value creation for shareholders. We often say that slow and steady wins the race, and we believe our history demonstrates exactly that. Looking ahead, our objective remains unchanged. We will continue to grow prudently allocate capital thoughtfully and invest in opportunities that can strengthen the franchise and create value over time. The initiatives shown on this time line are all examples of that approach. They started small, they required patients, disciplined execution and ultimately became relevant contributors to growth and shareholder value. The acquisition of Talc follows the same logic. It is not a change in strategy, but another step in the same journey, which brings me to the final slide. Let me now spend a moment on [indiscernible] and why we are excited about this opportunity. We see this as an attractive combination of limited downside risk and meaningful long-term upside. With that, we are entering the third largest mortgage market in Europe through established platform. The business that has more than 10 years of operating experience in the Dutch market and currently originates around EUR 1 billion of mortgages each year. At the same time, the Dutch mortgage market combines larger scale, higher yields and historically lower levels of credit risk than Spain. When we closed the transaction, the capital impact will be limited to less than 15 basis points, giving us access to an attractive market by preserving the financial profile that investors expect from Bank Index. What I particularly like about Tap is the flexibility of its business model, Talpa already successfully operates through a strong advice side network, institutional investors and funding through securitization, providing multiple sources of funding to support future growth. As with Portugal and Ireland, our approach will be progressive. We are establishing a new platform that can expand our growth opportunities and diversify earnings over time. Looking further ahead, our ambition remains clear. Spain will continue to be our core business, but we want the group to become increasingly diversified. Over the medium term, we continue to see Spain representing around 70% of group profits. So when I look at [indiscernible] I don't see a small transaction, I see a proven platform that gives us a foothold in a large and attractive market, with limited capital at risk today and multiple avenues to expand earnings over time. Thank you. And back to you, Laurie, so that we can begin the discussion with our analysts.

Thank you, Gloria. Thank you, Jacobo. We'll now move on to the live Q&A. [Operator Instructions] Our first caller is Marta Sanchez from JP Morgan.

My first question is on volumes and margins. With your loan-to-deposit ratio now at 101%, how are you thinking about running the balance sheet from here? Does the priority on protecting deposit costs, limit your capacity to grow loans? Linked to that, how should we think about NIM versus customer spread from here given that NIM went backwards again this quarter even as the customer spread continued to improve. And my second question is on the Netherlands strategy. Can you give us like milestones about earnings contribution, loan growth -- are you just going to be doing mortgages there? Or would you consider launching a savings platform or expanding what you have there with -- through a savings platform? And do you think that growing that business will be consistent with keeping those efficiency gains that you've committed to over the next 3 years?

Marta. Regarding the first question, our loan-to-deposit ratio is at 97% or deposit to loan at 103% at this day. So this is more or less where we want to be. And I think that the answer is, of course, not deposit cost is not a limitation for growth because our ambition is to keep growing in any geographies, in every segment in a profitable way. So funding is not a restriction. We manage closely the loan to deposit, the deposit to loan, we want to keep in the current similar levels in the following quarters. I think we've been running the bank in similar levels in the past quarter, and this is exactly the case. Even though we think that, as I mentioned, the client margin is sustainable, we have quite a positive bias on the evolution of these 270 bps in the future. And coming back to your question also regarding the NIM, the NIM we believe it's in a stable way since client margin are going to be resilient, sustainable, this is positive bias since current forward rates are quite supportive of the NIM of it. So we feel comfortable with where we are running in terms of deposit loan and in terms of NIM.

Marta, I will answer you the second question. Well, I think as I've mentioned during the webcast, the strategy has not changed. So this is a small transaction. The idea is to start slow, like we did, for instance, in a van card in the past. -- to start financing to start financing mortgages, leveraging obviously on Talp on the broker platform and probably using securitizations as they have a service for securitizations to fund these mortgages so that the business is fully compressed on itself. In the future -- well, in the future, obviously, the platform is that it's a good platform also to build upon other businesses like we've done in Avangard. But for the moment, in the medium term, we are going to focus, as I've mentioned, in mortgages, in analyzing and the market. And if we see that there are opportunities in certain businesses, we will see in the future. You also asked if we -- if the 30% in 2030 is at risk. No, I mean this is going to be a very light light operation in terms of costs, so no it shouldn't put at risk 30% objective in cost-to-income.

Thank you, Marta. Our next question comes from Ignacio Ulargui from BNP Paribas.

I have 2 questions, if I may. I mean the first one is on the alternative investments. And then effect of the success fees. I mean, could you just help us a bit better to model? How should we model about this access fees? Because it's -- I mean the relevance of the alternative investment products is increasing within the group. And it looks like that we should be considering this as a bit more recurrent what it could be perceived at this stage. So if you could help us to model a bit, how should we think about these access fees? What is the level that you charge on the asset of the products so that we can get a bit of a sense of how to consider them more recurrent. The second one is if you could elaborate on the competitive landscape in Spain, particularly in the lending side, you have been saying [indiscernible] focus on corporates less [indiscernible] mortgages, you could come back on you have seen any rationalization on the competitive landscape in the mortgage market? And also wanted to get a bit of a sense of how do you see the Irish market given the PTSB transaction? Is this raising some incremental opportunities for you for growth there?

Ignacio. I'll take the first one on the alternative investment. Yes, I mean, definitely, that's why we wanted to dedicate some minutes to the alternative investment business because it's becoming a quite relevant business for us. It's growing. We have a strategic focus on this business. We believe there is a very large and relevant opportunity in the coming years. And therefore, we are putting a lot of effort. We are growing in assets under management in this type of funds. Unfortunately, it is very, very difficult to predict when this transaction will deliver a success or not because the opportunities given by the market is not something that is controlled by ourselves. What I can tell you is that we are coming to a certain level of maturity, where a large number of vehicles have reached higher probability of being sold. And therefore, there is more and more probability of this type of recurrent success fees. So I know it is a little bit contradictory to a one-off can be recurrent. But basically, the message is that definitely, we should expect an increased number of this type of performance fee coming into the future. But unfortunately, it's very, very difficult to share a sense the amount, the volume when, how, et cetera, because this business is run by this way. So unfortunately, I cannot help you in providing you a methodology or how to expect or how to input in your models, the income from this business? And I think it's much more a matter of probability of an average volume, et cetera. As you know, these assets under management funds in alternative doesn't provide us quite long-term stable source of fees. But at the end of the day, we have to sell them to distribute to our -- to the members of these funds and to achieve a much better even very high profitability. So unfortunately, I cannot add any expectation or prediction to this income. But definitely, this is going to be much more recurrent than it's been in the past.

I will take the one about mortgages. Well, the first thing I have to say here is that you know that there is a process like the CNMC open at the moment, precisely that has to do with the prices of mortgages and and competition. So I am not going to -- for respect to the process and also for [indiscernible], I will not talk about mortgage prices at the moment. I can tell you -- what I can tell you is what is there -- well, the decision of actually reducing the production in Spain has been decision of capital allocation to allocate capital in other businesses that were more profitable. As you can see, the reduction rate is diminishing and with time, I think, by the end of the year, we will be probably in the quarter alone not been reducing the production in mortgages in Spain. I said that in Ireland and in Portugal, we are doing pretty well. We are growing at 19% in the new production. But precisely our landing is doing particularly well. PTSB, yes, PTSB, obviously, any corporate transaction that means restructuring closure of branches maybe also a restructuring in the workforce is always an opportunity for the competition, and we will take advantage of it, of course.

Our next question comes from Francisco Riquel from Alantra.

So the first question, I see the cost of deposits has fallen 1 basis points despite the rising interest rate environment. I wonder if you can please elaborate on how you are managing the cost of online deposits and the trade-off with volumes because the online deposits are falling EUR 3 billion Q-on-Q. And then also comment on your expectation for the overall cost of deposits and deposit growth for the rest of '26. In particular here, I also see that you start to print deposit numbers for Ireland for the first time, it's still a small figure, but I wonder if you can update on where are you on the rollout of your deposit franchise in Ireland. And my second question is on fees. I see that you have raised the guidance growth from high single digit to low double digit, including the performance fee. But excluding this one-off fee recurrent fees are also growing 12% in Q2. So I wonder if you can update also on trends and guidance for the recurrent fees if you would be also raising the guidance as well without the performance fee.

Paco, I'll start with the second question. Yes, I mean the increase in guidance is excluding the performance fee. So we believe that the underlying -- I would say, the traditional fees, the assets under management, brokerage, transactional fees are behaving a little bit better than expected. And that's why we decided to rise -- to raise the guidance in fees. We think we're going to be in the double -- in the low double-digit range versus the high single-digit range. So we do not expect major changes in trends so very positive trends in all these items in fees. And this is probably linked to your first question because we are -- keep transforming our deposits into value-added type products, and this cross-selling is quite valuable for us. You mentioned the first question regarding the cost of deposits reducing by 1 basis point. Indeed, we think that we've reached the trough. Indeed, we think that the cost of deposit will be in the coming quarters, a little bit higher, although betas will continue to go down. And as you know, marginal beta on the whatever increase in CB rates in the future, it will be transforming no more than 10%, 20% impact in terms of beta. So we believe that the cost of deposit is going to be a little bit higher, but basically under control and towards beta much lower. We do expect in Ireland, we are growing -- we have already started. We are growing. We will -- the level of growth will be accelerating across the coming months. We are as you know, building the brand, investing more and more in marketing, and this will take a little bit of time, but the speed is -- I mean we're happy with it. Regarding the volumes and how are we managing the volume. So we do -- as I mentioned before, we do track the liquidity ratio, the deposit to loan and the low to deposit just to make sure that we stay at the levels where we want to stay. So we closed at around 103% deposit to loan or 97% loan to deposit. This is a range when we want to be close to 100%. And for the time being, this is not a restriction for growth. I must remind that the macro environment is positive. So there's still more and more deposits in the industry. So that means that there is, of course, a different commercial strategies in the different banks, but the overall perspective is that the betas will continue to go down.

Our next question comes from Maks Mishyn from JB Capital.

Two from me, please. The first one is on the loan market. On the corporate loan segment, Bank of Spain, has suggested that volumes have been quite subdued in April and May. And I was wondering if you could give us some color on what kind of outlook do you foresee for the corporate segment in the second half? And any comments on the pipeline and type of demand you see would be super helpful. And then the second question would be on the AUM growth. Could you please share with us how much of the growth came from net inflows in the quarter?

Yes, we take that question. Well, first, about AUMs. It is around 45% is net inflows and the rest is market effect. With respect to the Corporate Loan segment, we are seeing quite strong growth, particularly this quarter in Spain, also in Portugal, this has been particularly strong in Spain. I would say, obviously, International business is still one of the principal levers for growth, but also trade finance and the public sector where we had a very low market share, and we are starting to be a little bit more active. For the second half of the year, we still see demand. We see no signs of asset quality deterioration. So we expect to grow at the end of the year by mid-single digits. So to be able to maintain the growth base that we have so far.

Our next question comes from Alvero Serrano from Morgan Stanley.

I guess my two questions are a bit of a follow-up. Jacobo, you mentioned on the performance fees. Thanks very much for the slide where you talked about the vintages. But can you give us a bit of detail on the performance fee in the quarter? And when we look at those vintages that you've laid out in the slide, obviously, you've given us by year, can we make assumptions around typical sort of exit route is 5 years and based on on the vintages that on the capital gain or the performance fee you've had in this quarter, can we make extrapolate anything on the potential vintages we might see materialize in outer years? Is there anything -- if you could give us more detail on this EUR 23 million, maybe we can make our assumptions around extrapolating future vintages? Or any color around that would be very helpful. And the other follow-up is on deposit competition. And I know you've touched on it, but I'm just curious to understand going forward, obviously, your digital deposit campaign has been pretty noisy over the last few quarters when it comes to sort of in these calls, we've discussed it at length. Going forward, now that you have Ireland sort of launch stage. Do you think you're going to need to raise deposits through your digital sort of capabilities in Spain as you had before? Or that's going to play an increasingly lower role, I'm thinking obviously that you're going to have to sort of grow deposits more than you've had this quarter -- in future quarters? Is that going to come from Ireland, Spain, less digital that's a bit of color on that?

I'll take the the first question. Listen, it is a bit difficult. But I will tell you that it has to do with the type of vehicles. There are vehicles that -- the shortest life vehicle is like 7 years, but they are more into the 10 years. So it depends on the type of assets. For instance, this comes from renewable energy. The vehicle was called Elia, I think you have all this information probably in the website in Bankinter Investment website. So you have all vehicles that are live, what the vintages are and what is -- what are the assets underneath. We have a very good track record of management. But obviously, you have to take into account the assets, how much they have or how they have performed in the market, how well can we have done it better than the market and then the average life of the vehicle. Said that, yes, as you can see, the vintages are very diversified and many of them are coming to the end of their lives. I don't know if I've answered that. Again, I don't have a more precise answer, but...

Yes, Alvaro. And the second one related to deposit conditions and digital campaigns, Ireland, et cetera. So I think each country has different commercial strategies. So the Ireland is fully decided to keep increasing the level of deposits because at the end of the day, what we are aiming is to fund all their growth with their own funds. So 100% deposit to loan in whatever they grow. So if they grow EUR 1 billion per year, the target is that they are able to reach the same level of funds in the country. But independent from the commercial strategy that we have in Spain. Because in Spain, we do have these digital campaigns, we do salary accounts. We do different things. But from a commercial perspective in terms of bringing new clients on board and from a perspective of bringing new assets under management volumes that generate fees. So, as we always say, we do combine the vision of NII and fees altogether because we don't mind to be -- to do a commercial campaign to bring new volumes to the bank and then transform them in something that will deliver stable fees in the coming years. So I don't think that -- I mean we see the budget condition from a global perspective. But in each country, they need to deliver their own commercial strategy in order to make sure that they can achieve their own self-funding of their business. And in parallel, we need the commercial activity that provides new clients that brings new clients to the bank that will generate more transactional fees or assets under management fees.

Our next question comes from Carlos Peixoto from CaixaBank BPI.

The first question is actually still on deposits. And apologies if I missed anything since this was a very debated them. But basically, what would be your expectation for the visit growth for the full year? Do you see a pace of growth catching up to loan growth at some point? Then the second question would actually be on other provisions. This quarter, it increased a little bit versus the previous quarter and even on a year-on-year basis. Just wondering what drove that? And above all, what should we expect in this line going forward? Should this be the benchmark for upcoming quarters?

Thank you, Carlos. The expectation for growth in deposits, again, it's linked to the deposit to loan ratio or loan to deposit. So we are aiming to stay where we are, around [ 103, 102 ] deposit to loan or [ 97, 98 ] loan to deposit. So it doesn't mean that we are aiming to grow exactly the same proportion than the level of lending of loans. So as far as we keep similar levels of ratio, we are fine. And in terms of the other provisions, basically, there's more related to seasonality, much more than any other thing. So no major changes as we say at the beginning we are around 7, 8 basis points in terms of this cost, cost of other provisions, and we don't expect any changes on that front.

Our next question comes from Pablo de la Torre, from RBC.