Good morning, everyone, and welcome to Bankinter First Half twenty eighteen Results Presentation. As usual, our CFO, Gloria Hernandez, will guide you through the main highlights of the results today.
Thank you, David, and good morning, and welcome to our Javier results presentation for 2018. The financial information on this semester was posted on the website of the CNMB a few minutes ago prior to the market opening. All related documents can also be found at this time on the Bancinta corporate website. Here is a summary of the main indicators from the last 6 months compared with last year. Our loan book growth intensified in the last quarter despite the constantly shrinking domestic market.
Our gross operating income continued to grow at a 30 pace, even though the Q2, as you know, bore SRF contribution expenses. Here, it's important to remember that some lines in last year's P and L were rewritten to standardize the accounting method for extraordinary revenues from for both years, so they would be comparable. Our NPL ratio continued on a downward trend, decreasing by almost 50 basis points in the last 12 months to 3.25 percent. Net profit amounted to €261,000,000 an 8% increase from a year ago. Lastly, our CET1 fully loaded capital ratio stood at 11.55%, in line with our guidance.
And our ROE remained above 13%, which was also an improvement on last year. As usual, we will first look at our performance in the last 6 months and the quarter alone, then review our quality of assets to end with a summary of the half year performance of our various strategic business lines. If we look at our half year income statement line by line, we can see a continuation very positive trends in earnings. Our net interest income grew by almost 7% with respect to the 1st 6 months of 2017, and our net fee income was up by more than 7%. Regarding net interest income, I should point out that Since January this year, most extraordinary revenues from recovered NPLs in Portugal, previously recognized net interest income are now recorded under provisions in accordance with new IFRS 9 rules.
To make possible the comparison, €22,000,000 in half year income from 2017 recorded as NII are now being rewritten under NPL provisions, where they are they also have a significant positive effect as we shall see further on. Therefore, in a comparable basis, as shown in the table, net interest income grew by 7% in the last 6 months and remained steady in the quarter despite higher extraordinary revenues from Portugal in the previous quarter. For this, we can reaffirm our mid to low single digit guidance for the year. As we will see, this is due to the expected increase in lending and our resilient customer margin. Javier fees grew by over 7 percent, in line with our high single digit target for the end of the year and improving on last quarter's fees by 6.3%.
Other operating income grew by 21% with respect to the same period last year, mainly due to the solid performance of our insurance LDA quarter on quarter. However, it fell due to SRF payments made last quarter. Our gains on financial transactions continue to be very low, especially this last quarter contributing only €10,000,000 to earnings, 45% less than in the previous quarter. All in all, our gross operating income amounted to 977 €1,000,000 up 8.5 percent from 2017 and with better quality as the weight from extraordinary revenues decreased. As for our transformation and operating cost, they grew at slightly under 7%, driven by Linea Directa as in the Q1 to boost premium growth.
At this point, we maintain our mid single digit guidance across the group for the end of the year. Despite this growth, our positive revenue performance helped our half year operating profit to grow by more than 10% with respect to 2017. Lastly, loan loss provisions and other contingencies, including losses on sold asset in the last semester amounted to €116,000,000 up 18% from a year ago. This increase reflects our efforts to strengthen coverage for future contingencies, mostly for multi currency loans, which afforded us our excellent operating profit in the period and will continue to a lesser extent in the coming quarters. As we will see later, it is important to note that the cost of risk of our banking operations continue to hit record lows.
Ultimately, our half year net profit at €261,000,000 grew by 8.4% with respect to 2017, and it is well in line with our targets for the year. The graph on the right reveals our net profit over the last five, 6 month period where we can see year on year improvements, with the only exception of the first half of twenty sixteen due to the impact of the bad will from our acquisition in Portugal. Now we'll go to the quarter income statement. If we compare our performance in this quarter with the same quarter last year, we can say overall that the entire top part of account referring to income has performed very well, exceeding even our expectations at the beginning of the year. Our net interest income growing at around 5%, remained very resilient despite the interest rate environment that shows no signs of change.
Our fee income also stayed solid and deterred by increasing market volatility, thanks to our franchise effective business tone. The line of other income and expenses demonstrates the positive performance of our insurer, Linea Directa, even though Our regulatory costs, mainly SRF contribution, have increased by more than 26%. In this same line, financial fees from new mortgages and short term corporate lending are also recorded, both showing a good tone. With all this, we got a gross operating income that grew by 8% with respect to the same quarter last year, strictly on the back of our recurrent business since our gains on financial transactions continue to contribute very little. The bottom part of the account requires a more in-depth explanation.
On the one hand, even though we can't see it in the total, We have reclassified €30,000,000 from NPL provisions to legal provisions during the quarter. This regular did not affect the group's earnings or net worth, but was done to properly identify the risk associated with certain loans subject to legal proceedings, particularly multicurrency loans. On the other hand, capitalizing on our positive revenue performance over the last 6 months, we enhanced our provision buffer to handle this type of legal contingencies, for which this line in the account shows such a high increase. With regard to the cost of risk, even if we adjust it for the reclassified provisions, it remains very contained, as we will see in further detail under the asset quality section. Lastly, our pretax profit and net profit underper outperformed related figures from the same quarter the year before.
The group's total the group's loan book continued to grow by €2,600,000,000 or 5 percent year on year. In Spain, where the sector had shrunk by 2.5% as of May 2018, we added €2,000,000,000 in new loans. In Portugal, the loan book increased by 12%, that is over €600,000,000 Last quarter, the group performed particularly well in new lending, growing almost EUR 1,700,000,000 mostly in corporate lending and consumer finance. It is worth mentioning that our mortgages book increased in the last 6 months, unlike other listed banks in Spain. As for our retail deposits, they have grown by somewhat more than €3,300,000,000 or 7% in 12 months and in both geographies, clearly outperforming the sector in Spain.
Now if we look closely at our improving Net interest income, despite the unfavorable interest rate environment, it grew in Spain for another quarter, while Portugal contributed €3,000,000 less due to fewer extraordinary revenues from recovered NPLs. Further on, We will analyze our recurrent net interest income figures in Portugal, which continued on a positive trend. Our positive net interest income performance was also due to the increase in our customer margin. The yield on loans remained steady in the quarter, mostly due to our stronger asset mix, and our cost of funds dropped by as much as 6 basis points. With regard to our ALCO portfolio, its size and composition did not change significantly with respect to last March, maintaining its very stable contribution to the group's net interest income.
Unrealized gains remained over €400,000,000 with a small impact due to the increase in the market volatility during the period. Nevertheless, an important portion is in the amortized cost portfolio, which has no impact on the capital ratio. The other portion related to the available for sale portfolio has reduced 19 basis points or CET1 ratio in the period, but more than offset by the 52 basis points of the IFRS 9 first implementation. The other line of income that has performed very well is our fee income, up by over 7% year on year and representing 23% of our gross operating income. The largest contributor is still asset management, driven by our strong performance in private and personal banking.
Payment and collections fees were also noteworthy in terms of their growth and importance to our earnings, especially with regard to corporate banking transactions. Lastly, our insurance sales fees grew by over 7%. The fees that were more sensitive to market volatility were equity and FX fees, with a slight reduction this quarter. If we trust that market volatility will subside in the second half of the year, We can maintain our mid- to high single digit guidance on fees for all 2018. In other income and operating expenses, we should note the contribution from LDAs insurance margin up by almost 14%, driven by the sustained growth in premiums.
This quarter, Goya World also felt the increasingly negative impact of regulatory charges, particularly SRF costs. But however, they are amply offset by other income related to financing fees or new mortgages and corporate loans, which have performed very well in Spain and Portugal and by the fewer expenses paid to consumer finance intermediaries in business that we have discontinued such ASKAR financing. As a result, this line increased by 21% in the last 6 months. In the graph of the right, we have the contribution of our revenue streams from to gross operating income. 50 6% of our total income was net interest income.
Fees and commissions contributed 23%, with 18% from other revenues, including Linea Directa and only 3% from gains on financial transactions. This indicates good diversification to counter the persisting extremely low interest rate environment. In relation to transformation or operating costs, we separated those concerning banking operations from those relating to Linea Directa as their performance is very dissimilar. Whilst Linea Directa's costs grew by double digits as in the previous quarter. Banking cost grew more restrainedly and fell by 1,000,000 €8 with respect to the previous quarter.
Moderation in the growth of cost, along with a good performance of revenues allowed our cost to income to improve by 100 basis points in the semester. Regarding our cost of RICs, As mentioned earlier, our €30,000,000 in provisions reclassified from insolvency to legal provisions had a positive impact on it. Minus this effect, it could have been very similar to last quarter's figure. Our cost of risk as of June totaled €33,000,000 62% less than a year ago. This has allowed us to be conservative when recognizing provisions for future legal contingencies.
Group's cost of risk for the last 12 months stands at 15 basis points. Lastly, Our ROE grew year on year, both in our banking business as well as in our extraordinary profitable insurance business, with ROEs consistently above 35%. Mackinta continues to deliver 1 of the best ROEs among its peers and clearly above its cost of equity. Let's now go over our management of credit risk, liquidity risk and capital. Our non performing loans continue to fall quarter on quarter in both Spain and Portugal.
In Spain, our NPL ratio is below 3% for the first time since 2010. And in Portugal, it's already at 6.5% from 7.8% a year ago. NPAs provisions amounted to €1,170,000,000 up 7.7% from December due in part to the implementation of IFRS 9 in the Q1. Our provision coverage continued to be at levels similar to other peers. And for NPL coverage, including generic provisions, levels are appropriate.
As for foreclosed assets, coverage is well above the average on Sol assets, as we will see in a minute. Beforehand, let's review our foreclosed asset portfolio, which has ranked by 22% since June 2017. We still sell these assets throughout Our commercial network. Total sales in the last 12 months amounted to €200,000,000 40 percent of the total stock. The average discount rate is around 36%, well below our provision coverage rate with a minimal impact on earnings.
Our fully loaded capital ratio was 11.55 percent at the end of June, 9 basis points more than in December 2017. The decrease since March 2018 stems from the great increase in the loan book during the quarter and the drop in unrealized gains in our available for sale portfolio that have reduced the 52 basis points contribution after IFRS 9 implementation to a net positive of 33 basis points. Compared with December, these negative impacts were offset by our organic capital generation and the still positive impact of IFRS 9 implementation. Both our total capital ratio and our leverage ratio remained fairly stable with respect to previous quarters. Balance sheet increases in both loans and deposits ultimately lead to a better funding gap that is the difference between our customer loans and deposits and is now back to nearly EUR 4,000,000,000 in total.
In Portugal, it is also decreasing. Thus, our loan to deposit ratio strengthened once again, reaching the highest level in recent years. The maturity structure of our wholesale funding has not changed with amounts that can be easily assumed over the next 2 years. We have no future issues planned at the moment since our liquidity buffer is still very high and improving. Any future issues would be in modest amounts and always in line with any MREL requirements we are given.
Now we'll look at our most significant customer business indicators in the last 6 months. We start with the contribution of each unit to gross operating income. Corporate Banking and Commercial Banking provided jointly 60% of recurring income in almost equal measure. Our insurance business contributed a very stable 21%, followed by our consumer lending business with 10% And finally, Bancinte Portival still at 7%. Lastly, our non customer business, trading, ALCO and others contributed only 5% to our total income.
As our largest contributor to gross operating income, corporate banking remains on the same growth trend from 2010. Its loan book now amounts to €24,000,000,000 up by more than 7% year on year in both Portugal and Spain. Furthermore, in Spain, the sector continues to shrink, having done so at a rate of 6.3% from May 2017 to May 2018. This is surely worsened by certain competitors' sales of NPL portfolios. Over half of our corporate loan book consists of loans to large sized enterprises, which account for 36% of year on year growth, whilst the rest is made up of loans to medium sized enterprises with 43% of the total increase and finally, small and medium enterprises with the remaining 21% of annual growth.
Our improved asset mix lets us conserve our average asset yields despite increasing competition in all segments. Our corporate relationship business saw significant growth in international trade finance, which now represents over 26% of the segment's income. A similar trend is taking place in our collateral business with corporate customers where the fees and net interest income from related service increased at double digits with respect to the first half of 2017. Corporate Banking continues to develop products and services that help forge high value added and long lasting relationships. In our Private Banking, managed wealth grew by 9% year on year, including the negative market effect.
The net new money attained since December represented a 28% increase from a year ago. More significantly, we are collecting value added fee income already on 43% of all our managed assets. In personal banking, customer assets grew by 8% year on year with €900,000,000 in net new money during the first half of this year. Our delegated and advised assets grew at higher rates, 43%, and our mutual funds managed grew by 13%. In commercial banking, the first half of the year went very well in terms of our 2 main products.
On the one hand, our payroll accounts, up 21% and on the other, new mortgages up 17% from the same quarter last year, outperforming the market and holding our market share in new mortgages to 5.8 percent in April this year. Balance sheet funds saw double digit growth in investment funds and almost double digit in pension funds year on year. We still have more third party funds than own funds sold to customers. Our mix of funds continues to increase in more value added funds, which improves our average fee intake. Now we will review half year figures from our subsidiary, Linea Directa, which has been performing very well year to date, reaching a market share in motor insurance of 7.5% and 2.9% in home insurance.
New policies and premiums continued to increase at the same pace as in the first quarter, especially in home insurance due to cross selling. Nonetheless, motor insurance premium grew more than double the market growth rate in Spain. Linea Directa's combined ratio continues to outperform that of prominent insurers in the market, standing well below 90%. Its claim ratio, slightly worsened in the quarter, although it continues to outperform the sector average by 700 basis points. And finally, East's expense ratio went unchanged.
Furthermore, so far, the sale of its First 9,000 health insurance policies under the Bebaf brand name did not have a negative impact on its combined ratio. Lastly, if we look at half year results, its net profit increased by 15%, thanks to growth in premiums with our technical insurance result growing at a solid 13% despite rising operating cost. This helps us to maintain both LDA's high solvency ratio of 220% and high ROE of 38%. In consumer finance, lending continued to grow as well as our customer portfolio, which exceeded 1,000,000 200,000, while still maintaining very acceptable credit quality ratios. NPL's coverage reached 113%.
Despite the downward pressure on the risk adjusted return due to increasing competition, it is important to remember that between 35% to 40% of our business is conducted with Bankinter customers in the form of credit cards and personal loans, which much better risk quality and somewhat lower spreads. The consumer loan portfolio for card purchases and others does not exceed 5%, and personal loans to non bank inter customers make up only 10% of new loans. Furthermore, Portugal's consumer business makes up already 7% of its total portfolio. Lastly, I'll go over figures from Bancinta Portugal. Balance sheet growth is in line with our expectations.
Portugal's loan book increased by a very remarkable 12% with a high concentration in new loans to corporates growing by 45%. In Commercial Banking, both new mortgages and consumer lending grew by 5%. Our balance sheet funds, mostly Unit Linked and mutual funds grew at a sound 16%. As for its earnings, considerable growth in all income lines and better cost control can be appreciated. Recover NPLs freed up credit provisions, which increased with respect to last year.
As a result, Portugal earned a pretax profit of €31,000,000 66% more than last year. To analyze recurrent business growth in Portugal, Here, we have a quarterly breakdown of its performance in recurring net interest income and fee income, which are up by more than 25 percent with respect to the same quarter last year. On the other hand, its cost show more contained growth at a year on year rate of 5%. Split tax profit, more volatile due to NPL recoveries, will likely amply surpass last year's figures despite the fewer extraordinary recoveries. And finally, in this last slide, you have a brief recap of what we have seen already, highlighting our half year profit or high ROE and capital ratio, our increased recurring income from business operations and all that with a very low NPL ratio.
Thank you very much. And I can now answer any questions you have.
Thank you, Gloria. Let's start with the Q and The first question we have received is on volume growth. Whether you can elaborate on the pattern we have seen in lending growth in the quarter and what shall we expect for the rest of this year?
Okay. Thank you, David. Well, as you have seen in the presentation, the balance sheet Has continued to grow. The annual rate has been a remarkable 7%. Concerning the loan book, The growth was 5% with respect to the same month last year, June last year in an industry that continued to shrink by 2.5%.
It's a very remarkable performance. The growth is very well diversified, but is mostly in corporate, consumer lending and in Spain as well as in Portugal. Starting by the consumer lending growth, as you have seen In the total banking activity, the growth was 7% in the period, €1,600,000,000 But looking at the different geographies in Spain, The growth was 3% in an industry going down by 6.3%, So very, very well. And EUR 1,000,000,000 considering in Portugal, The growth was standing 45% year on year. And that means a growth of EUR 350,000,000 more or less since December.
So again, very good performance. Consumer Finance continue to increase the loan book, 6% quarterly, but 42% year on year. This figure is in 35%, more or less, in banc inter customers. So we are not worried at all on the high on this high rate because it's a very sound growth. Mortgages continue to grow.
The new production the book has maintained stable, but the new production has been EUR 715,000,000 in the quarter over the same period last year, so that means 17% of growth. So it's also again a very good performance. So [SPEAKER ANASTASIA ALBERTO PEREIRA DE OLIVEIRA:] When looking at the diversification, no big or no concentration in specific names is very granular, this kind of growth, and it has to do clearly, with some positive seasonality that we have always in the at the end of the second quarter. I don't know if you want me to continue on other sides of the balance sheet or This is Inot?
Well, the questions were mainly related with the performance of the loan book. Yes. Okay, let's move now to the P and L items. For example, let's start with NII. Again, questions on the guidance for the remaining of the year and the behavior of the client margins
Okay. First of all, concerning the guidance, taking into account the resilience of our recurring domestic business and the robustness of our Portuguese franchise, we, at this point, to our guidance of low to mid single digit for the year for the total banking group. In terms of customer margin, it maintains very stable, although in the quarter, has reduced by 1 basis point or something like that. When looking at the year, the performance has been positive, has improved by 4 basis points. So I think that the customer margin will stay more or less stable because the spread in the loans maintain certain stability, more in corporate loans than in mortgages, where the competition is a little bit higher or more intense coming from some competitors than In the rest of sorry, in the retail cost, we will So that means that the customer margin will stay more or less stable in the future.
Okay. Thank you. Also some questions On the guidance for fee income?
Okay. The fee income has continued to grow very well Despite the high volatility in the market, we have been able to offset the Volatility or the negative impact of the volatility in those lines of this item more related to the market with more commercial activity in business with our corporate customers and with international trade finance. And that's why we, at this point, whenever the markets improve their current tone or at least recoup some stability, we are able to maintain our guidance of mid to high single digits growth for the whole year.
Thank you. Can you probably remind us of the what's our expect from cost evolution in the coming quarters?
Okay. As you have seen in the presentation, we The growth in cost is showing a very asymmetrical performance. On the one hand, we have the banking business costs growing at only 3%, and this growth is related to the growing commercial activity in bancinterconsumersfinance, we have seen this before. And in our group's digital projects, we are involved in a lot of digital projects that need to invest in in some developments, although some of these expenses will Are not in the current P and L because are activated. Part of them are in the cost line.
This is the banking business. On the other hand, we have the insurance business, where cost grew at 13%, which is really a high rate, but 2 things. First is this rate is 2 percentage point less than the previous quarter, So the situation is improving. And second point, this growth is related with 2 different questions or 2 different points. First is the fact that we have introduced a new business line and this means that you have to spend how to invest some money at the beginning before starting to get the revenues of this new business line.
And second, the fact that we are being very good in terms of selling new policies. And to do that, you have to invest in marketing, customer acquisition cost and in sales force. And that's the reason why The costs in Linea Directa are growing by this 2 digits rate. But looking at the rest of the year, what we are focused is in the efficiency, the cost to income ratio. And you have seen in the in one slide that the Cost to income continue to be best in place best in class, sorry, 46%.
What that means, 2 40 basis points less than a year ago, particularly due to the good behavior of Portugal cost to income. And finally, looking at the final or the whole year, we maintain our mid single digit range for as a guidance.
Okay. Clear. Still on the P and L, we are getting questions on the trends that we have in the cost of risk and the provisions lines, whether you can explain again on that part.
Well, first of all, Cost of risk continue to improve quarter on quarter. Now looking at our the last 12 months, the cost of risk is 15 basis points, so well below the average of the banking sector in Spain. I understand that it's difficult To understand the figures of this quarter because of this reclassification, I remember the numbers. In the quarter, we have reclassified EUR 30,000,000 from impairments to other provisions. This has to do with the fact that some loans, multi currency loans, were previously provision as in the line of impairments.
But as soon as the customer or the client or the borrower has presented a shoe against Bancinter, we have to reclassify this provision from the line of impairments to the line of legal provisions because it becomes a legal question, a legal issue. So even excluding this reclassification, the cost of risk in the quarter have been 21 basis points. So we're in line with previous quarters, a little bit better than previous quarters and continuing the trend of gradual reduction in cost of risk. So looking At long term or medium and long term, we would say that our Average cost of risk is more or less or around 30 basis points. I don't know if you want something else or
No, just further questions on what's your view on the exposure to litigation risk of Bankinter.
Okay. Well, as you know, litigation risk has become a source of cost for the banking industry in general and all Spanish banks are involved in this issue. [SPEAKER ANASTASIA ALTOZ DE TEJADA:] We are not an exception, although we are exposed to a much lesser extent given our customer profile. But in any case, our claims are mainly related to Lehman bonds, to interest rate hedges and more recently to FX denominated mortgages. Recent Spanish Supreme Court rulings made it clear that banks are not always liable for products sold in the past.
And regarding those products that concern us, core rulings are very much based on case by case basis. And particularly on how transparent the selling process to customers was. Anyway, Although the Supreme Court ruling concerning multi currency loans was not related to Vanquinter and the specificities of the loan affected by the ruling have nothing to do with the loans that we sold. It's certain that some courts in first instance are being more inclined to rule against the banks in these products, worsening our success rate. We continue to defend our position, because we consider that in most cases, we have sold well following the profile of our clients.
But at the same time, we are conscious of this contingency, and that's the reason that why we have increased our provisions to strengthen our coverage for future contingencies, capitalizing on the good performance of our operating profit since December. As a result of that, total losses are now covered as of today. This trend will continue to a lesser extent in the coming quarters. Finally, I have to say that all this process is logically in line with our external auditors and the regulators.
Okay. Thank you. Now let's move to capital. Can you comment or elaborate a little bit on the performance of our capital in the quarter? We have Some negative impacts from growth and mark to market of the bond portfolio.
Okay. Well, in the presentation, we have shown the evolution from December, the 6 month evolution, because the quarter evolution shows a lot of volatility as we anticipated to you last quarter. Why? Because from the 1st January, we decide to reclassify our loan portfolio and more or less 2 thirds of of it is now in the available for sale, subject to market volatility because we have to do the mark to market every quarter. In March, the unrealized gains were at its highest level in history probably.
And that's the reason why the ratio in March went up to 12%, a level which we anticipated it was to be temporary or transitory. Now at this quarter, we have come back to the 11.5%, 11.6%, which is more in line with our guidance and with the underlying trends. In the quarter, what has happened, the business has continued to increase our organic capital creation and at the same time, the growth in raised weighted assets have subtracted some basis points, particularly well, not particularly, in Spain as well as in Portugal. And finally, the portfolio, the ALCO portfolio has subtracted around 19 basis points from I think it's from January. But as the increase in the Capital ratio because of the unrealized capital gains was 53 basis points in January.
This 19 basis points subtracted from this amount means that the Capital the ALCO portfolio continued to imply 33 basis points percent in our ratio. Apart from this, I have to say that 1 third of the unrealized capital gains are now sit on the amortized cost portfolio. And looking at the amounts that we have there in terms of unrealized capital gains, the impact in capital ratio not register, but they are unrealized gains. Any case, the impact would be or would have been 40 basis points. So this is something that is in our caution, Not recognizing the capital ratio yet, but it's in our balance sheet.
One final question on capital. What's the way we expect the guidance to be for CET1 fully loaded ratio?
Well, our guidance continues to be the same between 11% to 11.5%.
Okay. Thank you. A couple of questions on M and A. We have seen some recent news on about our interest for a possible deal. Can you comment on that,
Well, as you can imagine, I have to be very prudent because of market regulations. But what I can say is that Bankinter has always been scanning the market for new opportunities. This is not News for you. In this sense, as we announced with Anadoc Last week, we are analyzing some of the businesses of this entity, Evo, But yet, we have not taken any decision on it. That's all I can say.
In any case, having said that, I remember you that we have always said regarding M and A that Whatever we do, it must fit within our strategy, Our corporate culture are our DNA, first point. And second, it must be affordable given our size without potentially changing the characteristics of Vanquinte that have always differentiated us from our peers.
Okay. And last question, a few analysts are asking on this issue of stock. So, Max, whether you have any comments there?
Well, all I can say is that the well, the public pensions problem is a general problem in society, and we don't really understand why a done why a single sector must solve it, especially when it is already been the sector is being penalized by a number of special charges. I remind you that we're paying a 30% in the corporate income tax rate. So we are already paying an extra 5% on every yearly tax account with respect to other companies in Spain, and that's a lot of money. In the case of Banquinta, Banquinta has paid €45,000,000 since 2015 by as a result of this charge. 2nd, the banking sector must contribute to the SRF and this year, every year to avoid future banking crisis.
And Banquinta's contribution to both funds will amount to around €65,000,000 this year. So it's another charge, a special charge for the sector. And finally, in my view, there is no point in speculating about the impact of a tax that has not yet been and may never be defined.
Thank you so much, Gloria. Thank you, everyone, for joining us. That was all from us. The Investor Relations team is now available to take any further