Jaime Botín and his family, through their Cartival assets, accumulate latent losses of 120 million since the spin-off and listing of Línea Directa . The placement in the market allows this controlling shareholder of the insurer and Bankinter greater liquidity, since both groups are listed, but since then the strategy has been negative for their interests, although the capital losses have been reduced over time.
Botín, uncle of the president of Santander, controls 23.19% of Bankinter and 19.15% of Línea Directa. Some shares that currently have a value of just over 1,000 million and 363 million, respectively. At the end of April, when the insurer’s stock market debut took place , these amounts were at 1,229 million and 274 million.
In this way, the bank’s losses do not offset the gains of the former subsidiary of the financial group. Since the spin-off of Línea Directa, Bankinter has accumulated an 18% drop in the price . Of course, as of mid-July it has started to go back, especially after the presentation of the half-yearly results. In contrast, the insurer adds a 32% rise, but since June the rise has slowed.
For the bank, the contribution from Línea Directa was fundamental, since it contributed a fifth of the profits. The entity expects this hole to be fully covered in 2023, according to its estimates thanks to the boost from the traditional banking business.
At first, analysts did not believe that it would be able to achieve it in such a short time, but for a few months there has been more optimism and there are different houses of experts who believe that the objective can be achieved .
Bankinter’s plan is to return to precovid profits within three years , for which it intends to boost mortgage, consumer, corporate and asset management activity. Therefore, he hopes to obtain a net result by then of 553 million.
The entity headed by María Dolores Dancausa has explained that the recovery of the account will also come from a substantial drop in provisions against losses after the effort made in 2020.
Like Jaime Botín, the rest of the bank’s shareholders and those who have remained on Línea Directa are suffering losses of the same proportion. Among the significant partners is Fernando Masaveu , who controls 5.3% of Bankinter and 4.3% of Línea Directa. The combined value of both shares has fallen by 27 million, to 315 million.
The situation is different for Bankinter, which maintains 17.4% of the insurer as financial participation. The IPO has brought capital gains of almost 1,000 million and the value of the share has experienced an increase to date.
The entity placed Línea Directa on the market in order to remunerate its shareholders in an extraordinary way , an operation that was delayed by the imposition of the ECB to the sector not to distribute dividends after the outbreak of the coronavirus. The ECB began to raise its hand and removed restrictions earlier this year and in July decided to remove the veto entirely from October.
Bankinter’s intention is to return to the traditional policy of a pay out (part of the profit that goes to shareholder remuneration) of between 40 and 50%.
Línea Directa also has an ambitious dividend strategy, in which it even aims to reach 90% of the profits. Since its IPO, it has already distributed the first payment charged to the 2021 accounts . This has amounted to a total of 26.6 million. Therefore, Jaime Botín’s assets have received 5 million for his participation.