MADRID (Reuters) - Bankinter said on Friday it was applying for a full Irish banking licence and entering the deposit market as part of the Spanish bank's strategy to diversify under CEO Gloria Ortiz.
The move by Spain's fifth-largest bank by market value is seen as a significant boost for competition in Ireland, where retail banking is dominated by three Irish lenders - AIB, Bank of Ireland and Permanent TSB.
Bankinter said it would operate in Ireland under its own brand to offer all kinds of financial products to customers.
Ireland's financial crisis led to the withdrawal of Bank of Scotland (Ireland) and Danske Ireland from the market, while the last two international banks, Ulster Bank and KBC Bank Ireland, decided three years ago to wind down their operations.
Irish Finance Minister Michael McGrath said in a statement he welcomed Bankinter's intention to seek regulatory approval for a full banking licence.
Bankinter, which last week beat market forecasts with a 9% year-on-year rise in the first quarter, began operating in Ireland in May 2019 through Avant Money, a company focused on consumer lending and regulated by the Central Bank of Ireland.
The Spanish bank then incorporated the mortgage business into its strategy in September 2020.
Bankinter's total loans in Ireland rose 43% year-on-year in the first quarter of 2024 to 3.3 billion euros ($3.54 billion), of which 2.4 billion euros were mortgages.
Profit before tax rose 5% in the quarter to 9 million euros compared to same period a year ago, while net interest income, difference between loans minus deposit costs, increased 11% year-on-year to 24 million euros in the January to March period.
($1 = 0.9314 euros)