BANKINTER TO BUY BACK CAPITAL
BANKINTER TO BUY BACK CAPITAL MADRID, Spain, Oct. 15 /PRNewswire/ -- Bankinter, S.A.
(NASDAQ: BKISY) announced today that it is calling a special shareholders meeting to seek the approval of the bank's shareholders to reduce the bank's paid-in capital by canceling and retiring shares already acquired by the bank on the open market. The shareholders meeting will be held in Madrid on Nov. 11.
In making the announcement, the bank noted that like other Spanish banks, Bankinter's shares had recently fallen to well below their book value, and are currently selling at approximately 30 percent of book value, with a PE ratio of 4.7 times 1991 earnings. The bank said that it considered this to represent an excellent opportunity for the bank to buy back its shares and, if shareholders approve, to cancel these shares. The proposed transaction would leave the total number of outstanding shares at 17,954,391, not significantly altering the solid solvency ratios of the bank. The bank's capital ratio as measured by B.I.S. standards would remain at approximately 16.4 percent, with Tier I, or core capital, at over 13 percent. The bank noted that the transaction would favorably affect earnings per share, pointing out that if it had been carried out last year, the bank's earnings per share would have increased from Ptas 996 to Ptas 1,048. The bank added that the transaction would also enable it to continue increasing the dividend paid on each Bankinter share, and said that if the transaction is approved, the book value of each Bankinter share would increase from Ptas 6,356 to approximately Ptas 6,690. The bank stated that it has under way numerous projects to enhance future earnings growth, but that these are not capital intensive. Bankinter is one of Spain's leading commercial banks. Based on its return on assets at the end of fiscal 1991, it was the second most profitable of the major Spanish banks. The bank has a sponsored American Depositary Receipt (ADR) facility and its ADRs trade in the over-the- counter market in the United States. -0- 10/15/92 /CONTACT: Jaime Echegoyen, 011-341-339-7600, or Jerome Wattel of Wattel/Della Corte & Arkin, 212-599-2369, both for Bankinter/ (BKISY) CO: Bankinter S.A. ST: IN: FIN SU:
CK -- NY066 -- 0427 10/15/92 12:29 EDT
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|Date:||Oct 15, 1992|
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