The Crèdit Andorrà Group continued to lead Andorra’s financial sector in 2013 with a total business volume of 15,472 million euros, 7.36% more than in 2012, and customer assets under management totalling 12,418 million euros, up by 9.82%. The Bank has also maintained its loan investments, totalling 3,053 million.
Such statistics translate into solid figures with a solvency ratio of 19.14%, almost double the legally established minimum of 10% and higher than 2012’s ratio of 17.80%, and a liquidity ratio of 59.89% when the legal minimum is 40%, demonstrating the strength of Crèdit Andorrà.
Business operations have been positive, with operating income totalling 227.92 million euros, 16.50% more than in 2012. The Bank’s international expansion project has continued but with responsible management in containing spending, as shown by our excellent efficiency ratio of 38.59%: management which has ultimately resulted in a net profit from operations of 114.69 million euros, up by 53.72%.
The Crèdit Andorrà Group has recorded a consolidated net profit of 71.24 million euros, 0.53% higher than in 2012. On the whole, Crèdit Andorrà is satisfied with the results achieved in 2013, taking into account the complexity of the economic environment and the effort being made to extend its presence to other markets.
The Group’s equity also ended the year with notable growth, reaching 575 million compared with 546 million in 2012, maintaining the level of capitalisation and ensuring the Bank’s sustained growth in the future.
At year-end 2013, 696 professionals with 25 different nationalities and spread among 10 countries formed part of the Crèdit Andorrà Group, 412 of them in Andorra.
The Chief Executive Officer of Crèdit Andorrà, Josep Peralba, points out that “the Group ended 2013 by achieving the targets established in our Strategic Plan, representing the consolidation of our business model in Andorra, enhancing our presence in America and structuring and developing our business in the European market”. Peralba adds that “Our expansion plan is progressing, taking the approach of a sustained project for the future and ensuring we remain competitive in a global market. Having four banking licenses, in Andorra, Spain, Luxembourg and Panama, differentiates us in our strategy to become the Bank of Andorra in the world but without losing the essence of what has brought us to be the leading financial group in Andorra”.
International expansion: reinforcing financial operations in Switzerland
In 2013 the Crèdit Andorrà Group consolidated its Wealth Management project, reinforcing its operations in Switzerland and asset management through the acquisition of 9.9% of Banque Genevoise de Gestion, a private banking institution founded in 1988 that specialises in the global management of institutional and high net wealth clients. A traditional finance market characterised by its stability and long experience in private banking and asset management, Switzerland is a strategic location for the Crèdit Andorrà Group, crucial in consolidating its global Wealth Management project.
The Insurance Group has also been given a definitive boost by the start-up in Spain of CA Life Insurance Experts a life assurance broker with offices in Barcelona and Madrid, and CA Vincles (Chile), providing actuarial and insurance services.
Over the last few years the Bank has gradually diversified the location its private banking and asset management business, operating in key financial markets in both Europe and America. It is currently present in ten countries: Andorra, Spain, Luxembourg, Switzerland, USA (Miami), Mexico, Panama, Paraguay and Peru and has four international banking sites (in Andorra, Spain, Luxembourg and Panama).
Ratings and awards
The different awards received in 2013 reflect Crèdit Andorrà’s prudent, conservative management, its leading position in the Andorran market, the increase in its international private banking business, the positive trend in the Bank’s margins and its ongoing commitment to maintain optimum quality standards.
Fitch Ratings maintained its credit ratings with a long-term rating “A-” and an “F2” short-term rating.
The Financial Times Group, through its publications The Banker and Professional Wealth Management, gave Crèdit Andorrà its award for the best Andorran bank in private banking in 2013. This distinction recognises the Bank’s private banking services and provides a boost for its internationalisation process. Crèdit Andorrà is the first bank in Andorra to receive this award. For its part, the Global Banking & Finance Review also chose Crèdit Andorrà as Andorra’s best private bank in 2013.
The Bank has also been ranked 778th in the world and number 1 among Andorran banks in the Top 1000 drawn up by The Banker (July 2013). This ranking classifies banks according to their strength and capitalisation.
Commitment to society
The Crèdit Andorrà Group invested a total of 2 million euros, 2.79% of its profits, to initiatives for society (education, social well-being, culture, economy and the environment).
By area of action, 32% was invested in educational, social and cultural programmes carried out by the Fundació Crèdit Andorrà; 66.73% in initiatives to boost the economy, institutions and sports, and 1.27% in environmental initiatives.
The Group has paid particular attention to the key driving forces for Andorra’s economy and businesses through the Crèdit Andorrà Chair in Markets, Organisations and Humanities at IESE and also in collaboration with other institutions in the Principality. The Group’s characteristic desire to serve can be seen most clearly in the Fundació Crèdit Andorrà, which has spent the last 25 years working to give society the necessary means for its future development.
Both the Bank and the Foundation have devoted the material and human resources required to consolidate a wide range of collaborations and initiatives aimed at social, economic, cultural and educational growth and progress for the country.
In education, scholarships were once again given to young people for postgraduate studies, as well as encouraging further education through its agreement with the University of Andorra. In the area of society, senior citizens, families in a precarious financial situation, the disabled and the promotion of health have all received attention. With regard to culture, the Andorran National Classical Orchestra, the Andorran National Stage Foundation, the Narciso Yepes Ordino and Fundació Crèdit Andorrà International Festival, the International Organ Cycle and the exhibition on Ancient Egypt and Coptic fabrics of Montserrat were all promoted, as well as publishing the book Ràdio Andorra. In the area of sports, support was provided for skiing by sponsoring the Alpine Ski European Cup, the Andorran Ski Federation, grassroots clubs and the Borrufa Trophy, as well as through our strategic holdings in Ensisa and Nevasa and promoting the Crèdit Andorra Everest Expedition, taking Andorra to the top of the world for the very first time. Lastly, in the economic field, Andorra’s business fabric was supported through several acts such as the Andorra la Vella Fair and the Fair of the Association of Vehicle Importers of Andorra, the Business Meeting in the Pyrenees, EFA (Andorra Family Business Association) and talks given by speakers of renown. All this, as well as many other activities.