Total assets under management rise to 10,087 million euros, an increase of 10%
The ordinary margin is 174.46 million
Loan investments total 3,112 million
The solvency ratio reaches 17.39%, above the legally established minimum of 10%
The bank maintains a long-term rating “A–” and a short-term rating “F2”, with a stable outlook
The amount allocated to social action is 1.8 million euros, 2.53% of the net profit
The Crèdit Andorrà Group ended 2011 with a 7.5% increase in its business volume compared with the previous year, achieving the figure of 13,199 million euros. Assets under management also increased, totalling 10,087 million euros, 10% more than in 2010, while the ordinary margin was 174.46 million euros, down 0.7% on 2010.Crèdit Andorrà achieved a net consolidated profit of 70.62 million euros, 9% lower than the previous year’s figure after tax, which totalled 19.64 million euros. This profit was achieved after applying a prudent and conservative policy of provisions for insolvency and within a European economic climate that is clearly slowing down.
Remaining true to its commitment to the country and its customers, Crèdit Andorrà has continued to facilitate access to financing, with loan investments totalling 3,112 million euros.
Of particular note is the significant rationalisation and cost control, which has helped us to maintain an excellent efficiency ratio of 48.56%.
The equity of the Crèdit Andorrà Group, 569 million, provides it with a comfortable and adequate level of solvency to ensure the group’s sustained growth.
This strong position is significantly better than the one required by Andorran legislation and the average for Europe’s banks and the group’s solvency and liquidity ratios reached 17.39% and 51.81%, respectively, above the legally established minimums of 10% and 40%.
During 2011, Crèdit Andorrà worked to grow internationally and guarantee the strength and solidity of the group. It has remained as the leading financial group in Andorra with the largest commercial network in the Principality, totalling 16 branches and 42 automatic branches to ensure our customers get the best possible service.
Globally, the Crèdit Andorrà Group workforce has grown by 92 people, an increase of 17.79% compared with 2010. At the end of 2011, a total of 609 professionals were working for the Grup Crèdit Andorrà. The workforce for the companies located in Andorra has remained stabled at 411 employees.
Key financial operations in the area of internationalisation
The Crèdit Andorrà Group is present on two continents, Europe and America, with differentiated projects offering great added value. The operations carried out in 2011 reinforced the group’s position in the international financial system with a global private banking project. 2011 has been an important year for expansion.
In Europe, the acquisition of Banque de Patrimoines Privés in Luxembourg has allowed the banking and financial business to be channelled through a well-established banking platform, thanks to which we offer investment consultancy and tax planning services, as well as safeguarding and administering investment funds and the group’s two SICAVs.
The subsequent purchase of Banco Alcalá (with its head office in Madrid and a branch in Barcelona) has introduced the group into Spain’s private banking market, where we provide wealth management services to private and institutional customers. These two operations have helped the group to consolidate its presence in the European market.
In the insurance area, the Grup Crèdit Andorrà has continued to expand its ERM Holding (Enterprise Risk Management) by opening another branch in Madrid.
ERM, a full-service risk management company, is currently present in Spain’s two key business centres; in Barcelona, where the holding has its head offices, and in Madrid. Its sales network also has offices in Girona, Tarragona, Palma de Mallorca and Seville.
Regarding our American expansion, in 2011 the group acquired Beta Capital Management LP, based in Miami. Thanks to this operation, Crèdit Andorrà is the first Andorran bank to be given a broker/dealer licence in the United States.
The Crèdit Andorrà Group is currently present in Andorra (with Crèdit Andorrà, the fund investment manager Crèdit Andorrà Asset Management, the life insurance company Crèdit Assegurances, the actuarial consultancy Vincles and the venture capital company Crèdit Iniciatives); in Spain (with Banco Alcalá, fund investment managers Gesalcalá SGIIC and Valira Capital Asset Management SGIIC, the pension fund manager Alcalá de Pensiones and the insurance consultant and broker ERM); in Switzerland (with Private Investment Management, a wealth management firm); in Luxembourg (with Banque de Patrimoines Privés and the collective investment companies Crediinvest Sicav and Investcredit Sicav); in Miami (with the broker/dealer Beta Capital Management LP); in Mexico (with the wealth management firm CA México Asesores Patrimoniales) and in Panama (with Banco Crèdit Andorrà (Panamá) and the securities company Crèdit Andorrà Panamá Securities).
Ratings and recognition
One of the indicators of the stability and strength of the Crèdit Andorrà Group has been the maintenance of our classification by Fitch Ratings. Crèdit Andorrà has a long-term rating “A–” and a short-term rating “F2”, with a stable outlook, a rating that guarantees the stability of future valuations. Maintaining these ratings is particularly significant when we bear in mind the current situation of the international financial system. According to Fitch, these ratings are a “reflection of the institution’s leading position in the Andorran market, of conservative management and solid profit” and it also confirmed “the healthy quality of the bank’s assets, significant liquidity and strong capitalisation”.
Crèdit Andorrà continues to come first among Andorran banks in the Top 1000 produced every year by the magazine The Banker, part of the Financial Times group. This ranking classifies banks according to their capitalisation. At a global level, Crèdit Andorrà ranks 667th (edition of July 2011).
Commitment to society
In 2011, Crèdit Andorrà maintained its commitment to the country and society. Last year it allocated a total of 1.8 million euros to Corporate Social Responsibility programmes and actions, representing 2.53% of its total net profit. By area, 43% was allocated to social initiatives, 18% to education, 18% to economic development initiatives, 17% to culture and 4% to environmental projects. A large part of this activity has been channelled through the Fundació Crèdit Andorrà.
Sustainability and a firm commitment to the community are the key principles to the management model of the Grup Crèdit Andorrà, based on professional ethics and responsibility in terms of business, society and the environment. Investment in CSR is in keeping with the desire of Crèdit Andorrà’s shareholders to contribute permanently to the wellbeing of society and its development.