· The strategy of internationalisation of the banking business, the commitment to the insurance sector, the consolidation of the synergies created in last year’s acquisitions and the rapid recovery of interest rates have all been key to growth.
· The results reaffirm the bank’s leadership in the Andorran market.
The Creand Group has closed 2023 with profits of EUR 71.3 million, a 60.05% increase on the previous year, and its business volume amounted to EUR 27.62 billion, 10.47% higher than in 2022. Last year, Creand concluded its 2021-2023 strategic plan more than 14% above the objectives set in terms of business volume, with significant organic and inorganic growth both domestically and internationally, continuing the upward trend it has enjoyed in recent years.
Customer assets under management rose 11.93% to EUR 24.89 billion. Loan investment remained stable at EUR 2.72 billion.
Around EUR 20 million of the total profits originated from the international business, while EUR 7 million came from the insurance business. Once the acquisitions of the Family Office business of GBS Finance in the Spanish market and Vall Banc in Andorra were integrated, 2023 was characterised by the consolidation of synergies that have been key to the growth in profits. Another reason for this rise in profits was the recovery of the interest rates in the markets.
These figures consolidate the bank’s leadership in Andorra, both in terms of customer assets under management (EUR 9.53 billion) and loan investment (EUR 2.41 billion). This leadership is reflected in support for the development of the country’s economy, business community and people.
Of the Group’s total business volume, approximately 40% is based in Andorra (EUR 11.95 billion), and the remaining 60% internationally. Luxembourg, with the subsidiary Creand Wealth & Securities, continues to grow organically, enjoying a 12.49% increase in business volume to EUR 10.67 billion. For its part, the Spanish subsidiary Creand Wealth Management, achieved a business volume of EUR 4.15 billion, up 21.12% on the 2022 figure. Lastly, Miami continues to consolidate its position as the core of the Group’s financial activity in the Americas, a region where the Group manages a business volume of EUR 2.02 billion, 4.15% more than the previous year.
The solvency and liquidity ratios are testament to the bank’s robustness. The liquidity coverage ratio (LCR) is at 155.92%, while the solvency ratio is at 17.78% (16.04% CET1). Own funds were at EUR 607 million.
Xavier Cornella, CEO of Creand, explained that “2023 has been a key year for the bank, both in terms of the outstanding organic growth and because we concluded a strategic plan with a higher volume of business than projected. We have grown in all the territories where we operate, both nationally and abroad, and that drives us to continue working towards the goals set in the 2024-2026 strategic plan. Our aim is to remain a benchmark in terms of customer service, innovation and digital transformation, and specialisation, as well as to continue ensuring the Group’s excellence and sustained and sustainable growth”.
Creand’s CEO remarked that “the outstanding increase in the Group’s profits in 2023 is marked by an atypical year due to the rise in interest rates, which have risen very rapidly, and by the good performance of the international business and the insurance segment. In the coming years, rates are expected to ease, although they are not expected to return to the unusually low levels of the last eight years”.
2024-2026 strategic plan
In February, the Creand Group presented its new strategic plan for 2024-2026. Directors from Andorra, Spain, Luxembourg and America shared the main lines and goals set to grow in the specialisation of products and services and the commercial and management team, to drive innovation and digital transformation, and to ensure global efficiency.
International recognition
In 2023, Creand Crèdit Andorrà was named Bank of the Year in Andorra by the Financial Times Group. It was also named the Best Digital Bank and Best CSR Bank in the country by Global Banking & Finance Review.
Fitch Ratings reaffirmed Creand Crèdit Andorrà’s rating at BBB- with a stable outlook, with a positive assessment of the bank’s adequate profitability, which it expects to continue rising steadily.
*The Financial Statements for the 2023 financial year are pending submission to the General Shareholders’ Meeting for approval.