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Fitch confirms Andbank’s BBB rating

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Fitch confirms Andbank’s BBB rating

Escaldes-Engordany, 20th April 2020. Fitch has confirmed Andbank’s BBB long-term credit rating. The rating agency has revised the outlook from stable to negative due to the current environment caused by the coronavirus pandemic, underscoring that Andbank has headroom to emerge from the crisis with its ratings intact. According to Fitch, “these expectations are primarily driven […]

Escaldes-Engordany, 20th April 2020.

Fitch has confirmed Andbank’s BBB long-term credit rating. The rating agency has revised the outlook from stable to negative due to the current environment caused by the coronavirus pandemic, underscoring that Andbank has headroom to emerge from the crisis with its ratings intact. According to Fitch, “these expectations are primarily driven by its diversification of income sources, which is greater than domestic peers’, and which should provide greater resilience to earnings pressures”.

The rating agency makes reference to the fact that Andbank is better positioned among its domestic peers in terms of its low impaired loan ratio (2.9%) and its substantial loan impairment reserves (103%).

The rating agency also considers that Andbank’s profitability has proved solid and benefits from a high percentage of fee and commission income (61% of the operating income in 2019).

Andbank closed 2019 with a volume of assets under management of nearly €24 billion, up 9.6% on the previous year. The Group’s net profit exceeded €28 million, which represented an increase of 3.6%. One of the keys to Andbank’s solid growth continues to be its international scale, which is the result of an initiative undertaken in 2008 and that now allows the bank to have a presence in 11 countries.