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Fitch maintains Andbank’s rating at BBB, with a stable outlook.

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Andbank

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Fitch maintains Andbank’s rating at BBB, with a stable outlook.

The rating agency has maintained Andbank’s risk assessment at BBB, highlighting the bank’s ability to generate earnings, as well as its solid capital structure. The bank’s solvency (25.5%) and liquidity (65.58%) remain well above the European average. The rating agency Fitch Ratings has maintained Andbank’s long-term rating at BBB with a stable outlook. This rating […]

The rating agency has maintained Andbank’s risk assessment at BBB, highlighting the bank’s ability to generate earnings, as well as its solid capital structure.

The bank’s solvency (25.5%) and liquidity (65.58%) remain well above the European average.

The rating agency Fitch Ratings has maintained Andbank’s long-term rating at BBB with a stable outlook.

This rating is a reflection of a business model focused on offering private banking services and wealth management, the ability to generate recurring earnings as well as the Bank’s suitable level of capitalization.

The rating endorses the solvency and development of Andbank, which began its internationalization process in 2000. A highly diversified group with about 22,000 million euros managed.

Furthermore, the confirmation is proof of the solid structure of the bank’s corporate governance, and the strict internal control and processes that are implemented throughout the group. Fitch highlights the high solvency ratio (above 20%) as well as the efficient liquidity management, more than 60%, well above the required limit.

This maintenance of the rating consolidates the good progress seen in 2016. The Andbank Group closes 2016 with the satisfaction of having fulfilled the objectives set. Andbank has again beat its record high to date in revenue generation, with an ordinary margin of € 256 million, which confirms the excellent capacity of the business model in generating income.

In a complex international environment, this good result is due to the consolidation of its specialized model in private banking, geographical diversification and the trust that customers have placed in the bank.

Equity under customer management has remained at around € 22 billion, reaffirming the group as leader in Andorra. These data consolidate the positive trend that the bank started in 2008, with a cumulative average annual growth rate of 16.5%.

With interest rates at historical lows in the Euro Zone, the investment in international growth, and taking into account prudence criteria in balance sheet management, the Andbank Group closed 2016 with a net profit of 47 million euros, 19% higher than expected.

The company’s good results in 2016 have been reinforced by a solid capital structure and a comfortable liquidity position above 65% (well above the minimum required of 40%). In addition, solvency has increased to 25.50%, classified under the terms of Tier 1, according to Basel III, at 15.8%, and exceeding the capital requirements of equivalent European banks by more than 50%.