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Banca March - Hacer crecer, seguir creciendoNews

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At Banca March, we want to keep you always informed, and this section gives you the opportunity to find out whatever you want to know about.

06/01/2017

FIRST QUARTER 2017 RESULTS

Banca March Group's profits amounted to €82.2 million at the close of the quarter in March.

  • Earnings for banking activities tripled during the first quarter of the Strategic Plan 2017–2019, when compared to the same period of 2016, reaching €26.8 million.
  • Growth accelerated for all key banking indicators: interest margins rose by 21.6%, commissions increased by 42.6% and off-balance sheet funds grew by 12.2%.
  • The soundness of Banca March's specialised business model continues to rely on solid financial and capital ratios: the institution has the lowest non-performing asset ratio in the sector (3.9%) and one of the highest levels of solvency in Europe (21.1%). Moody's acknowledged this solidity and upgraded the institution's long-term rating to A3, the highest rating in the Spanish financial system.
  • Customer satisfaction also reflects these same levels of excellence and is among the highest in the sector: customers' satisfaction with their account manager exceeds 9 points and the institution's Net Promoter Score is above 30%.
  • The Private Banking business, one of Banca March's strategic growth areas, experienced double-digit increases for all key parameters: business volume (+13.1%), number of customers (+19.3%) and off-balance sheet funds (+15.6%).
  • The Corporate Banking area strengthened its leading position by offering financing alternatives to companies, family-owned businesses and entrepreneurial families. Banca March also consolidated its position as coordinating entity of promissory note programmes for the Alternative Fixed Income Market (MARF), with a quota exceeding 50%.  

During the first quarter of 2017, Banca March Group's net profits amounted to €82.2 million, representing a 423.6% increase when compared to the same period of the previous year. Its consolidated results include the capital gains obtained from the sale of 4.97% of ACS and the revaluation to market prices of the remaining holdings in said company, which are now accounted for as non-current assets held for sale.

It is worth highlighting that results for banking activities grew by a factor of 2.7 during the first quarter of Strategic Plan 2017–2019 compared to the first three months of 2016, reaching €26.8 million.

During the first three months of Strategic Plan 2017–2019, growth in all key banking business indicators accelerated: interest margins grew by 21.6%, revenues from service provision rose by 42.6% and off-balance sheet funds increased by 12.2%. Total business volume increased by 7.4% for the bank as a whole. At the end of March, Banca March's total net assets as an individual bank exceeded €1.0815 billion.

RAISING MARGINS AND SPECIALISATION

All the margins saw significant increases. At the close of March, interest margins had grown by 21.6% and revenues for service provision, whose growth is particularly noteworthy, increased by 42.6%, its main drivers being investment fund management and SICAV, Capital and Treasury Market activities, and the distribution of insurances and means of payment. The contribution of these revenues to the ordinary margin is increasing (36.2% at the end of March as opposed to 28.7% at the close of March 2016), which is a clear reflection of Banca March's strategy to specialise in consultancy for companies and Private Banking.  

STRONG GROWTH IN BANKING ACTIVITY

José Luis Acea, CEO of Banca March, pointed out: “During the first three months of 2017, the results obtained by the institution surpassed the ambitious goals set for this period of Strategic Plan 2017–2019. The aim of this plan is to make Banca March its customers' benchmark institution and to double, over the next five years, its business in private banking and family-owned companies. To do so, it will rely on its sound balance sheet, its collective investment products and its excellent consultancy services. The growth registered during the first quarter, in terms of business volume and number of customers, reflects the trust placed in our business model, which specialises in Private Banking and consultancy for companies and has yielded some of the best solvency, liquidity and non-performing asset ratios in Europe. Moreover, this strategy has been well received by our customers, as reflected by the excellent levels of perceived quality and high Net Promoter Scores. Business growth has been particularly strong on the Balearic Islands”.

BROAD-SENSE SOLVENCY

True to its philosophy of prudent long-term management, Banca March's business model is backed by solid financial ratios: at the end of March, the institution's solvency ratio was 21.1%, one of the highest in Europe; its non-performing loans ratio stood at only 3.9%, the lowest in the sector nationwide; and its liquidity ratio reached 318.8% at the close of the quarter.

The solidity of Banca March's credit profile, in terms of capital requirements, as well as the quality of its assets and ample coverage of financial requirements, were recently acknowledged by credit rating agency Moody's, which evaluated Banca March's long-term debt and updated its rating from Baa1 to A3, with a stable outlook. Banca March therefore has the highest rating in the Spanish financial system, above that of the Kingdom of Spain, which is currently Baa2. In accordance with the system used by Moody's, Banca March's rating can only improve if Spain's does. The rating for Banca March‘s short-term deposits remains at P2.

SATISFIED AND LOYAL CUSTOMERS

Service quality is one of Banca March's cornerstones, which is why the institution uses a comprehensive system, based on market standards, for monitoring customers' opinions. The most up-to-date data available show excellent levels of customer satisfaction, the most noteworthy index being account manager satisfaction, where a score above 9 points was attained. Moreover, Banca March's customer loyalty index, measured according to the Net Promoter© Score (NPS), reached 33.1% in March for the whole of the bank and even higher (nearly 40%) for the Private Banking area.

A BENCHMARK IN PRIVATE BANKING

The Private Banking business - Banca March's strategic focus and a sector where it aims to become a benchmark in the Spanish market - recorded a strong boost during the first quarter of 2017. The number of customers in this business segment was up 19.3% compared to the same period of 2016; the institution's business volume increased by 13.1% and off-balance sheet funds grew by 15.6%. With regard to customers' confidence in Banca March Group's Private Banking services, one of the most illustrative signs is the favourable evolution of the total SICAV assets under the management of March Asset Management. SICAV assets reached €3.364 billion by the end of March, making it the number three in the Spanish market in terms of SICAV volume.

  March A.M., whose global assets, as at the end of the quarter, amounted to €6.852 billion, is a key piece in the Group's strategy. Over the past year, March Asset Management's pension plans have been among the top of the ranking, in their respective categories, in terms of profitability, and received several awards during the 28th Expansión and Allfunds Investment Funds Awards. More specifically, Fonmarch F.I. received the award for "Best Short-Term Fixed Income Investment Fund in 2016" (yield of 3.9% over 12 months) and March Acciones P.P received the award for "Best Global Equity Pension Fund" (12.4% return). March A.M. was a finalist in the category of "Best Domestic Fund Manager 2016".

COLLECTIVE INVESTMENT, A UNIQUE PROPOSAL

Banca March continues to strengthen its collective investment services, allowing customers to invest in the same products as the bank does - a unique proposition in the Spanish financial market. The three institutional SICAVs managed by March Asset Management (March A.M.) are a good example of collective investment. Torrenova is the most important SICAV in Spain with €1.474 billion in assets under management. It was created over 20 years ago as an investment instrument for bank shareholders and is currently comprised of 6,433 customers. Bellver (519 million euros’ worth of managed assets) and Lluc (196 million) round off this group of products. All three cases are examples of a unique SICAV model: a minimum investment of one share is required, meaning that anyone can participate and benefit from the yield provided by these financial instruments. Customers also have the opportunity of participating in other forms of collective investment with the bank’s shareholders through several of the Group’s other investment alternatives in the sector of real estate, special funds and business projects, among others.

ALTERNATIVE CORPORATE BANKING PRODUCTS

The Corporate Banking business, specialised in the field of companies, family-owned businesses and entrepreneurial families, continues to afford Banca March a leading position in some of the key businesses in this area, such as promissory notes for the Alternative Fixed Income Market (MARF). As an underwriting entity, Banca March's market share currently exceeds 50% with Gestamp, Elecnor, Barceló, Tubacex, Europac, Maxam and Fortia Energía among its issuers. In addition to traditional banking services (financing, collection and payment settlement, etc.), the Corporate Banking area also offers customers a broad range of corporate consultancy products with increased added value: balance sheet disintermediation, mergers and acquisitions, direct lending, customised treasury solutions and risk hedging. These highly specialised services are exclusive to Banca March. The institution's commitment is to offer our client companies alternative forms of financing, which they can access with the support of a dynamic family bank and the guarantee of no conflicts of interest.

DATA ON BANKING ACTIVITY 31/03/2017 31/03/2016 Variation
Amount* %
Customer bank funds 8,147.0 7,874.0 273 3,5%
Off-balance sheet funds 8,481.0 7,556.0 925 12.2%
Loans to customers 7,261.0 6,805.0 456 6.7%
BALANCE DETAILS 31/03/2017 31/03/2016 Variation
Amount* %
Net Equity 4,845.0 4,190.1 654.9 15.6%
Total assets 17,410.2 16,252.6 1,157.6 7.1%
PROFIT AND LOSS ACCOUNT DETAILS 31/03/2017 31/03/2016 Variation
Amount* %
Interest margin 49.6 40.8 8.8 21.6%
Commission 53.2 37.3 15.9 42.6%
Allocated result 82.2 15.7 66.5 423.6%

KEY RATIOS

DEFAULT 31/03/2017 31/03/2016
Non-performing loan ratio 3.9% 3.9%
Coverage ratio 54.2% 81.5%
Capital 31/12/2016
Solvency ratio 21.1%
Tier 1 20.8%

Amount in millions €

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