News

• The 25% increase does not include, for comparative purposes, the impact of the €89.1 million capital gains recorded in 2023 from the sale of the insurance broker March RS to Howden Iberia.
• The results for the first half of the year reflect growth across all income streams - net interest income was up by 22%, gross income by 8% and operating income by 25% - driven by an increase in customer numbers in the bank's specialist areas (Private Banking, Wealth Management and Corporate Advisory). The Retail Banking business posted further robust growth and continued to act as a catalyst for digitalisationn.
• Banca March maintained its sector-leading solvency position, with the highest CET 1 of any Spanish bank (20.93%) and a long-term deposit rating of A2 from Moody's, the highest rating in Spain, with a positive outlook.
• In July, Banca March signed an agreement with Euroclear, a leading global provider of Financial Market Infrastructure (FMI) services, under which Euroclear took a 49% stake in Inversis in order to accelerate the Spanish company's growth and global expansion. Inversis, a wholly owned subsidiary of Banca March, is Spain’s leading provider of global investment technology solutions and outsourced financial services for financial institutions, insurance companies and new players in the investment product distribution space.

In the Balearic Islands, the bank's home market, there was a notable increase in Private Banking turnover in the first half of the year (9.1% compared to June 2023).

Technology investment outperforms the sector average

Banca March's commitment to digital transformation responds to a strategic vision in which technology will become increasingly important in the financial sector. This is reflected in an annual volume of spending and investment in technology and digitalisation that is much higher than the average for the sector: in 2023, it accounted for 9.2% of the bank's gross income, compared to an estimated average of 8.1%. For 2020-2024, Banca March's total expenditure and investment will total 251 million euros, which includes an estimate of 64 million euros for 2024, 26% higher than last year.

The main objectives of this investment effort are, on the one hand, to improve the customer experience with more products and interaction in a more agile and secure environment and, on the other, to increase the efficiency of the work of the bank's professionals, so that they can concentrate their time on tasks with greater added value. 

As a result of this commitment, digital transformation at Banca March continues to grow; 85% of customers across the bank's specialised areas (Private Banking, Corporate Banking, Wealth Management and Large Companies) now use digital channels on a regular basis. In addition, during the first half of the year, March Broker's revenues increased by 24%. Banca March is consolidating its leadership in advisory technology with a complete omnichannel service, with Avantio as the main lever to provide a quality service to a customer with a digital profile and familiar with technological advances, to whom Banca March offers a range of services and products recognised for their quality.

The highest capital adequacy ratios in the industry

The bank continues to deliver strong capital generation capacity, with a CET 1 capital ratio at June 30 of 20.93%, the highest in the Spanish banking sector. In June, the average of the sector's 10 largest banks was 13.67%. The rating agency Moody's has rated Banca March's long-term deposits A2 with a "positive" outlook, positioning it as one of the best-rated banks in the Spanish financial system, with a stronger rating than Spanish sovereign debt (currently Baa1)..

Banca March continues to boast one of the lowest NPL ratios in the Spanish financial sector, without having resorted to large-scale discounted NPL portfolio sales: 1.81%, versus a sector average of 3.43% (latest Bank of Spain data). The bank's liquidity ratios – LCR (287.8%) and DTL (182.4%) – and NPL coverage ratio (51.9%) are among the highest in the sector.

The profitability of the business – an ROE of 12% at the end of June accompanied by a high CET1 solvency ratio – was driven by the growth in banking activity and the normalisation of monetary policy. In recent years, negative rates have penalised Banca March's excess liquidity at a high cost, given the bank's specialisation in advising savers and investors.

Banca March: the most reliable bank according to its customers

Maintaining levels of excellence in the quality of service is one of the fundamental pillars of Banca March's business model and customer response is thoroughly audited. According to Stiga CX's customer satisfaction benchmarking for the financial sector, as at June 2024, Banca March is the bank with the highest perception of stability and solvency, as well as the highest satisfaction with its branch services.

Professionals: the best manager training facility and a sense of pride in belonging

Banca March has established itself as the best training facility for private banking and corporate advisory specialists, as well as one of the best places to work in Spain. The bank's talent management model is underpinned by specialisation and training, with an investment in training of more than 1,000 euros per employee, 2.5 times the sector average (data as at 31/12/2023).

Just like its customer service quality, Banca March's people management model undergoes audits by the top international consulting firms specialising in assessment of human resources management. This year, Banca March has been recognised as the second best company to work for in Spain and, for the fourth consecutive year, as the only bank among the best companies with more than 1,000 employees, according to the Best Workplaces ranking prepared by the independent consultancy Great Place to Work®. The firm issues its certifications based on questionnaires conducted among the bank's professionals and on an audit that evaluates the people management practices and policies in place. According to the survey, 9 out of 10 employees are proud to work at Banca March and feel pride in the bank's achievements. The same proportion of employees believe that customers would rate the service they receive from the bank as "excellent". Likewise, 9 out of 10 professionals find the Banca March project attractive and say they feel motivated to achieve the bank's objectives. 

In the first few months of the year, Banca March was awarded Top Employer certification for the sixth consecutive year and Great Place To Work certification for the fifth year running.

Almost 14% of the bank's workforce now comes from its Talent Programme, which began in 2013. The bank appoints its future managers straight out of university as part of its unique, customer-centric model, offering a long-term career plan in line with the bank's business philosophy. Through its Talent Programme, Banca March seeks to nurture the development of its professionals within its corporate culture and areas of specialisation, while fostering a connection with its core values.

Inversis' international growth strategy

In July, Banca March announced a new phase in the growth and international expansion of its subsidiary Inversis thanks to an agreement with Euroclear, a global leader in Financial Market Infrastructure (FMI) services. Under the agreement, Euroclear will acquire a 49% stake in Inversis in the first phase, rising to 100% within three years. Inversis is the leading company in Spain in global investment technology solutions and financial services outsourcing for financial institutions, insurance companies and new players seeking to enter the investment product distribution business. The terms of the transaction will allow for stronger investments in technology and other areas at Inversis than was initially forecast before the transaction, as well as stepping up investment in human resources.

Since Banca March acquired 100% of Inversis in 2014, the company has been equipped with technology, human resources and other investments to strengthen the business and deliver a strategy of continuous growth, both in offering end-to-end asset distribution services to its institutional clients and in expanding its global footprint. Inversis has become the only Spanish firm with a comprehensive value proposition that combines the services of manager and administrator, depositary bank and fund distribution platform, both in Spain and for institutional clients who want to operate from Luxembourg, the basis of its international growth strategy.

Inversis began operations at its Luxembourg branch at the end of May, following the acquisition of Banque Havilland's institutional depositary business. Previously, in 2022 it had acquired 40% of Adepa, a Luxembourg group specialising in the management and administration of investment vehicles. The acquisition of Openfinance in July 2023 has also strengthened Inversis' domestic and international product strategy. The company offers its clients an end-to-end value proposition, which includes investment vehicle management and administration services through its partnership with – and stake in – Adepa, depositary and custodian services delivered out of its Luxembourg branch, and its own fund distribution platform, allowing its Luxembourg-based clients to make their products available to Inversis’ entire institutional client base and affording those clients access to the Luxembourg range.

Banca March CEO José Luis Acea said: "The results for the first half of 2024 endorse the strength of Banca March's business model, with increased profit delivered on the back of consistently growing customer numbers. Behind the figures lies the trust that savers are increasingly placing in Banca March. This trust is underpinned by the strongest financial soundness and solvency ratios in the Spanish banking sector and an unrivalled range of private banking and corporate advisory services, with a client-centric strategy and a comprehensive range of solutions tailored to any risk profile. All this would not be complete if it were not supported, as is our case, by teams of excellent professionals and by customer service at the highest levels".

BANCA MARCH - CONSOLIDATED GROUP

INCOME STATEMENT	30/06/2024	30/06/2023	Change
			Amount*	%
Net interest income	208,6	170,8	37,8	+22,1%
Gross income	339,3	315,5	23,8	+7,5%
Operating income	160,6	128,5	32,1	+25,0%
Profit from ordinary activities	117,6	94,1	23,5	+25,0%
Attributable profit (**)	117,6	184,6**	-67,0	-36,3%

*In € millions   

**Includes gross capital gain of €89.1 million from the sale of March Risk Solutions.   

BALANCE SHEET	30/06/2024	30/06/2023	Change
			Amount*	%
Loans and advances	9.003,1	8.487,6	525,5	+6,1%
Total deposits	15.622,4	12.277,0	3.345,4	+27,2%
Customer deposits	12.947,1	10.122,3	2.824,8	+27,9%
Equity	2.398,3	2.211,1	187,2	+8,5%
Total assets	21.440,9	18.270,1	3.170,8	+17,4%

 

Key ratios

Mora	30/06/2024	30/06/2023
NPL ratio	1,81%	1,27%
NPL coverage ratio	51,89%	74,92%

Capital	30/06/2024	30/06/2023
Capital adequacy ratio	20,93%	19,61%
Tier 1	20,93%	19,61%