at a glance 2014 - · pdf file3 crèdit andorrà at a glance ... comprehensive...

At a Glance 2014English

Crèdit Andorrà at a glance3

The Crèdit Andorrà Group is the leading financial group of Andorra. We offer services of commercial banking, private banking and asset management on an international scale, supplemented with other Group business lines, such as the insurance activity.At the Crèdit Andorrà Group we share the essential values and objectives which define our way of being and acting, and which have led us to accredit, over the years, a high degree of professional and ethical rigour in our work. Our action is inspired on a cultural model characterised by com-bining the professional and ethical contribution of the human team with the added value of the products, services and comprehensive advice which we offer, together with proxi-mity, personal relationships and differentiation as principal values.Founded in 1949, the Crèdit Andorrà Group today has 750 professionals, distributed over a broad geography, the fruit of an important expansion plan developed in recent years, which has led to our presence in the world’s principal finan-cial centres: Spain, Luxembourg, Switzerland, United States (Miami), Chile, Mexico, Panama, Peru and Uruguay, as well as the Principality of Andorra, the headquarters of our activity.

Crèdit Andorrà Financial Group Basic details

WHO WE ARE

Headquarter Year of foundation Business areas

Employees Ratings (Fitch) Corporate Social Responsibility

Part-held companies Awards and Recognition

Andorra la Vella, Principality of Andorra 1949 Private banking Commercial banking (Corporate & Retail)Insurance group 750 (437 in Andorra) / 25 nationalities BBB long term and F3 short term* Crèdit Andorrà Foundation Crèdit Andorrà Chair of Markets,

Organisations and Humanism at IESE Business and sports sponsorship Environmental management: ISO 14001:2004

Global investment in CSR: 3.11% net profits Grandvalira (skiing)Caldea and Inúu (tourism) 1st bank in Andorra in capitalisation1

Best Private Bank Andorra 20132

GIPS Certificate Crèdit Andorrà Asset Management Bank of the year in Andorra 2002, 2003,

2004, 2006, 2007, 2008 and 20103

ISO 9001:2008 in Crèdit Andorrà Asset Management and in the departments of Treasury and Markets, and Market Administration

* July 20151 Ranking Top 1000 The Banker (Financial Times Group)2 The Banker&PWM (Financial Times Group) (ed. 2013) Global Banking and Finance Review (ed. 2015)3 The Banker (Financial Times Group)

Balance Sheet and Results (M €) Ratios (%)

SIGNIFICANT FIGURES 2014

2014 2013

Solvency 19.14

Liquidity 59.89

ROE 12.66

ROA 1.19

Tier I 15.84

Efficiency 38.59

20.26

73.82

21.7

1.21

18.45

41.96

2014 2013

Total business volume 15,472

Assets under management 12,418

Loan investment 3,053

Financial margin 73.81

Total operating income 227.92

Net profit from operations 114.69

Net Profit 71.24

16,547

13,564

2,983

66.55

227.41

102.71

71.54

Crèdit Andorrà at a glance 4

OUR POSITION IN THE SECTOR

Crèdit Andorrà in the Andorran financial sector

(in millions of euro) (in millions of euro)Equity

(in millions of euro) Loan investment

Total business volume

(in millions of euro)Assets under management

(in millions of euro) (in millions of euro)Total operating income Net profits

* Cumulative of the rest of banks that form the sector in Andorra. These data do not include information or volumes of Banca Privada d’Andorra because at the time of compiling these data are not available. Source: Annual report 2014 of each bank

69

307

539

Crèdit Andorrà 2014




Other banks2014*

719676705

646

1,000

800

600

400

200

0100

300

500

700

900

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0Crèdit Andorrà 2014




Other banks2014

16,547

14,410 13,199

15,472

1,9928,360

23,304

35,000

30,000

25,000

20,000

15,000

10,000

5,000





Other banks2014

13,56411,308 10,087

12,419

4,500

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500





Other banks2014

2,983 3,102 3,1123,053

1,6157,283

21,450

227.4195.64

174.46

227.92

450

400

350

300

250

200

150

100

50





Other banks2014





Other banks2014

71.54 70.86 70.6271.24

120

100

80

60

40

20

0

1.077377

1.854

24,78136,30

220,26

7,2640,18

64,30


Liquidity ratioSolvency ratio

10.00% legal minimum Andorra 40.00% legal minimum Andorra

Source: Bloomberg (Fitch), december 2014

Comparative rating


59.35%

40%

51.81%59.89%

73.82%80.00%

70.00%

60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%Crèdit Andorrà 2013


17.80% 17.39%19.14%

10%

20.26%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%Crèdit Andorrà 2013





HSBCDeutsche BankCrédit SuisseUBSCrèdit AndorràCaixabankCommerzbankBanco SabadellBanco Popular

AA-AAABBB (2015)BBBBBBBB+ (S&P)BB-

Awards

Top Andorran bank in the Top 1000 WorldThe Banker

Best Bank in Andorra CSR 2015Global Banking & Finance Review

Bannk of the Year on 7 occasions

Best Private Bank in Andorra 2013, 2014, 2015 Global Banking & Finance Review

Best Private Bank in Andorra 2013 The Banker / PWM (Financial Times Group)


Corporate Social Responsibility

SOCIETY

The Crèdit Andorrà Group understands social action as a commitment of service to the country and to people.The educational, social, cultural, economic and environ-mental initiatives which we promote are sustained by a

commitment the community and a wish to go with and con-tribute to the country’s economic progress, to which this 2014 we have assigned an investment of 2.23 million euro, 3.11% of the Bank’s profits.

Consolidated global investment

The Crèdit Andorrà Foundation, created in 1987, repre-sents Crèdit Andorrà’s involvement in these values, through decided and continued action which has led it to become the principal private foundation in Andorra, both in number of programmes led and in resources allocated.

The Foundation works in the fields of education, society and culture, with training as the backbone of the three.

The Crèdit Andorrà Foundation

Investment by the Foundation per field of activity

Created in November 2006, the Crèdit Andorrà Chair of Markets, Organisations and Humanism seeks to promote interaction between the business and university worlds, and to encourage an exchange of experiences and ideas in or-der to contribute to social progress.

Under the direction of Prof. Josep Maria Rosanas, the pro-fessorship works to put the academic perspective in touch with business reality, while at the same time encouraging study, research and social responsibility in companies and corporate government.

Crèdit Andorrà IESE Chair of Markets, Organisations and Humanism

Education Society Culture Others

Educ

atio

n30

.35%

Soci

ety

31.5

8%

Boos

ting

econ

omy

56.8

4%

Spor

tssp

onso

rshi

p43

.16%

Cul

ture

33.3

0%

Oth

er 4

.77%

Economic and institucional initiatives

65.31%

Environmentalinitiatives

1.94%

Fundació Crèdit Andorrà

32.75%

30.35%

31.58%

4.77%

33.30%


Founded in 1278 and with more than 700 years of inde-pendence and neutrality, in 1993 the Principality of Andorra approved its Constitution, thus attaining full international re-cognition as a state of law.

The country is established as a parliamentary democracy, with a head of government elected by the Consell General (Parliament). The State is structured in the form of a parlia-mentary co-principality, with two heads of State (the presi-dent of the French Republic and the bishop of Urgel) who hold the post jointly and indivisibly.

Andorra has been a member of the UNO and of the Council of Europe since 1993. Although not a member of the EU, through a monetary agreement with the EU the euro is the official currency.

Andorra offers an advanced economy, based on free mar-ket, open and flexible. GDP per capita is more than €36,000, higher than the European average and Spain and France.

The economic activity is directed principally to services, a sector which concentrates 90% of the country’s businesses and 83% of the labour market. Trade and tourism represent close to half the total employment in the service sector, prin-cipally dealing with the more 7 million tourists who come to the Principality every year, attracted by an offer centred, in essence, on skiing and similar activities, and on shopping.

Another of the strategic sectors of the Andorran economy is the financial sector, which is going through a transformation in order to adapt to the standards established by the EU and the OECD.Source: Andorran Chamber of Commerce, Industry and Services

GDP of 2,525.5 million euro High GDP per capita: €36,095 (EU average: €29,900) Tourism, commerce and related activities: 60% of the GDP

Cosmopolitan population: 60% foreign population, more than 100 nationalities

4th nation in the world in life expectancy (82 years) Low rate of criminality

ANDORRA

High quality of life, cosmopolitan population and a service economy

Political environment Socio-economic environment

Andorra

Area 468 km2

Population 76,949 (2014)*Official currency

Euro

Official language Catalan (other languages used: Spanish & French)

* Registered population. Source: Department of Statistics. Andorran Government


Outstanding tourist centre

With a population of below 80,000 inhabitants, Andorra receives annually a total of over 7 million tourists. A great offer in skiing, with 300 kilometres of pistes, combined with nature activities, attractive shopping malls and a big offer of services for free time, leisure and wellness, have made tourism into the principal sector of the Andorran economy.

More than 7 million visitors a year Hotel capacity of around 30,000 beds Shopping, free time, health and wellness are the principal reasons for visiting

The Madriu-Perafita-Claror valley declared as world heritage by UNESCO Architectural heritage: 60 Romanesque churches

Number of tourists

Source: Department of Statistics. Andorran Government

Season 2014/2015Number of slopes

Total length of slopes (km)

Skiing area (ha)

Mechanical lifts

Capacity (skiers /hour)

Snow cannons

Artificial snow cover (km)

* Vallnord groups together the Ordino-Arcalís and Pal-Arinsal resorts. ** Grandvalira groups together the Pas del Casa-Grau Roig and Soldeu-El Tarter stations.

Source: Ski Andorra

Ski resorts

International Living Index

France Germany Italy Andorra Spain Switzerland

4

7

11 12

22 24

Population (by nationalities)

Source: Department of Statistics. Andorran Government

Composition of GDP (2014) GDP per capita (in euro, 2014)

Construction5.81 %

Real State activities

9.81 %

Industry 5.21 %Others activities 5.81 %

Public Adm. 13.91 %

Financial activities23.22 %

Wholesale and retail15.82%

Accomodation and food services 7.71 %

Transport, communicationsand professional act.12.11%

Agriculture 0.60 %

Vallnord*

79

93

707

45

54,990

402

46

Grandvalira**

118

210

1,926

66

100,700

1,027

136

Total

197

303

3,075

111

155,690

1,429

182

Andorran35,412

Spanish20,301

French3,753

British 962

Portuguese 10,699

Other nationalities5,189

Argentine 633

Year 2014 Year 2013 Year 2012

7,900,4407,676,178

7,126,437

8,500,000

8,000,000

7,500,000

7,000,000

6,500,000

6,000,000

5,500,000

5,000,000

100.00090.000 80.00070.00060.00050.00040.00030.00020.00010.000

0Luxem-bourg

Switzer-land

EUA Andorra Germany France EUaverage

Spain

88.500

65.814

35.200 32.20036.095

41.100

29.90022.780


The legal and financial environment International tax harmonisation

Andorra is immersed in a process of changing its economic model to promote its modernisation, harmonisation and competitiveness on the international scene.

A strong, transparent model

The Andorran financial system is one of the main pillars of Andorran economic activity (over 20% GDP). It benefits from a strong reputation and stands out among other financial markets for the high rate of solvency and liquidity of its banking system, the result of a policy of high capitalisation from the outset. Five financial groups form the national banking system.The Andorran National Institute of Finance (INAF) is the body that supervises and regulates the financial entities, with similar competencies to supervisory bodies in other developed countries.

Comparative tax framework*

CORPORATE TAX Profit tax 10% 30% 36.1% 31.5% 12.5% 29.2% 8.5 + cantonal tax 33.3%Capital gains tax 0-15% 30% 33.33% 25% 25% 22.05% 35% 33.3%

PERSONAL INCOME TAX IRPF 10% Up to 52% Up to 50.2% Up to 53% 41% 43.6% From 21.6% ---

INDIRECT TAX IGI (VAT) 4.5% 21% 19.60% 23% 23% 15% 8% 19.6%

ANDORRA SPAIN FRANCE PORTUGAL IRELAND LUXEMBOURG SWITZERLAND MONACO

Opening up the economy to foreign investment, regula-ted by law (2012) and allowing 100% direct foreign in-vestment.

Laying down a low-profile tax framework in line with in-ternational requirements.

Signing the OECD Multilateral Convention on Mutual Administrative Assistance on Tax Matters.

* Màximum rate. Source: Eurostat

Within the framework of restructuring the entities on a glo-bal scale, the Andorran banking system has met the re-quirements of international financial regulations, in keeping with the global trend towards greater transparency in the sector: Moneyval measures to combat money laundering and

the financing of terrorism. The implementation of the Monetary Agreement with the

EU (2011), bringing the Andorran legislative framework on banking and finance matters into line.

Joining the International Organisation of Securities Com-missions (IOSCO).

Double Taxation Agreements

Andorra has signed five bilateral double taxation agreements –with Spain, France, Portugal, Luxembourg, Liechtenstein and United Arab Emirates. These agreements eliminate

double taxation for companies of both countries when operating in the territory of the other.


Crèdit Andorrà Group in the world

MIAMI (UNITED STATES)ASSET MANAGEMENT

Beta Capital Wealth Management

MÉXICOASSET MANAGEMENT

CA México Asesores Patrimoniales,asset manager

PANAMABANKING AND FINANCIAL ACTIVITY

Banco Crèdit Andorrà (Panamá)

PERUASSET MANAGEMENT

CA Perú Sociedad Agente de Bolsa, securities company

ANDORRABANKING AND FINANCIAL ACTIVITY

Crèdit Andorrà

ASSET MANAGEMENT

Crèdit Andorrà Asset Management / Crediinvest, SA,group investment fund management company

INSURANCE

Crèdit Assegurances, life assurance Financera d’Assegurances, non-life insuranceCA Vincles Actuarial Consulting, actuarial advisory company

SOCIAL ACTIVITY

Crèdit Andorrà Foundation

PART-HELD COMPANIES

Tourist Sector Grandvalira (snow services) Caldea / Inúu (leisure services) Crèdit Iniciatives, capital-development company

SPAINBANKING AND FINANCIAL ACTIVITY

Banco Alcalá

ASSET MANAGEMENT

Alcalá de Pensiones, pension fund manager Gesalcalá, SGIIC, investment fund manager ICVC

INSURANCE

ERM, insurance consultant and broker CA Life Insurance Experts, life assurance

SWITZERLANDASSET MANAGEMENT

Private Investment Management, asset management company

LUXEMBURGBANKING AND FINANCIAL ACTIVITY

Banque de Patrimoines Privés, SA

ASSET MANAGEMENT

Crediinvest Sicav / Investcredit Sicav, group investment companiesCA Asset Management Luxembourg, asset manager

URUGUAYBANKING AND FINANCIAL ACTIVITY

Representation Office of Crèdit Andorrà and of Banco Crèdit Andorrà (Panamá) in Uruguay

CHILEINSURANCE

CA Vincles Actuarial Consulting, actuarial advisory company

Note for

IMPORTANT LEGAL INFORMATION

This document has been prepared by Credit Andorrà Financial Group.

This document is for distribution only as may be permitted by law. It is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or would subject Crèdit Andorrà Financial Group to any registration or licensing requirement within such jurisdiction.

The information contained in this document represents the opinion of Crèdit Andorrà Financial Group’s analysts on markets and could be modified and/or updated without prior warning. This document is published for general background information purposes. Although the information and data herein are obtained from sources believed to be re-liable, no representation is made by Crèdit Andorrà Financial Group nor by any of its analysts that the information contained herein is complete or accurate. Financial analysts and any other relevant people involved in the preparation and dissemination of this document are independent of those holding a significant interest in the purpose of the report. In no event, a compensation has been received from issuers or there is a commitment or engagement in order to produce favourable reports.

Statements that are nonfactual in nature, including opinions, projec-tions and estimates, assume certain economic conditions and industry developments and constitute only current opinions that are subject to change without notice. Certain information contained herein constitutes “forward-looking statements”, which can be identified by the use of for-ward-looking terminology such as “may”, “will”, “should”, “expect”, “an-ticipate”, “project”, “estimate”, “intend”, “continue” or “believe”, or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results or the actual performance may differ materially from those reflected or contem-plated in such forward-looking statements. As a result, they must not be taken into account either as a reliable source of future performances or guarantee to reach such outcomes.

Data related to outcomes of financial instruments, financial index, finan-cial metrics or to the investment services that may be contained herein, may be affected by commissions, fees, taxes or associated expenses

Andorran investors: this document has been prepared by Crèdit Andorrà Financial Group, and it could be distributed by either Crèdit Andorrà, SA or Credi-Invest, SA, both entities authorised regulated and supervised by the Institut Nacional Andorrà de Finances (INAF);

Spanish investors: this document has been prepared by Crèdit Andorrà Financial Group and it is distributed by Banco Alcalá, SA, authorised, regulated and supervised by the Banco de España and the Comisión Nacional del Mercado de Valores (CNMV);

US investors: this document has been prepared by Crèdit Andorrà Financial Group and it is distributed by Beta Capital Management, LLC authorised, regulated and supervised by the State of Florida and the US Securities and Exchange Commission;

Luxembourg investors: this document has been prepared by Crèdit Andorrà Financial Group and it is distributed by Banque de Patrimoines Privés, SA, authorised, regulated and supervised by the Commission de Surveillance du Secteur Financier (CSSF);

Swiss investors: this document has been prepared by Crèdit Andorrà Financial Group and it is distributed by Private Investment Management, SA, authorised, regulated and supervised by the Association Suisse des Gérants de Fortune. This document is not a product of any “Financial

Research Unit” and is not subject to the “Directives on the Independence of Financial Research” of the Swiss Bankers Association. This document has not been prepared in accordance with the legal and regulatory requirements to promote the independence of research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. Therefore, regulatory restrictions on Crèdit Andorra Financial Group dealing in any financial instruments mentioned at any time before is distributed do not apply;

Uruguay investors: this document has been prepared by Crèdit Andorrà Financial Group and it is distributed by Crèdit Andorrà Uruguay Asesores de Inversión S,; authorised, regulated and supervised by the Superintendencia de Servicios Financieros del Banco Central de Uruguay (SSF- BCU);

Mexico investors: this document has been prepared by Crèdit Andorrà Financial Group and it is distributed by Crèdit Andorrà Asesores Patrimoniales, SA de CV;

Panamá investors: this document has been prepared by Crèdit Andorrà Financial Group and it could be distributed by Banco Crèdit Andorrà (Panamá), SA, authorised, regulated and supervised by the Superintendencia de Bancos and the Superintendencia del Mercado de Valores (SMV).

to be borne by such gross outcomes, prompting, among other things, a decrease on the outcomes that may be either higher or lower depending on the particular circumstances of the investor.

This document does not constitute an offer on behalf of Crèdit Andorrà Financial Group nor any of its analysts. This document is not in any case intended to be taken as a buy or sell personal recommendation on neither assets nor a representation that any investment strategy or recommendation is suitable or appropriate to an investor’s individual cir-cumstances.

Neither shall this document not its contents form the basis of any con-tract, commitment or decision of any kind. The relevant readers should take their decisions based on their own analysis and with the advice of independent advisors that they deem appropriate. In any case, it would be understood that in distributing the present document neither Crèdit Andorrà Financial Group nor its analysts are making personal investment recommendations.

Trading in financial markets can involve considerable risk and requires constant monitoring of current positions. Neither, Crèdit Andorrà Finan-cial Group nor its analysts, employees or managers assume any liability for any investment or divestment decisions made based on this publica-tion nor for any losses that could result from investment or divestment decisions based on this document.

Any statements contained in this document attributed to a third party represent Crèdit Andorrà Financial Group’s interpretation of the data, information and/or opinions provided by that third party either publicly or through a subscription service, and such use and interpretation have not been reviewed by the third party, therefore, Crèdit Andorrà Financial Group, its affiliates nor its analysts, offers no warranty, either express or implicit, regarding its accuracy, integrity or correctness.

The information contained in this publication is strictly confidential. No part of this publication may be reproduced, transformed, distributed, published, forwarded or used in any manner without the prior written permission of Crèdit Andorrà Financial Group. Any publication, modifica-tion or update of this material is subject to variable periodicity and does not imply any obligation on behalf of Crèdit Andorrà Financial Group.

www.creditandorragroup.com

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at a glance 2014 - · pdf file3 crèdit andorrà at a glance ... comprehensive...

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