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What strides have been made since implementing the 2013-2016
Strategic Plan?
The Plan’s implementation has led to a sustained improvement in the com-
pany’s financial ratios.
In terms of solvency, in 2013 Cecabank’s solvency levels stood at 18.4%.
After three years of implementing its Strategic Plan Cecabank has bolstered
these levels, and its common equity Tier 1 (CET1) stood at 31.87 per cent in
December 2016.
Its ROE has also showed strong improvement, placed at 8.47 per cent in De-
cember 2016 compared with 6.6 per cent in 2013 thanks to an increase
in profits over that period. Between December 2013 and December 2016,
after-tax profit grew by 47%, going from 52 million euros to 76 million euros.
Changes in credit ratings have also been very favourable. For example, Moody’s
long-term rating has gone up 2 notches since 2012, going from Ba1 to Baa2,
the same rating given to Spain and representing a ceiling that financial entities
cannot surpass. Ratings agencies placed most value on the strategic reorien-
tation of our company in its four years of existence, and more specifically on
our heightened solvency, adequate liquidity, consolidated excess at a national
level, and the bank’s business model (no retail, no property).
The Plan has also enabled us to have a more balanced business mix, increa-
sing the percentage of turnover in commissions to 63% in 2016 compared
with 38% at the start of the Plan. In this sense, one of the more notable
milestones we have achieved has been the diversification of our customer
portfolio, with Cecabank’s traditional market accounting for 31% in 2016
compared with almost 60% in 2013.
Cecabank has already laid out its road map for the next four years in its
2017-2020 Strategic Plan. What are the main objectives of the new Plan?
The strategy we have defined for the period 2017-2020 has at its core the
aim to maintain and reinforce the portfolio of services we currently offer,
but we wanted to be somewhat more ambitious, and are going to expand
certain elements of our business, completing the value chain we are offering
to our customers.
To achieve this goal, the Plan outlines the promotion of commercial activity
and extending contracts; developing and implementing technological im-
provements; expanding the client base - which will result from the new push
for commercial activity - and an increase in efficiency and service quality.
The Plan’s specific goal for the Securities Services business line is to broaden
its leading position in depositary services, completing its offer of services on
the value chain and starting to expand to international markets.
In Treasury Management we aim to increase the profitability of flows coming
from Securities Services and also complete the value chain. To this end, in De-
cember we started to operate on the equities market. We also want to consolida-
te our leading position in the banknotes business in Spain.
Todaywe can safely
say that Cecabank has
found its
niche in the Spanish
market as a specialist
service provider, and is
an established business.
Cecabank
2016 Annual Report
Page. 6