Cecabank achieves three consecutive years with a pre-tax profit margin of over 100 million euros
10 May 2018
- For the third consecutive year, the bank's pre-tax profits exceed Euros 100 million. The bank ends 2017 with a profit after tax of Euros 73 million
- Cecabank has received the award for the best custodian in Spain from the publication Global Banking and Finance Review
- The bank holds 1,000 million euros in corporate equities
Cecabank has been recognised as the best custodian bank in Spain by the European publication Global Banking and Finance Review. The award, which the bank also won in 2016, rewards leadership in Securities Services (with Euros 139,700 million in assets under custody, which is 15.4% more than last year), as well as innovation, excellence in customer service and solvency.
Financial results, EBT of more than Euros 100 million
The bank ended 2017 with a gross margin of Euros 261 million (3% more than in 2016). This is higher than the figure included in the second strategic plan that the bank is currently operating, which has a horizon of 2020.
This has been made possible thanks to the positive performance of the financial margin. Despite the fact that interest rates are currently low, the performance of the financial margin has been driven by an increase in customer brokerage activities,
Fees also increased favourably. which have grown by 4.4% compared to 2016, thanks to the launch of new products and services such as. An example of this is the Global Securities Solution, an integrated system that responds to the new needs of customers within the framework generated by the recent implementation of MiFID II.
Cecabank posted profits of 73 million euros in the financial year. After the distribution of the result, in March 2018 the bank attained for the first time corporate equity of 1,000 million euros. The CET 1 remained high, standing at 27.43%, surpassing by far the European average. This figure is significant for the strategy as the provision of services such as depositary, custody and settlement of securities requires a solid capital base. In this regard, the British publication The Banker rated Cecabank as one of the top 25 banks with the best BIS capital ratios in the world in 2017.
Areas of activity
Cecabank is a wholesale bank that develops three synergistic lines of business: Securities Services (depositary, custody, clearing and settlement of securities), Banking Services (processes and technology solutions specialised in payment methods and systems, regulatory consultancy, new channels of business intelligence and an international business team) and Cash Management (operations in domestic and international markets, of public and private fixed-income, equities, currencies and derivatives). In 2017, 37% of the bank's gross income was generated in the Securities Services activity, 35% in Treasury Management and 28% in Banking Services. These percentages reflect a balanced mix of revenue that demonstrates the long-term sustainability of the Cecabank business model.
In 2017, Cecabank consolidated its Securities Services line thanks to the renewal of long-term contracts and customer diversification with the incorporation of new independent managers, venture capital managers and investment service companies.
In Treasury Management, the bank achieved a base of customers and counterparties: major banks, insurance companies, corporates and management companies. Also highlighted among its activities was the launch of new equities operations and intensive activity in primary markets.
In Banking Services, diversification resulted in a higher growth in the Banking Training School, the Comprehensive Reporting Service and the Treasury Management Platform. The bank's entry into the Fintech segment and innovation in mobile payments services was also an important factor in its success.
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