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 profit margin exceeds 100 million euros and it closes 2017 with profit after tax of 73 million euros
  • Cecabank awarded Spain's best Custodian Bank by the publication Global Banking and Finance Review, for its leadership in Securities Services
  • The bank holds 1,000 million euros in corporate equities

The European publication Global Banking & Finance Review has recognised Cecabank as the best custodian bank in Spain. The award, also received by the bank in 2016, recognises its high-quality Securities Services (with 139,700 million euros in custodied assets, approximately 15.4% more than last year), its innovation, excellence in customer service and solvency.

Results

The company closed 2017 posting a gross margin of 261 million euros (3% higher than in 2016), exceeding the forecasts of the second strategic plan being implemented by the company, with a 2020 horizon.

This was due to the good performance of the financial margin, which, despite the current context of falls in interest rates, was boosted by the increase in activity in customer business.

Fees also increased favourably. The results are an increase of 4.4% with respect to 2016, thanks to the launch of new products and services, such as the Comprehensive Securities Solution, a comprehensive service that addresses the new needs of customers within the framework generated by the recent implementation of the 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. As a result, the British publication The Banker has included Cecabank in the Top 25 disclosed bis ratio 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.

For more information click here

 

See PDF