BancSabadell d’Andorra, Andorra (Pyrenees), held its general shareholders’ meeting, which showed the good health of the banking entity in all areas, with good results in the number of clients or the entity own funds. His chairman, Josep Permanyer, underlined that by the year 2017 the bank achieved 10 million 39 thousand euros which is 17,98% above the result of 2016. This has an impact on the financial ratios, which in the case of efficiency reaches 53%. This is a ratio that measures the productivity of an entity. It is the result of the quotient between operating expenses and gross margin. In other words, it relates to the income obtained with the expenses necessary to achieve it.
Despite these good figures, a prudent profit-sharing policy has been chosen: the dividends are increased to be distributed to 6,25 euros per share (0,50 cents more than in 2016 and one euro more than two years ago) representing a “pay out” (percentage of the profit distributed among shareholders) of 31,15%, and a yield on the nominal share of 10,4%. The rest is intended for capitalization. This culture of prudence translates to the fact that the bank’s own funds represents as of December 31, 2017, 81.35 million euros.
He also emphasized the intensification of the negotiations with the European Union (EU) for the association agreement while Standard & Poor’s reaffirms its valuation and stable outlook on the country and that the bank has the strength of Banc Sabadell , which will be important in view of the introduction of new banking standards such as MiFID II (The markets in financial instruments directive). The three basic principles are to provide clients of financial institutions with greater protection in terms of investments, transparency of information and greater efficiency in asset management.
The CEO, Josep Segura, explained that the bank is strongly capitalized and that there has been a growth in global volumes (resources and assets), despite the adaptation to the new information exchange environment. With regard to customer fees, they are 23.28% in private individuals and 42.47% in companies. Segura wanted to pay attention to the sustainability and growth potential of the bank’s business model, focused exclusively on the 100% market in Andorra. “We still have many possibilities of growth to exploit in the short and medium term. We will continue to promote our way of being and our way of being.”
The general meeting of shareholders for the year 2017 has been held at the Congress Center of Andorra la Vella on 18th May.
See also Andorra banks
See also Andorra business guide
