MoraBanc introduces a new strategic plan to make profits of 30 million euros in 2021
29 October de 2018
MoraBanc plans to keep up the trend of growth in profits which began in 2017, aiming to reach 30 million euros by 2021. This is the main objective of the new strategic plan for the next three years, which the bank has just unveiled.
In 2017, MoraBanc’s profits rose to 23.5 million euros and the momentum generated, based on rapid and effective adaptation to the new financial reality, has continued this year. In the first half of 2018, client funds grew by 6% and the volume of loans by 5%. Growth will continue over the rest of the year and, thanks to the new strategic plan, will be reinforced over the next three years.
MoraBanc’s Director General, Lluís Alsina, believes that this strategic plan “is ambitious, but feasible, thanks to our very clear direction and our talented, committed team. Over recent years they have already shown that they are capable of achieving established objectives. We are working to expand, particularly in the Andorran market”. The plan is based on three main pillars.
The first is business growth. In Andorra, the market in which MoraBanc’s main commitment and focus lies, new client segmentation, on-going improvement of our value proposal, granting of loans and management of private banking clients, are the main aspects of this line of growth.
International growth is also forecast, in line with the trend set over recent months. Between January 2017 and June 2018, client funds of our Zurich and Miami subsidiaries rose by 14%, and now represent 30% of the Group’s total funds.
Investment in technology and productivity are two other key features. In 2017, MoraBanc reduced its costs by 22% with respect to 2016. Over the next few years, the area digital banking will be strengthened and processes will be simplified, in order to be ever more efficient.
From transformation to the consolidation of growth
In 2015, the banking industry in Andorra experienced some of its most challenging times, with a change in strategy and subsequent increased international renown. At that time MoraBanc began a transformation plan to adapt to the new reality. With significant investment and personal effort, we committed to digitalisation, cost optimisation and adaptation to regulatory requirements, with the utmost speed. The results for the 2017 financial year supported this decision, with profits rising again (3.6%), and were proof that we are a bank with a strong, solid balance. Now a new stage is now under way, with on-going growth as the main objective.