MoraBanc reaches EUR 30.1 M profit for the 2020 financial year

MoraBanc has closed the 2020 financial year with a 30.1-million-euro profit, compared with 25.1 million in 2019. The transformation begun five years ago and the implementation of a strategic plan marked by digitalisation, efficiency and client services have enabled the bank to achieve its fourth consecutive year of growth. This has been achieved despite the disruption and economic effects of COVID-19 and the additional resources and allocations devoted to minimising its effects on society, the clients and the bank itself.

In 2020, all MoraBanc’s business lines experienced growth. Assets under management increased by 6.5% to surpass 8 billion euros thanks to the contribution from all the business centres in Andorra and the international subsidiaries: Boreal Capital Management (Zurich/Miami) and Morawealth (Barcelona).

In addition to adding volume, the bank also strengthened its balance sheet by increasing its solvency, one of its differentiating elements, to 25.5% CET 1 fully loaded (27.34% CET 1 phase in) as of 31 December 2020.

The bank’s strength also reflects an increase in profitability (ROE) to 9.47% from 8.47% in 2019, and an improvement in the cost-to-income ratio from 66.4% in 2019 to 60.5% in 2020, thanks to a 7.50% growth in income and a 1.94% reduction in expenses.

In this context, the quality of the bank’s loan portfolio also stands out, with an improved non-performing loan ratio for 2020 of 3.0%, down from 3.3% in 2019; a stable loan book of 1.178,6 billion euros; and a loan loss coverage ratio of 79.2% at year-end 2020, up from 67% in 2019. In addition, the bank has increased its provisions by 16.8 million euros.

El Banco así mismo ha incrementado sus provisiones durante el ejercicio en 16 millones de euros.

MoraBanc’s Chairman, Pedro González Grau, emphasised that “the strength and recurring nature of these results are particularly commendable in such a difficult year with the effects of COVID-19, and reinforce our objective of constantly improving our service and added value for our clients, as well as the commitment of the entire human team that has made them possible.”

As for MoraBanc’s Managing Director, Lluís Alsina, he states that “we have managed to fulfil our strategic plan in two years instead of three, striving to maintain a competitive advantage that enables us to be a more robust and attractive bank that adapts to our clients’ current needs.”
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