The consolidated result of Banca March reaches 61.3 million until June



The consolidated profit attributed to Banca March during the first half of 2019 stood at 61.3 million euros, with a 0.9% reduction compared to the comparable result of the same period of the previous year, calculated in a homogeneous way according to the method of consolidation by equivalence and with a 15% participation in Corporación Financiera Alba (CFA), unlike the method of global integration that was used during the past year, with a participation in CFA of the twenty%.

The intermediation margin registered a notable advance of 7.0% and the gross margin grew 0.7%, despite the sharp increase in investment in technology and digitalization.

José Luis Acea, CEO of the entity, said that «in a challenging environment for the entire financial sector, the figures for the first half of this year keep us firm in our strategic positioning and reflect the ability of Banca March to continue consolidating its business model specialized in private banking and advice to companies, while building and ensuring, thanks to an intense investment effort, our future as a profitable, agile, efficient bank, prepared to give answers to the client, both current and next generation ».

Acea has indicated that «our investment is mainly focused on the scanning process, which at Banca March aims to identify in all areas of the organization the possibilities offered by technology to improve the way in which the bank creates value. The Digital Transformation Plan, which includes an investment of 75 million euros in the 2018-2020 triennium, will allow Banca March to capture future growth opportunities and offer added value, especially in the specialized segments of Private and Patrimonial Banking ».

More transparent consolidated accounts

The consolidated result of the first half of 2019 has been prepared according to the equivalence method, after the sale of a 5% stake in Corporación Financiera Alba (CFA) held at the end of last year, which leaves the position of Banca March in this investee company at 15%.

The change in consolidation criteria was the last step in the process of transformation and professionalization of Banca March initiated in 2016 with a view to the 2017-2019 Strategic Plan. From the entity point out that the new criterion shows more clearly and independently The results of the two affected entities, Banca March and CFA, which have always been managed independently, but whose global integration, the method used until then, caused interdependence.

To favor the year-on-year comparison in homogeneous terms, the consolidated results of the first half of 2018 are also presented in proforma terms, after having been recalculated according to the method of equivalence and with a participation in CFA of 15%, unlike the method by Global integration that was used during the past year.

Banca March ensures that its business model "continues to rely on solid financial parameters": the solvency ratio, after the change in the consolidation criteria of CFA, reached 15.29% at the end of June, one of the highest of the sector in Spain; the delinquency of the entity stood at 2.24%, the lowest in Spain and less than half of the sector average (5.64% as of May, according to the latest published data); and the liquidity ratio LCR, at 307.5%.

Family business financing

In the first six months of 2019, credit investment in the area of ​​companies, family businesses and business families increased by 13.6%.

The entity offers, in addition to traditional banking services (financing, collections and payments, foreign trade ...), a series of advisory and value-added products, such as alternative financing (short, medium and long term), mergers and acquisitions, direct lending, bespoke treasury solutions and risk coverage. It is a unique specialized offer in Spain, based on the firm commitment to reach companies the best and most appropriate financing alternatives that can be accessed by a family bank, without conflict of interest.

One of Banca March's strategic lines in the Companies area is to advise its clients in the search for alternative sources of financing - such as the issuance of promissory notes and bonds in the MARF or the Irish Stock Exchange - for what constituted Early 2013 the Capital Market unit.

In 2018 Banca March exceeded 3.4 billion euros placed in short-term financing in capital markets, 57% more than in the whole of 2017, while until June 2019 the amount amounts to more than 2,200 million euros. Additionally, and currently, Banca March has a market share in the MARF of more than 50% of the outstanding outstanding balance.

Last year, Banca March reinforced the Corporate Banking and Markets area with the creation of the Capital Market-Variable Income (ECM) unit, in order to offer its customers solutions to obtain their own resources and also provide them with the opportunity to adjust their shareholder base by transferring blocks of shares. The equity activity (ECM) has already achieved its first mandates for the execution of blocks of shares and it is planned to consolidate this activity with the obtaining of additional mandates.

The Mergers and Acquisitions unit continues to provide strategic and financial advice to the family business and the business family, such as the one carried out in the context of the purchase of Ice Cream Factory Comaker (ICFC) by the Ferrero Group. In addition, the entity currently participates in other ongoing operations in the food, hotel and technology sectors, among others.

Private and equity banking

The private and equity banking business, strategic element of Banca March and where it aspires to be the main reference in the Spanish market, continued growing in business volume by 3.9%.

The group's manager, March Asset Management (March AM), ranks third in the Spanish market by volume of Sicav, with 2,603 ​​million euros managed in this type of instrument at the end of March.

With a global equity of 5,835 million euros at the end of June, March AM is a fundamental part of the group's strategy. In fixed income, Fonmarch has advanced 2% since the beginning of the year. The profitability obtained by the profiled funds stands out: March Defensive equity accumulates an increase of 2.37%, March Conservative Portfolio rises 4.61%, March Moderate Portfolio 6.90% and March Portfolio Decided 9.85%. In equity, March Global rises 16.27%, March Europa Bolsa 8.33% and March New Emerging 8.08%. In the Basque Country, March EPSV Shares obtained a return of 17.26% in June and March Moderate EPSV of 5.83%.

On the other hand, March Pensions 80/20 revalued 5.66%, March Pensions 50/50 9.23%, March Shares 18.01% and March Pensions Protection 13.13%.

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