The pandemic does not seem to be affecting Abanca’s income statement. The financial entity chaired by Juan Carlos Escotet obtained in the first quarter of 2021 an attributable profit of 137.4 million euros. The figure represents 8.2% more than in the same period last year, when the coronavirus had not yet shown its devastating effect on the economy.
A good part of Abanca’s growth is explained by the acquisitions policy of recent years. After the accounting integration of Bankoa and the acquisition of the Spanish network of Novo Banco, Abanca exceeded 100,000 million euros in business volume, the entity reports in a statement. “The Novo Banco operation, Abanca’s sixth since 2014, strengthens its position in personal banking and outside Galicia,” he says.
Since the beginning of the pandemic, Abanca has formalized more than 3,200 million euros in ICO credits and applied measures of financial flexibility for families amounting to 1,200 million euros.
Abanca ensures that it continues “Being the best entity in the Spanish financial system by asset quality”. Doubtful assets fell by 19.5% (24.1% without Bankoa), bringing the delinquency rate to 2.0%, leading the sector and practically half that of the Spanish average ( 3.9%) and below the European average. “This high credit quality has one of its bases in the diversification of the sector, something especially relevant in the current economic context”, highlights the bank. In addition, the entity’s main market, the community of Galicia, “continues to perform better than the whole of Spain both in terms of macroeconomic indicators and the evolution of the pandemic.”
Abanca increases its business volume by 20.2% and places it above 100,000 million, taking into account the recent acquisition of Novo Banco España. Without taking into account this latest purchase, whose accounting integration will take place in coming quarters, the entity has reached 98,487 million euros, 15.1% more than a year ago, thanks to the balanced growth of credit and customer funds.
The loan portfolio to customers in a normal situation, where The weight of financing to families and companies stands out, standing at 42,068 million euros after a year-on-year growth of 13.2% (8.5% excluding Bankoa). Customer funds reached 55,783 million euros after growing by 17.1% (11.4% excluding Bankoa). Customer deposits, the main component of the bank’s financing structure, grew by 15.2% (10.9% excluding Bankoa) and reached 44,551 million euros.
“Insurance and off-balance sheet fundraising show an equally dynamic behavior,” explains Abanca. The off-balance sheet grew by 25.7% (13.2% excluding Bankoa), with an increase in market share of 16 bp in mutual funds, 11 bp in pension plans and 4 bp in life insurance saving. Abanca achieved a 3.6% market share in total net mutual fund subscriptions in the quarter in Spain.
P&C and life risk insurance premiums grew by 13.4%, with a very homogeneous behavior in the different segments. Risk life grew by 14%, protected payments by 13%, health by 12% and companies by 9%.