Crèdit Andorrà Private Bankers

Andorra la Vella, 18 de August del 2011

Crèdit Andorrà, leading Andorran financial group, maintains an optimum position in the Top 1000 ranking prepared every year by The Banker, the prestigious financial publication of the Financial Times Group. The entity holds position 667, heading the list of Andorran banks. In spite of the difficult international financial situation, the results obtained at the 2010 year-end consolidate Crèdit Andorrà as one of the most solid and solvent banks in the financial panorama and reflect a very high capacity of resistance in the most negative scenarios.

The Top 1000 publishes annually a list of the top 1,000 banks in the world according to their capitalisation. This classification is one of those most valued internationally, as it assesses the financial strengths of the various institutions. Crèdit Andorrà heads the list of Andorran banks for another year, confirming its privileged position in the international field and its status as a bank of reference in the Principality of Andorra.

In order to prepare the ranking, The Banker assesses principally the capitalisation (shareholders’ equity) of each bank in order to establish the degree of solvency. On this point, Crèdit Andorrà leads the Andorran banking sector with a total of 632 million euro.

The publication particularly takes into account data referring to the TIER 1 ratio when preparing the ranking. This ratio compares the bank’s own resources with its assets weighted by risk, in accordance with Basle international standards. On 31 December 2010, Crèdit Andorrà had a TIER 1 ratio of 15.44%, a coefficient which easily surpasses the established minimums (Basle III fixed the minimum TIER 1 at 6%).

In terms of solvency ratio (coefficient measuring a bank’s capacity to meet its short- and long-term obligations) Crèdit Andorrà has a solvency ratio of 18.81%.

The difference between the TIER 1 and the solvency ratio is that in the first only includes the top quality capital which can be applied to meet losses in the event of short-term problems. The calculation of the solvency ratio, according to the INAF criteria and Basle international rules, uses a broader concept of capital, including reserves for the revalorisation of assets, among others. Therefore this is always a higher coefficient than the TIER 1. In the case of Crèdit Andorrà, the small difference between the two ratios indicates that the capital included is of maximum quality.

TIER 1 ratio: 15.44%
Solvency ratio: 18.81%

Crèdit Andorrà Group

Crèdit Andorrà is the leading financial group in Andorra. It has the largest network of branches in the country and employs a staff of 552. It manages a business volume of 12,270 million euro (2010) and is leader in the sector in own resources, managed resources, business volume, credit investment and profits.

Formed in 1949, it offers commercial banking and private banking services, which are supplemented with other business lines offered from the Group, such as insurance and asset management on an international level. Crèdit Andorrà is currently in a process of expansion which has led to its presence also in Spain, Switzerland, Luxembourg, Mexico, Panama and Uruguay.