2011 INFORME ANUAL ANNUAL REPORT 2011 www.bancamarch.es USB ANNUAL KEY CONTENTS REPORT FIGURES Av. Alexandre Rosselló, 8 07002 Palma de Mallorca, Spain Tel. 900 111 000 ANNUAL REPORT 2011 BANCA MARCH (SUMMARY) (+34) 971 779 111 CONSOLIDATED FINANCIAL STATEMENTS (IN SPANISH) ANNUAL REPORT 2011 Go to the web page of Banca March www.bancamarch.es KEY FIGURES Banca March Group Banca March, S.A. Thousands of euros Thousands of euros 2011 2010 variation % 2011 2010 variation % Business volume Business volume Shareholder’s equity 3,374,672 3,425,147 -1.5 Shareholder’s equity 760,802 728,439 4.4 Managed assets 10,060,751 9,561,083 5.2 Customer deposits 7,588,360 7,111,635 6.7 Managed loans 7,980,091 7,991,898 -0.1 Customer loans 7,703,157 7,802,119 -1.3 Participations 2,508,323 2,933,975 -14.5 Total assets 9,980,142 9,185,896 8.6 Total assets 13,204,162 12,775,743 3.4 Results Results Net interest income 135,317 141,116 -4.1 Net interest income 131,739 138,717 -5.0 Gross income 318,381 238,144 33.7 Gross income 484,064 630,454 -23.2 Year-end results 38,388 23,633 62.4 Provisions and impairment losses 106,679 78,117 36.6 Operating result 370,994 367,418 1.0 Number of employees and points of sale Profi t attributable to the Group 72,433 136,065 -46.8 No. of employees 1,307 1,362 No. of offi ces 242 262 Solvency ratio and fi nancial strength No. of ATMs 499 516 Core Capital 26.7% 22.7% Non-performing assets 4.11% 3.82% Debt service coverage ratio 81.2% 79.5% Number of employees and points of sale No. of employees 1,509 1,560 No. of offi ces 242 262 No. of ATMs 499 516 KEY FIGURES Banca March Group Banca March, S.A. Thousands of euros Thousands of euros 2011 2010 variation % 2011 2010 variation % Business volume Business volume Shareholder’s equity 3,374,672 3,425,147 -1.5 Shareholder’s equity 760,802 728,439 4.4 Managed assets 10,060,751 9,561,083 5.2 Customer deposits 7,588,360 7,111,635 6.7 Managed loans 7,980,091 7,991,898 -0.1 Customer loans 7,703,157 7,802,119 -1.3 Participations 2,508,323 2,933,975 -14.5 Total assets 9,980,142 9,185,896 8.6 Total assets 13,204,162 12,775,743 3.4 Results Results Net interest income 135,317 141,116 -4.1 Net interest income 131,739 138,717 -5.0 Gross income 318,381 238,144 33.7 Gross income 484,064 630,454 -23.2 Year-end results 38,388 23,633 62.4 Provisions and impairment losses 106,679 78,117 36.6 Operating result 370,994 367,418 1.0 Number of employees and points of sale Profi t attributable to the Group 72,433 136,065 -46.8 No. of employees 1,307 1,362 No. of offi ces 242 262 Solvency ratio and fi nancial strength No. of ATMs 499 516 Core Capital 26.7% 22.7% Non-performing assets 4.11% 3.82% Debt service coverage ratio 81.2% 79.5% Number of employees and points of sale No. of employees 1,509 1,560 No. of offi ces 242 262 No. of ATMs 499 516 KEY FIGURES Banca March Group Banca March, S.A. Thousands of euros Thousands of euros 2011 2010 variation % 2011 2010 variation % Business volume Business volume Shareholder’s equity 3,374,672 3,425,147 -1.5 Shareholder’s equity 760,802 728,439 4.4 Managed assets 10,060,751 9,561,083 5.2 Customer deposits 7,588,360 7,111,635 6.7 Managed loans 7,980,091 7,991,898 -0.1 Customer loans 7,703,157 7,802,119 -1.3 Participations 2,508,323 2,933,975 -14.5 Total assets 9,980,142 9,185,896 8.6 Total assets 13,204,162 12,775,743 3.4 Results Results Net interest income 135,317 141,116 -4.1 Net interest income 131,739 138,717 -5.0 Gross income 318,381 238,144 33.7 Gross income 484,064 630,454 -23.2 Year-end results 38,388 23,633 62.4 Provisions and impairment losses 106,679 78,117 36.6 Operating result 370,994 367,418 1.0 Number of employees and points of sale Profi t attributable to the Group 72,433 136,065 -46.8 No. of employees 1,307 1,362 No. of offi ces 242 262 Solvency ratio and fi nancial strength No. of ATMs 499 516 Core Capital 26.7% 22.7% Non-performing assets 4.11% 3.82% Debt service coverage ratio 81.2% 79.5% Number of employees and points of sale No. of employees 1,509 1,560 No. of offi ces 242 262 No. of ATMs 499 516 2011 ANNUAL REPORT TABLE OF CONTENTS A complete summary of the 2011 Banca March Annual Report is attached in digital format. 02 MESSAGE FROM THE CHAIRMAN 04 BOARD OF DIRECTORS 06 EXECUTIVE COMMITTEE 07 AUDIT COMMITTEE 07 APPOINTMENTS AND REMUNERATION COMMITTEE 07 MANAGEMENT COMMITTEE 07 THE ECONOMY IN 2011 08 01 ECONOMIC AND FINANCIAL REPORT 14 BANCA MARCH GROUP 16 CONSOLIDATED BALANCE SHEET ANALYSIS 20 CUSTOMER DEPOSITS 22 CUSTOMER LOANS 24 CAPITAL MARKETS 26 CAPITAL INSTRUMENTS 27 CONSOLIDATED PROFIT AND LOSS STATEMENT 28 02 MAIN AREAS 32 WEALTH MANAGEMENT 34 COMMERCIAL BANKING 36 CORPORATE BANKING 40 SUBSIDIARY COMPANIES 41 MARCH GESTIÓN 41 MARCH JLT 44 MARCH VIDA 45 03 INVESTMENT ACTIVITY 46 HOLDINGS 48 LISTED COMPANIES 50 50 ACS 51 ACERINOX 51 PROSEGUR 51 INDRA 52 EBRO FOODS 52 CLÍNICA BAVIERA 52 ANTEVENIO NON-LISTED COMPANIES 53 53 MECALUX 53 PEPE JEANS 53 PANASA 54 ROS ROCA 54 FLEX 54 OCIBAR 03 MESSAGE FROM THE CHAIRMAN MESSAGE FROM THE CHAIRMAN The year 2011 was a diffi cult one marked by a This is the disconcerting panorama which number of issues which once again placed the culminated in the political change in Spain global economy in general, and the European where the new government has deepened and Spanish economies in particular, in a essential measures, some of which had highly disconcerting situation. Without a doubt already begun under the previous one, in the problems stemming from the sovereign order to face a recovery still a long way off. debt crisis in the euro zone countries most These included reducing the defi cit, increasing affected have resulted in nervousness and taxes and adopting basic reforms such as uncertainty, sowing doubts about the future of the labor market, the fi nancial system of the European Union and the common and pensions. These necessary measures currency which we had all considered the have the double objective of undertaking the great success of the community project. indispensable and transmitting credibility and confi dence to markets looking at us What began as a problem of the weaker with a magnifying glass. economies – Greece, Portugal, Ireland –, has ended up contaminating other much In this sense, it is essential that we be able to stronger ones, resulting in the fall of the combine the necessary reduction and austerity Italian government and a political change measures with those needed to generate the in Spain, and creating the potential risk of confi dence and economic growth so that they unforeseeable consequences for Europe and can contribute to regaining the speed the the international markets. And once again economy has lost during all of these years. we saw how the European Union has been incapable of providing a worthy political and Within the fi nancial scope, we are witnessing fi nancial solution to end the doubts that are one of the most remarkable processes dragging down two of its biggest countries. of concentration resulting from the risks undertaken during the past years in the In the case of Spain, the situation has been uncontrolled exposure to the property further exacerbated by the combination of development and real estate sectors. This the high level of national and autonomous has meant that within a few short months defi cits, and the lack of confi dence on the a process that reduced the universe of part of international investors as to how these nearly fi fty regional and provincial savings will be reduced. All of this is accentuated institutions to less than a dozen has by drastically high unemployment (more accelerated. And this process is not yet over. than twice that of the community average, particularly among young people), an Consequently, what remains will be a much extremely weak economy and high levels more concentrated fi nancial sector in which of private debt. healthier enterprises will absorb those that are not, and in which the more sound, prudent and well managed ones will achieve better results. 04 ANNUAL REPORT 2011 BANCA MARCH For a fi rm like Banca March all of these Private Banking and Wealth Management As regards Corporación Financiera Alba, elements of prudence, solvency and good in 2011 saw a 14% increase in assets under our group’s investment arm, it continued to management, which form part of our basic management and a 17% rise in the number of diversify its holdings portfolio by increasing our philosophy, take on an extraordinary relevance clients while Corporate Banking experienced presence in Ebro Foods (8.12% of share capital) at moments such as these.