Banca March Strengthens Growth Prospects

Banca March Strengthens Growth Prospects

Banca March Strengthens Growth Prospects

Spanish private bank Banca March continues to outperform its competitors thanks to its strict risk control policy, exclusive products and value creation for clients.

The unlisted lender emerged as the most solvent bank in Europe in two stress tests carried out by the European Banking Authority in 2011 and 2012.

And this solvency, coupled with its excellent reputation, has allowed it to grow organically over the past few years while its peers have been on the acquisition trail. The exception was its 2013 buyout of Banco Inversis, which supplies stock market services.

So no surprise really that the bank has decided against buying any assets from Banco de Madrid, the Spanish unit of an Andorran lender accused of money laundering.

Spain’s stock market regulator CNMV tested the waters with all the local banks to see if they were interested in Banco de Madrid, after the government said it would not bail out the small lender.

 

STEALING A  MARCH ON ITS RIVALS

Banca March’s private banking business has clocked up growth rates of over 20 percent both in terms of clients and funds under management, even during the crisis.

In 2014, net profit at the bank doubled to nearly 115 million euros, bolstered by an improvement in net interest margins and commissions. Its private banking activity saw volumes rise by nearly 19 percent.

Earlier this year, for the second year in a row, the bank was voted best private bank in Spain by the British publication Global Banking and Finance Review.

Banca March targets high-net-worth individuals with over 300,000 euros to manage and the number of those clients grew by 25 percent last year.

The Bank has stolen a march on local competitors by attracting clients formerly advised by foreign banks forced to leave Spain due to the tough business environment.

 

FAMILY ORIGINS BOOST CLIENT BASE

Banca March is a unique player in Spain’s private banking market, not least because it is the only local bank which has remained faithful to its family origins.

During its nearly 100-year history, Banca March has specialised in managing the assets of family businesses and providing services and financing for family companies.

As a result, it has a stable shareholder structure and offers clients the same investment possibilities as the bank’s owners. This is one sure fire way to achieve client fidelity! And the bank has recently changed its brand to reflect its three key interests: its clients, its shareholders and its employees.

So what does the future hold for the bank? Well as Spain’s economic recovery gathers pace, the outlook for private banking is rosy. New wealth is being created with more public offerings and private investment.

With its excellent track record, Banca March is well positioned to take advantage of this forecast upsurge in its core business.

For information on investment in Spain, contact corporate law firm Argali Abogados.

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