Gráfica 16: Estimación del efecto de
4.1.4. Alteraciones psicofísicas en
4.1.4.5. Percepción de afección en alteraciones sufridas
The movements in intangible assets and amortisable expenses for last year were as follows (in thousand euros):
Acquisition cost 31.12.10 Additions Retirements Transfers / Other 31.12.11
Consolidation gains — 42,039 — — 42,039
Total — 42,039 — — 42,039
Provision for depreciation
Consolidation gains — –1,463 — — –1,463
Total provision for depreciation — –1,463 — — –1,463
Total consolidation gains — 40,576 — — 40,576
Acquisition cost
Goodwill — — — — —
IT applications 56,396 7,483 –66 — 63,813
Amortisable expenses 15,234 8,217 — — 23,451
Total intangible assets 71,630 15,700 –66 — 87,264
Provision for depreciation
Goodwill — — — — —
IT applications –25,552 -6,929 — — –32,481
Amortisable expenses –4,983 –3,747 — — –8,730
Total provision for depreciation –30,535 –10,676 — — –41,211
Total, net 41,095 5,024 –66 — 46,053
Additions under “Consolidation gains” correspond to the positive differences from the first consolidation resulting from the acquisition of new subsidiaries in Luxembourg (Banque de Patrimoines Privés, SA, 10,973 thousand euros), Spain (Banco Alcalá, SA 7,241 thousand euros) and the United States (Beta Capital Management 23,825 thousand euros) (see note 2.4).
Given its long-lasting nature, and in accordance with that established by the Accounting Plan of the Andorran Financial System and with prior authorisation from the ANIF, the aforementioned Goodwill is amortised over a period of 10 years.
Additions under “Amortisable expenses” correspond mainly to expenses incurred in acquiring new subsidiaries (start-up costs). Pursuant to that established by the Accounting Plan of the Andorran Financial System, these amortisable expenses are amortised over a period of 5 years (see note 3.7).
7.2 Fixed assets
The movements in fixed assets for 2011 were as follows (in thousand euros):
Acquisition cost 31.12.10 Additions Retirements Transfers / Other 31.12.11
Working fixed assets
Land 52,204 — — –538 51,666 Buildings 76,589 3,063 — –1,175 78,477 Installations 67,933 2,217 –989 — 69,161 Furniture 17,403 912 — — 18,315 IT equipment 15,652 3,677 –399 — 18,930 Vehicles 499 146 –18 — 627
Fixed assets in progress — 102 — — 102
Subtotal 230,280 10,117 –1,406 –1,713 237,278
Non-working fixed assets
Land 130,458 1,273 — 538 132,269
Buildings 35,848 9,584 –5,126 1,175 41,481
Art funds 6,492 218 –75 — 6,635
Subtotal 172,798 11,075 –5,201 1,713 180,385
Total fixed assets 403,078 21,192 –6,607 — 417,663
Provision for depreciation Working fixed assets
Buildings –35,908 –3,787 424 481 –38,790 Installations –45,174 –4,917 1,122 — –48,969 Furniture –16,897 –488 — — –17,385 IT equipment –12,365 –2,324 — — –14,689 Vehicles –423 –143 — — –566 Other — — — — — Subtotal –110,767 –11,659 1,546 481 –120,399
Non-working fixed assets
Buildings –6,734 –1,426 313 –481 –8,328
Art funds –75 — 75 — —
Subtotal –6,809 –1,426 388 –481 –8,328
Total provision for depreciation –117,576 –13,085 1,934 — –128,727
Provisions for depreciation –6,750 –707 187 –143 –7,413
Total fixed assets, net 278,752 7,400 –4,486 –143 281,523
At December 31, 2011, the item “Provisions for depreciation” included 6,212 thousand euros corresponding to the depreciation of non-working fixed assets that were revalued in 2008 (6,256 thousand euros at December 31, 2010) (see note 11).
Land and buildings classified as non-working fixed assets are largely made up of acquisitions carried out with the entity’s own funds and, at December 31, 2011 a total of 14,355 thousand euros was granted in rent to third parties (14,712 thousand euros at December 31, 2010).
Of the total additions and retirements of non-working fixed assets, 9,428 thousand euros correspond to property acquired by the bank by a process of repossession or datio in solutum of assets in lieu of payment of debt during 2011 (see note 5.2).
The total retirements of non-working assets, 5,126 thousand euros, correspond to sales of land and property acquired by the bank by a process of repossession or datio in solutum of assets in lieu of payment of debt. At December 31, 2011, all property was fully available.
The fully depreciated fixed assets as at December 31, 2011 totalled 88,881 thousand euros (73,517 thousand euros in 2010).
Provision for risks and contingencies
Movements in provision for risks and contingencies in 2011 and 2010 (in thousand euros) are given below:
2011 Opening Amounts Other Closing
balance Allocation Recoveries applied movements balance
Provision for contingent liabilities 1,525 — –330 — 43 1,238
Other provisions 1,857 — — –554 — 1,303
3,382 — –330 –554 43 2,541
2010 Opening Amounts Other Closing
balance Allocation Recoveries applied movements balance
Provision for contingent liabilities 308 1,191 — — 26 1,525
Other provisions 2,399 107 — –649 — 1,857
2,707 1,298 — –649 26 3,382
“Other provisions” includes the necessary provisions resulting from early retirement commitments as at December 31, 2011 and 2010.
Pension fund and other funds
At December 31, 2011 and 2010, obligations with all Crèdit Andorrà employees and their beneficiaries related to such contingencies as retirement, death and incapacity, are outsourced to a Mutual Fund of benefits and aid for the employees of Crèdit Andorrà (hereinafter “the Fund”), a separate economic asset without legal personality that was set up in September 1962 in order to administrate and manage the financial resources of its members to ensure the payment of benefits established by the Mutual Fund Regulations, approved by the Assembly of Mutual Fund Members at the meeting on December 21, 1999 and revised on October 23, 2006.
Note 8
The management and administration of the Fund is delegated to the Private Company Benefit Foundation of Employees of Crèdit Andorrà (Previfun), whose executive body is its board of trustees.
On October 23, 2006, Crèdit Andorrà SA and the abovementioned foundation established the specific contributions, of a compulsory nature, which both Crèdit Andorrà and the employees themselves would make every year. The group has recorded an expenditure of 2,911 thousand euros under this item in 2011 (2,603 thousand euros in 2010). Voluntary contributions in 2011 to the Employees Fund (Previfun) totalled 500 thousand euros (500 thousand euros in 2010).
Distribution of profits
The proposed distribution of profits of Crèdit Andorrà SA for the year 2011 to be presented by the Board of Directors to the General Shareholders’ Meeting for approval (in thousand euros) is as follows:
2011 2010
Group profits for the year 70,628 77,816
Profits awaiting application — —
Consolidation adjustments:
For dividends 38,181 619
For other (net) 1,880 –3,287
Profit available for distribution from the bank 110,689 75,148
Dividend payments –55,000 –70,000
Transfer to voluntary reserves –55,689 –5,148
Profits awaiting application — —
In 2011 Crèdit Andorrà SA distributed interim dividends from the profits of 2011 totalling 35,000 thousand euros (35,000 thousand euros in 2010).
The profit from the group’s consolidated companies will be distributed in the manner agreed by their respective Shareholders’ Meetings.
Movements in shareholders’ equity
In 2011 and 2010, the following movements (in thousand euros) took place in Shareholders’ Equity:
2011
Share
capital reserveLegal Guarantee reserve Revaluation reserve Voluntary reserve Consolidation reserve Conversion differences Profit Total
Balance at beginning
of year before
distribution 70,000 14,000 33,063 109,306 208,380 39,775 — 42,816 517,340
Supplementary dividend — — — — — — — –35,000 –35,000
Application of 2010
profits / transfer to reserves — — — — 5,148 — — 5,148 —
Consolidation adjustments — — — — — — — –2,668 –2,668 Balance at beginning of year following distribution 70,000 14,000 33,063 109,306 213,528 39,775 — — 479,672 Profits for 2011 — — — — — — — 70,628 70,628 Interim dividend 2011 — — — — — — — –35,000 –35,000 Extraordinary dividend — — — — — — — — — Adjustment guarantee deposit reserves — — 6,248 — –6,248 — — — — Adjustment consolidation reserves — — — — — 947 — — 947 Adjustment revaluation reserves — — — 45 — — — — 45 Adjustment conversion reserves — — — — — — –129 — –129 Total 70,000 14,000 39,311 109,351 207,280 40,722 –129 35,628 516,163 Note 11
2010
Share
capital reserveLegal Guarantee reserve Revaluation reserve Voluntary reserve Consolidation reserve Conversion differences Profit Total
Balance at beginning
of year before
distribution 70,000 14,000 33,063 115,562 273,164 37,466 — 41,655 584,910
Supplementary dividend — — — — — — — –35,000 –35,000
Application of 2009
profits / transfer to reserves — — — — 5,216 — — –5,216 —
Consolidation adjustments — — — — — — — –1,439 –1,439 Balance at beginning of year following distribution 70,000 14,000 33,063 115,562 278,380 37,466 — — 548,471 Profits for 2010 — — — — — — — 77.816 77.816 Interim dividend 2010 — — — — — — — –35.000 –35.000 Extraordinary dividend — — — — –70.000 — — — –70.000
Provision for amortisation — — — –6.256 — — — — –6.256
Consolidation reserves — — — — — 2,309 — — 2,309
Total 70,000 14,000 33,063 109,306 208,380 39,775 — 42,816 517,340
Share capital
Share capital is represented by 790,000 “A” series shares and 210,000 “E” series shares, each of 70 euros, fully subscribed and paid up. Both series have the same economic and policy-making rights, the latter being syndicated. Legal reserve
In compliance with the Act governing companies passed by the General Council on October 18, 2007, a legal reserve must be established of a minimum of 10% of the profit until 20% of the share capital has been reached. At December 31, 2011, the bank had this reserve totally set up.
Guarantee reserve
In accordance with Andorran legislation passed in 1995, at December 31, 2010 Crèdit Andorrà SA had established a restricted guarantee reserve for deposits and other operational obligations of 33,063 thousand euros.
However, at December 31, 2011, Crèdit Andorrà, in compliance with that established by Act 1/2011 on the creation of a deposit guarantee system by banks, had a restricted guarantee reserve totalling 39,311 thousand euros, hedged by an equivalent amount to the public debt issued by the Andorran government (see notes 19.3 and 19.4).
Voluntary reserve
These reserves correspond to profits from previous years that have not been distributed by the General Shareholders’ Meeting.
Pursuant to article 23 of Act 20/2007 of October 18, on public limited companies (“societats anònimes” and “de responsabilitat limitada” in Catalan), the bank has set up a restricted reserve for loans granted to shareholders. In addition, the group also holds, at all times, restricted reserves for an amount equivalent to goodwill and amortisable expenses pending amortisation (see note 7.1).
As shown by the movement in share capital for 2010, on July 28, 2010 the Extraordinary General Shareholders’ Meeting of Crèdit Andorrà SA, on a proposal by the Board of Directors, approved the payment of an extraordinary dividend charged to the reserves totalling 70,000 thousand euros.
Revaluation reserve
This restricted reserve corresponds to two revaluations:
•
The first, totalling 13,934 thousand euros, corresponds to revaluations of buildings for own use of property acquired or built before December 31, 1989.•
The second, totalling 101,628 thousand euros, corresponds to the revaluation authorised by the ANIF on June 12, 2008 of the land, building work and installations of working and non-working fixed assets, as detailed below:Book value before
revaluation Appraised value revaluationPercentage Revaluation
Working land 16,828 53,354 30% 10,958
Working buildings: 14,890 105,351 30% 27,138
Amount building revaluation corresponding to land — — — 6,813
Amount building revaluation corresponding to building — — — 20,325
Non-working land 27,656 89,630 90% 55,777
Non-working buildings: 3,208 11,825 90% 7,755
Amount building revaluation corresponding to land — — — 5,725
Amount building revaluation corresponding to building — — — 2,030
Total 62,582 260,160 — 101,628
At December 31, 2010, the Bank registered a provision of 6,256 thousand euros for the effect of certain non- working fixed assets that have lost their fair realised value since they were revalued, calculated according to updated valuations carried out by independent experts. However, on December 31, 2011, the bank reversed 45 thousand euros of this provision according to updated valuations. Both effects, in line with the applicable accounting practice at the time of revaluation, were carried out against the revaluation reserves.
Consolidation reserves
The consolidation reserves correspond to accrued profits in previous years by group companies forming part of the consolidation perimeter from the date of their acquisition or constitution up to December 31, 2011 that have not been distributed as dividends.
Consolidation reserves 31.12.2011 31.12.2010
Companies consolidated by the fully-integrated method 7,768 10,588
Companies consolidated by the equity method 32,954 29,187
40,722 39,775
The consolidation reserves by the fully-integrated method at December 31, 2011 correspond principally to: 7,830 thousand euros of Crèdit Capital Immobiliari SA (9,585 thousand euros in 2010), 2,236 thousand euros of Crediinvest SA (677 thousand euros in 2010), 1,188 thousand euros of Crèdit Iniciatives SA (938 thousand euros in 2010) and –3,903 thousand euros of the Crèdit Andorrà Panamà group (–1,332 thousand euros in 2010).
The consolidation reserves by the equity method at December 31, 2011 correspond mainly to: 28,113 thousand euros of Crèdit Assegurances SAU (22,973 thousand euros in 2010) and 4,975 thousand euros of ENSISA (6,213 thousand euros in 2010).
Subordinated liabilities
On October 26, 2005, the ANIF Board of Governors agreed to authorise the issue of preference shares by Crèdit Andorrà SA Preference Ltd., to be accounted for as Tier 1 type regulatory capital of the Crèdit Andorrà Group. In accordance with this ANIF authorisation, on December 22, 2005 Crèdit Andorrà Preference Ltd. carried out an issue of 100 million euros in preference shares, without voting rights and with a specified annual dividend of 5% in the first three years following issue and then variable annually with reference to the CMS 10-year rate plus 30 basis points, with a maximum of 8%, adjusted for the number of days during the year when the CMS 10-year rate is equal to or higher than the CMS 2-year rate.
On January 25, 2006, the ANIF Board of Governors agreed to authorise an increase in the preference share issued by Crèdit Andorrà Preference Ltd. amounting to an additional 50 million euros, given that the other components of the equity of Crèdit Andorrà SA continued to account for around 70% of the group’s total shareholder equity. These preference shares are identical in nature to those of the first issue.
Crèdit Andorrà Preference Ltd. is a wholly-owned subsidiary of Crèdit Andorrà and the issue mentioned has the joint and several and irrevocable guarantee of Crèdit Andorrà, as indicated in the corresponding information folder for the issue.
This issue of a perpetual nature was fully taken up by third parties outside the group and may be fully written off should the issuing company so decide, and with authorisation from the ANIF, after a period of six years following it being paid up.
The variable coupon paid in the period between December 23, 2010 and December 22, 2011 was 3.647% (3.698% for the period between December 22, 2009 and December 22, 2010).
In 2011, Fitch Ratings maintained the BBB rating for this preference share issue. Provision for general banking risks
The Group makes provision for general banking risks corresponding to funds allocated by the Bank for reasons of prudence, given the risks inherent in its banking activity.
The movements in 2011 and 2010 were as follows:
2011 2010
Opening balance for the year 23,232 40,855
Allocation to fund — —
Recoveries –15,078 –17,581
Other — –42
Other balance sheet and profit and loss account items
Other significant items in the balance sheet and profit and loss account for the years ended December 31, 2011 and 2010 (in thousand euros) are shown below: