Andbank Investor Presentation September 2017 Table of contents 1. - PowerPoint PPT Presentation

Andbank Investor Presentation September 2017

Table of contents 1. Overview of Andorra 2. Andbank at a glance 3. Latest developments A. Appendix 2

1. Geographic and demographic information Andorra is an independent European co-principality situated in the southern peaks of the Pyrenees Mountains, bounded by France and Spain. The capital is Andorra la Vella Andorra The total population is approximately 70.000 people with strong levels of immigration from Spain , France and Portugal Distribution of the population by nationality in 2015 (1) 7,87% 1,22% 45,83% Andorran 13,71% Spanish 4,99% French Portuguese British Others 26,38% Pas de la Canillo Ordino Casa La Massana Encamp Andorra la Vella Escaldes – Engordany Sant Julià de Lòria 3 (1) Source: Department of Statistics – Government of Andorra

1. Key macroeconomic data 2015 (1) Real GDP growth (%) Public debt to GDP (%) 129.3 3.2 100.6 97.2 1.4 1.1 39.4 0.7 Andorra Spain France Portugal Andorra Spain France Portugal GDP per capita (EUR k) Unemployment rate (%) 22.9 35.8 33.9 23.3 12.5 16.9 10.1 3.9 Andorra Spain France Portugal Andorra Spain France Portugal 1. 1.8% 2016 GDP growth and 2% 2017 YTD. 2. Central Government deficit has improved to -0.6% of GDP in 2016 whilst the General Government public account balance (including municipalities and social security) has shown moderate surpluses . 4 (1) Source: Department of Statistics – Government of Andorra

1. Andorra Fitch Report Fitch Ratings has revised the Outlook on Andorra's Long-term Issuer Default Rating (IDR) to Positive from Stable. The Long-Term IDR is affirmed at 'BBB'. Fitch has also affirmed the Short-Term IDR at 'F3' and the Country Ceiling at 'A- ‘ Long-Term IDR BBB Outlook Positive Short-Term IDR F3 Country ceiling A- Regulatory Banks’ Positive Public Debt Ratio Improvements Resilience Outlook Stabilising Andorra is on track to The banking sector has Pick-up in growth The general government • • • • aligning regulation and shown resilience against forecast: available debt/GDP ratio was information exchange the fallout of the crisis economic data point to 40.5% at end-2016. with European and that led to the moderate growth. Forecast are consistent • international standards liquidation of Banca Stronger-than-expected with the government • by end-2017. Privada d’Andorra (BPA). tax revenues in the debt ratio falling just second half of 2016. below 40% by 2018. 5 (1) Source: FitchRatings – Andorra Full Rating Report (24/02/2017)

1. Fitch forecast summary Real GDP growth (%) Unemployment (%) 2.3% 2.0% 6.1% 5.9% 1.5% 4.6% 1.0% 4.0% 3.9% 3.8% 3.5% 0.4% 0.3% 2012 2013 2014 2015 2016e 2017f 2018f 2012 2013 2014 2015 2016e 2017f 2018f -1.6% Consumer prices (annual average % change) General government debt (% of GDP) 1.8% 41.9% 1.5% 41.4% 1.1% 41.0% 40.6% 40.5% 0.4% 40.2% 0.0% 39.8% 2012 2013 2014 2015 2016e 2017f 2018f -0.1% -0.9% 2012 2013 2014 2015 2016e 2017f 2018f 6 (1) Source: FitchRatings – Andorra Full Rating Report (24/02/2017)

1. Regulatory framework Andorra’s political system is a Parliamentary co -principality (France & Spain) Public institutions Judicial power Legislative power Executive power Supervisory authorities Prudential supervision of • High Council of Justice all entities of the financial General Council Government system High Court of Justice • Manage the process for Executive body to direct • Exercise legislative power the resolution of banking • national and international institutions Approve government budget policies • Criminal Administrative Supervise all entities in • Civil Court Appoint head of Government • • Exercise regulatory power Court Court AML&CTF matters and promote/control his actions Centralize and coordinate • Unitat de Tribunal de all actions regarding anti- Prevenció I Corts corruption Lluita contra la Corrupció (UPLC) Batlles Court Private sector associations • Look after the interests of the financial sector and AAA (1) ADEFI (2) ensure its representation in all relevant forums Additional regulatory standards Subject to evaluation by MONEYVAL • FATCA compliant • Signing of Common Reporting Standards (CRS) on automatic exchange of information. • 7 (1) Associació d’Assegurances d’Andorra (2) Associació d’Entitats Financeres d’Inversió

1. The way to transparency Andorran authorities have implemented regulations leading to automatic exchange of information on financial accounts, and Andorran banks have adopted International Financial Reporting Standards (IFRS) for accounting purposes CRS – Automatic exchange of information Jan’16 Feb’16 Mar’16 Apr’16 May’16 Jun’16 Jul’16 Aug’16 Sept’16 Oct’16 Nov’16 Dec’16 Andorra signed a Bilateral Andorra ratified the Convention on Internal law of implementation of CRS Agreement with the EU mutual administrative assistance in standards ( Llei 19/2016 tax matters and signed the MCAA (1) d’intercanvi automàtic d’informació en matèria fiscal ) UE Countries Other countries Since January 1 st 2017 , the Andorran Austria Estonia Italy Portugal Australia Monaco authorities have implemented regulations Belgium Finland Latvia Romania Feroe Islands Norway that will lead to the automatic Bulgaria France Lithuania Slovakia Gibraltar S. Marino exchange of information on financial Croatia Germany Luxembourg Slovenia Greenland Switzerland accounts between Andorra and the Cyprus Greece Malta Spain Iceland South Africa EU , and the exchange of information Czech Hungary Netherlands Sweden Korea UAE with other countries too Republic Ireland Poland UK Liechtenstein Denmark International Financial Reporting Standards (IFRS) Since January 1 st 2017 , Andorran financial institutions and banks have adopted International Financial Reporting Standards for accounting purposes. 8 (1) Multilateral Competent Authority Agreement

1. Regulatory developments Banking Insurance Key developments in banking regulation : Key developments in insurance regulation currently under discussion within the regulatory authorities: Implementation of MiFID principles in Andorran • regulation New Insurance Regulation Law • Implementation of Basel III principles in Andorran • New Insurance Distribution Law • regulation New Pension Funds Law A new Director has been appointed to lead the • • Andorran Regulator ( INAF ) with prior senior background in the Bank of Spain and Deloitte Intended to incorporate the most recent GAFI / FATF New law on anti-money recommendations and the new rules established by the 4 th EU laundering (1) Directive on AML . Modification of the Criminal In order to include money deriving from tax crime as subject of money laundering offense. Code Modification of the To include Andorran commitment with OECD in relation to spontaneous and on-demand exchange of information . information exchange law 9 (1) Currently under discussion within the regulatory authorities

Table of contents 1. Overview of Andorra 2. Andbank at a glance 3. latest developments A. Appendix 10

2. Our values Discretion Impartiality Long term value creators Third generation Experience in private of family owners banking since 1930 Client-oriented Independence service 11

2. International expansion Merger Banc Agrícol & Banca Reig 2000 2001 2002 2003 2004 2005 2006 2007 Switzerland Bahamas Panamá Investment Banking License International advisor Banking License International expansion strategy 2008 2009 2010 2011 2012 2013 2014 2015 México Uruguay Lux. Monaco Spain Spain Spain Investment Brokerage Firm Banking Banking Luxembourg’s Banking Inversis Israel Advisor (Quest) License License Bank Branch License and Private Wealth and (Columbus) (Monte Paschi) Asset Banking Asset Management Lux. Miami Management Uruguay Brazil Brazil Company Asset Brokerage License (Sigma Representative Banking Asset Management Investment Management Firm Office Miami License License & License (New Miami) House ) (Banco Bracce) Swiss Asset Brokerage Firm BVI Advisors Spain Asset Management portfolio Acquisition of Medivalor Company (Securities Agency) and launch of Medpatrimonia (Joint-venture with Medical Association of Barcelona) 12

2. Andbank worldwide MIAMI LUXEMBOURG SWITZERLAND 12 Countries 7 ANDORRA Banking licenses SPAIN BAHAMAS 5 MEXICO Asset Management Co PANAMA 6 BRAZIL ISRAEL Investment advisors MONACO URUGUAY 1,142 Employees 13

2. Shareholders structure Group executives 1% Cerqueda Family 41.4% (Cerqueda Donadeu, SA – Andosins Capital) 24.2% Minority shareholders 33.4% 74.8% Ribas Duró Family (Reig Finances, SAU – Family owners Reig Patrimonia) 14

2. Governance structure Board of Directors General Management Ricard Tubau CEO Antonio Castro Josep X. Casanovas Santiago Mora Pedro Cardona Jordi Checa Corporate Services Chief Risk Officer Chief Investment Officer Chief IT Officer Chief Resources Officer 15

2. Key figures 2016 (1) 22 BN € BBB AUMs Fitch Ratings (2) 206% Stable LCR Outlook (2) 15.79% 3.47% TIER1 ratio (3) NPL ratio 13.55% 13.20% CET1 (3) ROTE 576 MM € 7.15% Core Capital Leverage ratio 16 (1) Source: Andbank Annual Report 2016 (2) Confirmed in June 2017 (3) Under European regulation (CRR/CRD IV)