ICO posts profits of €73.8 million in 2014, a 3.5% increase compared to 2013

ICO posts profits of €73.8 million in 2014, a 3.5% increase compared to 2013

 

A total of €21.46 billion were granted through ICO financing facilities, an increase of 55% compared to 2013 and the highest amount granted through these facilities in over 20 years.

ICO management indicators have improved, particularly in the case of the solvency ratio, increasing from 19.76% in 2013 to 23.85% in 2014.

In order to fund the loans, €10.17 billion has been raised on the international financial markets.

Instituto de Crédito Oficial has posted after tax profits of €73.8 million, an increase of 3.5% compared to the €71.2 million of 2013.

The main management indicators for ICO have improved during 2014. Its solvency ratio increased to 23.85% compared to 19.76% in the previous year and the provision coverage ratio increased to 141% compared to 132% in 2013. 

Activity in 2014 Second-floor facilities:

During 2014 ICO granted a total of €21.46 billion in loans, enabling the funding of almost 300,000 investment projects and/or meeting the liquidity needs of SMEs and self-employed persons. The volume of loans granted through the ICO Financing Facilities increased by 54.63% compared to 2013 and was almost twice as much as in 2012.

These figures, both in terms of the volume of loans granted and the number of completed operations, have attained record levels unprecedented in the  more than 20 years since the institution of ICO Financing. 

The main beneficiaries of ICO loans in 2014 have been micro-businesses and the self-employed, being over 62% of total loans. Furthermore, it is worth noting that the majority of operations, 51%, were loans of under €25,000.

Information on ICO financing for 2014 bears testimony to the increasing international activity of Spanish SMEs. Financing facilities for exports and internationalisation experienced the greatest growth and make up a total of 24% of all ICO loans. Specifically, ICO Exportadores-Corto Plazo short-term loans saw a major increase, well over that of other financing facilities.  Almost €4.8 billion were given out in loans of this kind over 2014, an increase of 242% compared to 2013.

The strong performance of ICO Financing Facilities over 2014 is paralleled by the main indicators for the Spanish economy.

ICO Financing Activity 2014

Geographic footprint of granted loans

The Regions where Spanish businesses have most benefited from ICO loans are: Catalonia in first place with €4.24 billion, with 19.76% of the total funding granted by ICO; followed by Madrid with €3.21 billion, 14.98% of the total funding and the Region of Valencia with €2.49 billion, 11.62% of the total.

Below are listed the amounts granted by geographic area.

ICO 2014 Financing Facilities. Geographic distribution

(1) Classed according to the address of the loan holder

Distribution of operations by sector

The classification of ICO financing by sector for 2014 shows that the industrial sector was the major beneficiary of ICO loans, followed by the retail & wholesale sector, with over 50% of the total.

Distribution of operations by sector

Diversifying companies' sources of financing. Non-bank financing

Another major strategic action line for the ICO group over this period was the consolidation of the FOND-ICO Global programme. This venture capital fund launched in late 2013 by Axis, the management company for the ICO group, has a capital of €1.2 billion and is the first Spanish public "fund of funds".

In little over a year €631 million were committed in the first three calls for applications with the approval of 23 funds.  This commitment of €631 million on behalf of FOND-ICO Global means a minimum investment of €1.99 billion for Spanish businesses.  Moreover, this investment will mean the raising of a total of €8.99 billion in funds.

Raising capital for ICO activities

In order to provide lending services, ICO seeks to raise capital on the international financial markets since it does not receive funding from the general state budget.

Over 2014 ICO raised a total of €10.17 billion on the financial markets.  Of the total raised, 54% (€5.48 billion) was obtained from issuing mid to long term bonds on the financial markets. The remaining 46%, €4.68 billion, came from loans from different multilateral bodies with very favourable conditions.  These latter types of loans have increased 100% compared to the previous year.

Over 2014, ICO has made major efforts to diversify its investment base: 80% of the public bond issues went to foreign investors compared to 47% in 2012. This bears testimony to the normalisation of the situation of the financial markets for Spanish bond issuers.