caixa

Catalonia has established a reputation as a global centre of scientific excellence, pioneering research and innovative ideas. This corner of Europe, with just 0.1% of the world’s population, accounts for nearly 1% of global scientific production. The Catalan Research system, formed of 12 internationally esteemed universities, over 60 research centres, 15 world class hospitals, and almost 9,000 innovative companies, attests to the Catalonia's ambitions in science. This territory is also a magnet of international funding: with 1.5% of Europe’s population, it receives 2.2% of European competitive funds and 3.5% of European Research Council (ERC) grants. There can be no doubt that Catalonia is now a benchmark in Southern Europe, producing frontier research and punching considerably above its weight in terms of scientific contribution.  It is attracting worldwide talent and projects, and many consider it to be fast becoming the Palo Alto of biomedical research.

BBVA will pay €1.187 billion to the Fund for Orderly Bank Restructuring (FROB) for the nationalised Catalan bank, beating the other two offers in the final phase of the auction process presented by Santander and Barcelona-based CaixaBank. This means that Spanish taxpayers will lose €11.84 billion considering guarantees and due to the fact that the Spanish Government injected €12.622 billion into Catalunya Banc since it was nationalised in 2011. Catalunya Banc was a private bank owned by CatalunyaCaixa, the merger of three historical Catalan savings banks (Catalunya, Tarragona and Manresa). It could not face the deep restructuring process required to meet the new banking regulations. The bank had a weak financial position resulting from a high exposition to toxic real estate and mortgages assets, as well as suffering from poor management. The BBVA will become the second largest bank operating in Catalonia, doubling its past position.

Barcelona-based Criteria CaixaHolding becomes the second largest shareholder of Suez Environnement after signing a binding agreement with the French-based utility company for the sale of Criteria's 24.14% stake in Agbar (Sociedad General de Aguas de Barcelona, S.A.) in exchange for 22 million newly issued Suez Environnement shares. These shares represent 4.1% of Suez's share capital and €299 million in cash. As part of the agreement, Criteria stated its intention to allocate part of the money received from the purchase of Suez Environnement shares in the stock market, aiming to achieve, depending on market conditions, a 7% stake in Suez Environnement, a company which currently controls 75.35% of Agbar.

On the 16^th July Barcelona art centre Caixaforumopened its last major exhibition of the season entitled ´Beauty captivates. Little treasures from the Museo del Prado´. The exhibition contains 135 small canvases from the great artists within Madrid´s museum collection such as Velázquez, El Greco, Rubens, Goya and Tiziano. It will run for almost six months, until the 5^th of January 2015. The exhibition will enable visitors to contemplate the virtuosity of great masters of painting from the 14^th to the 19^th century dealing with small-scale works. It is the second largest collection of works that a host museumhas exhibited from the Museo del Prado, one of Europe's largest art collections.

Barcelona's Sagrada Familía Basilica and Museum and Figueres' Salvador Dalí Theatre-Museum topped Catalonia's visitor rankings with 3.18 million and 1.58 million respectively.  In total, 21,593,992 people visited Catalonia's museums and collections during last year. FC Barcelona's Museum came in third place with 1.51 million people, followed by the science museum CosmoCaixa (1.25 million) and the temporary exhibitions' centre CaixaForum Barcelona (979,000 people). The last two are owned and managed by the Catalan savings bank La Caixa. The Art-Nouveau buildings designed by Catalan architect Antoni Gaudí La Pedrera and Casa Batlló are also among the highlights, with 973,000 and 796,000 visitors respectively. Barcelona's Picasso Museum (915,000) and the Joan Miró Foundation (911,000) are also among the most popular art centres.

On Tuesday the Barcelona-based bank, which is the largest financial entity within the Spanish market, attracted a strong €2.6 billion demand, 88% of which came from international investors. It was CaixaBank's 10-year mortgage covered bond first issue since 2007, before the financial crisis. The operation will boost the Catalan bank's liquidity position, which stood at €60.762 billion at year-end 2013, 17.9% of its total assets. In addition, it satisfies demand from institutional investors for this product. The issue price was 80 basis points over the mid-swap rate and better than expected thanks to strong investor demand. This means CaixaBank sold the mortgage covered bonds at an interest rate of 2.625%, 67 basis points below the last rate for a similar issue by the Spanish Treasury.

In 2013, the consolidated net profit of VidaCaixa, the insurance branch of Spain’s largest bank CaixaBank, amounted to €420.1 million. The figure represents a 46.2% decrease on the previous year, when it had reached €789.5 million. This decrease is due to the effects of the reinsurance transaction on the company’s ‘vida-risc’ life insurance, which occurred in the last quarter of 2012, bringing in an extra income of €600 million back then. On the other hand, the net recurring profit for 2013 totalled €328.3 million, 3.1% less than the previous year. VidaCaixa has reached 3.6 million customers and exceeded €50 billion of assets under management, both figures amounting to a 14.1% increase on the previous year.

Barcelona-based CaixaBank, Spain’s largest bank, has earned €503 million in 2013, representing a 118 % increase on 2012. The private bank mostly owned by La Caixa has left behind a 4-year-long downward trend in profits which can be traced back to December 2009, towards the start of the economic crisis. This result was successfully reached by trying to maintain a similar provision volume than in 2012, which resulted in consuming €7.5 billion, meaning 4.81 % less than what was spent last year. The integration of Banca Cívica and Banc de València have contributed to a growth of the market share to 27.4 %. The bank’s core capital, which is the main solvency indicator, stood at 12.9% according to Basel II regulations and at 11.7% according to Basel III regulations.

Le Corbusier, one of the key figures of twentieth-century architecture, was more than a mere creator of buildings. His ideas on urban planning, furniture design and his innovative blending of architecture within the surrounding landscape are an integral part of his unconventional work. Such different creative facets of the artist are at the core of the exhibition “Le Corbusier. An atlas of modern landscapes”, held at Barcelona’s CaixaForum from the 29^th of January to the 11^th of May. The exhibition, the largest dedicated to the artist in the past 25 years, displays 215 objects from the MoMA and the ‘Fondation Le Corbusier’, which stress the extent of his contribution to international architecture.

Banc Sabadell, the second largest banking company in Catalonia, has ended 2013 with a net profit of €247.8 million, three times more than in 2012, after consuming €1,736.6 million in provisions and allowances for non-payments of loans, impairment of property and other financial operations. Due to the new regulations of the Bank of Spain on credit repayment and the acquisitions of other banking companies, the percentage of delayed or unpaid loans has climbed to 13.63%, 46% more than in 2012. Without the refunding operations, it would have been fixed at 11.13 %. The bank’s core capital, which is the main solvency indicator, stood at 12% and, with the new Basel III, it was set at 10.1%. Jaume Guardiola, CEO of Sabadell, believes that this trend can be the “turning point” of a crisis that was first anticipated when the results for 2012 were announced.

Banc Sabadell has managed to integrate the entire network of Caixa Penedès’ branches in Catalonia and Aragón, as well as all the technological and operational platforms. With this last integration, Banc Sabadell has €170 billion in assets, around 6 million clients and 12% of Spain’s banking branches. This means that the Catalan bank is now the 4^th largest retail financial entity in Spain, after the Barcelona-based CaixaBank, Santander and BBVA. Banc Sabadell bought Caixa Penedès’ banking business in Catalonia and Aragón to Banco Mare Nostrum (BNM) in May. In only 5 months, Banc Sabadell has added 376 branches to its network, along with 545 million client registers and 900,000 clients. In the last year, the Catalan bank has doubled the size of its network, since it also integrated the Caja de Ahorros del Mediterráneo (CAM) network.

The Barcelona-based nationalised Catalunya Banc has reached a first deal with unions on the announced mass lay-off. The deal includes voluntary redundancies instead of early retirements, and the possibility for 401 workers over 50 years old to leave the company. The agreement was reached in the early hours of Wednesday morning, after a long day of talks on Tuesday. Catalunya Banc runs the banking business of the nationalised savings bank CatalunyaCaixa, which will be sold in the coming months after a comprehensive restructuring process. Talks are still ongoing in order to close a definitive deal and the definitive agreement has now to be ratified by the bank’s Board.

In addition, CaixaBank declares that “it will take all the opportunities” to grow in the Spanish market. The Catalan CaixaBank, which is Spain’s main retail bank, has sold €1 billion in 3.5 year bonds, after a market demand of €2.8 billion. In fact, the large demand made the issue price drop from 180 to 170 basic points on ‘midswap’, which is the reference index for this sort of corporate bonds. The issue interest was set at 2.5% and the issue cost represents 18.5 basic points over the Spanish Treasury Debt’s price. The new issue by CaixaBank is part of the bank’s financial plan for 2013, which aims to strengthen CaixaBank’s liquidity, set to reach 64.604 billion by 30^th June.

The Catalan bank was nationalised in 2012 and is going through an important restructuring process before being privatised again. Currently, the financial entity is owned by the FROB (Fund for Orderly Bank Restructuring), which is run by the Bank of Spain and the Spanish Government. The FROB has been delaying the auction to sell CatalunyaBanc and is now proposing to layoff 2,453 workers of the bank and its subsidiaries, according to trade unions. This would represent firing some 34% of its staff. The company is proposing a compensation of 20 days worth of salary per year worked for those it plans to layoff, following the labour market reform, with a maximum of the equivalent to 12 months salary being given. CatalunyaBanc ended the first half of 2013 with a net profit of €183 million, after having transferred part of its real estate toxic assets to the so-called “bad bank” SAREB.

The solvency ratio stood at 10.21% of the bank’s total resources, with 9.77% of core capital. Barcelona-based CatalunyaCaixa closed the first half of 2013 with a net profit of €183 million, which have met targets to recapitalise the bank. The interest margin reached €264 million, which represents a reduction of 5.9% as a result of a credit transfer to the publicly-owned banking management company Sareb. In spite of this, the reduction is less than the average decline seen in the sector as a whole and it has seen a remarkable growth during the first half of 2012 of 14.8%.