Page 105 - economic report 2021

AGGREGATE - CONSOLIDATED PROFIT AND LOSS ACCOUNTS OF ANDORRAN BANKS
(thousands of euros) Table 12.7

2021 2020* % var. 21/20
Interest income 145,400 149,776 (2.92%)
Interest expenses (38,116) (48,851) (21.98%)
Dividend income 3,727 455 N/A
INTEREST MARGIN 111,012 101,379 9.50%
Commissions earned 439,576 400,447 9.77%
Commissions paid (125,935) (109,203) 15.32%
BASE MARGIN 424,652 392,623 8.16%
Gains or losses on derecognition of financial assets and liabilities 10,482 49,924 (79.00%)
not measured at fair value with changes in income (net)
Profit or loss from entities valued by the equity method - 486 -
Profit or loss from financial transactions 104,168 81,447 27.90%
Profit or loss on assets and liabilities covered under insurance
and reinsurance contracts - - -
Other operating income 29,378 27,432 7.10%
Other operating expenses (15,997) (9,935) 61.01%
Other income and expenses from assets and liabilities 982 899 9.23%
used for insurance or reinsurance contracts
OPERATING PROFIT OR LOSS (NET) 553,665 542,874 1.99%
Administrative expenses (378,427) (362,512) 4.39%
Staff costs (233,507) (221,283) 5.52%
Other general administrative expenses (144,920) (141,230) 2.61%
Amortisation (65,686) (63,963) 2.69%
Provisions funded (net) (24,729) 2,606 N/A 103
Net impairment of financial assets not recognised 11,438 (1,390) N/A
at fair value with changes in profit and loss
Net impairment of investments in joint ventures or associates (47) 140 N/A
Net impairment of non-financial assets (9,551) (20,854) (54.20%)
Negative goodwill recognised in profit or loss 11,794 - -
Share of the profit or loss of investments in subsidiaries, 4,743 3,220 47.32%
joint ventures and associates
Profit or loss from non-current assets and disposal groups classified
as held for sale not admissible as discontinued operations 788 2,546 (69.03%)
PROFIT OR LOSS BEFORE TAX 103,989 102,667 1.29%
Corporate tax (5,683) (15,711) (63.83%)
PROFIT OR LOSS FOR THE YEAR
FROM CONTINUING OPERATIONS 98,306 86,956 13.05%

Profit or loss from discontinued operations (net) 143 (735) N/A
PROFIT/(LOSS) FOR THE YEAR 98,449 86,221 14.18%
Attributable to owners of the parent entity 97,419 83,609 16.52%
Attributable to minority interests 1,030 2,612 (60.57%)
* The f gures for 2020 are given for comparat ve purposes only.
Source: Andorran Banking from the annual reports of banking inst tut ons. The Andorran economy: developments in the main sectors | XII. Services

first half of 2022, especially in tourism. The report also evaluated positively the creation of
international reserves by the Andorran Government and highlighted the importance of achieving
the Association Agreement with the European Union.

Finally, we should add that Moody’s evaluated the Principality of Andorra for the first time on 4
February 2022, with a Baa2 rating and stable outlook.