During 2021, the pandemic framework of COVID-19 and its subsequent variants continued to be a huge test for governments and industries around the world, and its effects were naturally extended to Bison Bank as well. Despite the consequent impact on the ability to execute the outlined business plan generate projected revenues, Bison Bank continued to successfully manage its operations, employees, customers and stakeholders.
In 2021 the custodian bank and custody services maintained their growth trajectory, with an increase of €385 million in assets under management to €1365 million at the end of the year. Of note was the depositary bank function for 52 Portuguese investment funds, managed by 17 management companies. In the Custody service, in addition to the activities related to the depositary bank, Bison Bank attracted more than 1,000 international clients, from more than 80 countries, aiming to invest in venture capital funds and private equity funds, under the Portuguese Golden Visa program.
At the same time, Bison Bank has moved more towards establishing its new business to business (B2B) model and has engaged in more than 30 strategic partnerships with institutions around the world, both financial and non-financial, paving the way for increased cross-border customers and business.
From a financial point of view, excluding the impact of -€3.6 million associated with the extraordinary event of the devaluation of a stake in an investment fund, Bison Bank maintained the same level of losses as the previous year (-€7.0 million), with operating income growing by €0.5 million and overheads practically unchanged (+€0.3 million in staff costs and other administrative expenses).
Otherwise, Bison Bank has solid capital and liquidity positions – in December 2021, the Bank achieved a Tier 1 Common Equity ratio of 65.8%, LCR of 152.5% and NSFR of 175.5%.
In order to adapt its current structure to the market needs and to the new strategic bets outlined, Bison Bank has recently started a qualification project that intends to implement a set of strategic adjustments where the creation and development of Bison Digital Assets, the focus on the business-to-business model and the development of international business are included.
To this end, and also with a view to optimizing internal synergies, which may translate into economic and financial efficiency and in the investment in new areas of innovation and development that it did not have until now, Bison Bank began an internal diagnosis of needs, which will involve, in addition to a reorganization of its governance model and organizational macro-structure, a reassessment and retraining of its people and internal procedures, a process that should be completed by the end of the first half of 2022.