Andorran Banks Boost Net External Assets 5.6% to €5.3 Billion in Q1 2026

Andorran deposit-taking entities (ASDs), comprising the country's banking sector, raised their net external assets by 5.6% year-on-year in the first quarter of 2026, reaching €5,294.5 million from €5,012 million.

This increase stemmed from a 4.4% expansion in assets with non-residents, to €8,561.8 million from €8,201.5 million, outpacing a 2.4% rise in corresponding liabilities to €3,267.3 million. Assets with other sectors grew 8.7% to €3,991.1 million from €3,671.5 million, with more than 95% tied to the private sector and the remainder to other financial institutions. The Statistics Department noted that such growth signals a boost to spending, investment, and production.

Net assets with the central bank fell 9% to €60.8 million from €66.8 million, while holdings against the central government, local administrations, and non-financial public companies declined 16.3% to €150.5 million from €179.7 million.

The broad money supply (M3) rose 4.6% to €7,420 million from €7,096 million a year earlier. Transferable deposits formed 68.8% of the total and increased 6.7% year-on-year. Other deposits within M3 accounted for 28.3% with a 0.7% gain, while non-equity securities made up 2.8% and dropped 5%.

Statistics Department data, published Thursday, point to an improved external position for the banking sector, alongside money supply growth and enhanced financing capacity compared to the first quarter of 2025. These trends highlight the financial system's ability to channel savings into investment and monitor economic activity.