Andorra's Banks Post €176M Profit in 2025, Up 1% Amid Strong Asset Growth

Andorra's banking sector ended 2025 with aggregate profits of €176 million, marking a modest 1% increase from 2024 according to Andorran Banking, though one report calculated the rise at 0.57% from €175 million. Creand, Andbank and MoraBanc achieved these results amid interest rate normalization that pressured financial income, offset by adaptable business strategies aligned with market shifts and client needs.

Client assets under management, including deposits, investment funds and mandates, jumped 21% to €113.248 billion, with deposits up 6%. This growth underscores the financial centre's ability to draw and retain capital through a diversified model mixing commercial and private banking with international reach.

Performance metrics stayed strong. Return on equity reached 9.52%, aligning with Europe's average, while return on assets hit 0.77%, topping it. The CET1 solvency ratio closed at 17.16%, edging above Europe's 16.3%. Liquidity coverage ratio stood at 257%, well beyond the 100% minimum and Europe's 163% average. Net stable funding ratio climbed to 177%, an 8-point gain from 2024 and ahead of Europe's 126%. Non-performing loans fell to a historic low of 1.5%, under Europe's 1.8%, due to prudent credit policies and Andorra's stable economy.

Lending grew steadily to €5.561 billion, a 10% increase equating to 140% of GDP. New financing reached €1.599 billion, or roughly 40% of GDP, including 1,064 mortgages totalling €831 million (up 38%) and €768 million in corporate and consumer loans (up 20%). These advances reflect stabilising financial conditions and activity in real estate and business sectors. Card payments rose 11% to €1.994 billion, or 50% of GDP, signalling robust consumer demand.

Andorran Banking director general Esther Puigcercós highlighted the sector's solid capital position and liquidity surpassing European norms, bolstering resilience against economic shifts. A strong banking system supports national competitiveness and growth, she noted. The IMF views finance as Andorra's fourth-largest sector, commending its diversified model and crisis resilience.

Creand reported €63.2 million in net profit, down 10% from 2024—some outlets cited 11%—yet business volume expanded 17% to €38.806 billion. Credit grew 6.65% to €2.967 billion, with CET1 at 16.84%, liquidity coverage at 161.11%, total solvency at 18.38% and non-performing loans at 2.2%. Net equity reached €692 million. International operations added €10.6 million to profits, driven by Luxembourg (€17.949 billion volume, up 26.95%), Spain (€6.801 billion, up 31.02%, supported by a new Málaga office and strengthened Seu d'Urgell presence) and Miami (€1.207 billion). Insurance contributed €3 million. CEO Xavier Cornella pointed to volume expansion, innovation, digitalisation and high solvency as key 2025 achievements, exceeding 2024-2026 strategic plan targets. Creand earned recognition as Andorra's top digital and private bank, with Fitch upholding its BBB- rating and stable outlook.

All figures remain provisional as of 31 December 2025, awaiting final audits.