Andorra's Banks Report €176M Profit in 2025, Up 1% with Record Assets and Solvency

Andorra's banking sector recorded aggregate profits of €176 million for 2025, a 1% rise from 2024 according to Andorran Banking, though Altaveu reported a more modest 0.57% increase from €175 million. Creand, Andbank and MoraBanc navigated interest rate normalization, which squeezed financial income but was countered by flexible business models attuned to market changes and client demands.

Client assets under management—covering deposits, investment funds and mandates—rose 21% to €113.248 billion, with deposits increasing 6%. This expansion highlights the financial centre's strength in attracting and holding capital via a balanced mix of commercial and private banking with global operations.

Key indicators remained robust. Return on equity stood at 9.52%, matching Europe's average, while return on assets reached 0.77%, exceeding it. The CET1 solvency ratio ended at 17.16%, slightly above Europe's 16.3%. Liquidity coverage ratio hit 257%, far exceeding the 100% regulatory minimum and Europe's 163% average. The net stable funding ratio rose to 177%, up 8 points from 2024 and ahead of Europe's 126%. Non-performing loans dropped to a record low of 1.5%, below Europe's 1.8%, thanks to cautious credit practices and Andorra's steady economy.

Total lending climbed 10% to €5.561 billion, or 140% of GDP. New financing totalled €1.599 billion, about 40% of GDP, including 1,064 mortgages worth €831 million (up 38%) and €768 million in business and consumer loans (up 20%). These gains stem from easing financial conditions and vigour in property and enterprise sectors. Card payments increased 11% to €1.994 billion, equivalent to 50% of GDP, reflecting solid consumer spending.

Andorran Banking director general Esther Puigcercós emphasised the sector's strong capital buffers and liquidity levels surpassing European benchmarks, enhancing resilience to economic fluctuations. A resilient banking system underpins national competitiveness and economic expansion, she said. The IMF ranks finance as Andorra's fourth-largest sector, praising its diversified approach and ability to weather crises.

Creand posted €63.2 million in net profit, down 10% from 2024—some reports noted 11%—while business volume grew 17% to €38.806 billion. Credit expanded 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 activities contributed €10.6 million to profits, led by Luxembourg (€17.949 billion volume, up 26.95%), Spain (€6.801 billion, up 31.02% with a new Málaga office and bolstered Seu d'Urgell site) and Miami (€1.207 billion). Insurance added €3 million. CEO Xavier Cornella cited business growth, innovation, digital advances and high solvency as 2025 highlights, surpassing 2024-2026 strategic plan goals. Creand secured awards as Andorra's leading digital and private bank, with Fitch affirming its BBB- rating and stable outlook.

All data are provisional as of 31 December 2025, pending final audits.