Andorra Banks Report €176M Profit in 2025, Up 0.57% with Strong Growth in Assets and Lending

Andorra's banking sector posted aggregate net profits of €176 million for 2025, a 0.57% rise from €175 million in 2024. The figure reflects stability amid interest rate normalization, which squeezed financial margins but was offset by business models responsive to client demands. Client assets under management climbed 21% to €113.248 billion, including 6% deposit growth that highlights the financial center's draw for capital. Sector-wide ROE stood at 9.52%, matching European averages, while ROA reached 0.77%, above the continental benchmark. Solvency metrics outperformed peers: CET1 ratio at 17.16% (European average 16.3%), LCR at 257% (versus 163%), NSFR at 177% (up 8 points from 2024 and exceeding 126%), and non-performing loans at a historic low of 1.5% (below 1.8%). Total credit outstanding hit €5.561 billion, up 10% or 140% of GDP, with €1.599 billion in new lending: 1,064 mortgages totaling €831 million (+38%) and €768 million in business and consumer loans (+20%). Card payments rose 11% to €1.994 billion, equivalent to 50% of GDP.

Creand reported €63.2 million in profit, down 11% from €70.9 million in 2024, yet surpassing targets in its 2024-2026 strategic plan. Business volume expanded 17% to €38.806 billion, with 65% from international units—Luxembourg at €17.949 billion (+27%), Spain at €6.801 billion (+31%, bolstered by new Málaga and Seu d'Urgell offices), and Miami at €1.207 billion. International operations added €10.6 million to earnings, insurance €3 million. Credit grew 6.65% to €2.967 billion, including €2.566 billion from the Andorran parent supporting local firms. Key ratios: CET1 16.84%, overall solvency 18.38%, LCR 161.11%, non-performing loans 2.2%, net equity €692 million. Over five years, profits have doubled via sustainable growth. CEO Xavier Cornella pointed to organic expansion, client asset handling, innovation, digitalization, and strong solvency ahead of 2026 plan completion. Awards included top digital and private bank in Andorra; Fitch affirmed BBB- with stable outlook.

MoraBanc achieved €62.5 million, up 8% for a tenth straight year of gains, with assets under management crossing €20 billion for the first time at €20.141 billion. International arms in Spain (via Banco Europeo de Finanzas acquisition for its license, Tressis, Casa Vicens), Switzerland, and the US contributed €8.1 million (13% of total), up 60%. It topped CET1 at 20.52%, ROTE 18.38%, ROE 14.86% (above sector 9.52%), LCR 298.76%, credit up 14% to €1.726 billion, non-performing loans 2.08%. Nearly €20 million went to tech upgrades, lifting digital services and NPS from 12% to 20%. Staff rose 30% in three years to 584, with renovated headquarters including a Nandu Jubany restaurant. President Joan Maria Nin called results proof of steady growth focused on Spain; CEO Lluís Alsina cited a solid base for prudent expansion.

Andbank delivered €50.6 million, up 10% from €46.4 million—the sector's strongest gain—for a fourth year of double-digit profit rises. Business volume surged 26.3% to €66.150 billion, assets under management 26.8% to €61.969 billion (nearly half the sector total), credit 20.4% to €4.181 billion. Spain dominated at €40.261 billion (+33.9%), Andorra €7.621 billion (+15.7%) with local credit up 23% to €1.272 billion. Subsidiaries added €40 million: Spain €24 million, Andorra €10 million, Monaco €8.5 million, Luxembourg €7 million. New business hit €10.187 billion (+30.6%), portfolio gains €2.894 billion (5.9% average return). Metrics: Tier 1 18.2% (CET1 16.4%), LCR 335%, LTD 46%; own funds up 11% to €810 million. Neobank MyAndbank oversaw €280 million with 4,032 investment clients; 34,000 Andorran clients used digital investing. President Manel Cerqueda Donadeu noted sustained double-digit progress; CEO Carlos Aso praised record inflows, with Q1 2026 at €2.600 billion (mostly Spain). Fitch upheld BBB stable, citing global reach and asset quality. Andbank sold its Brazil license to Creditas (keeping 75% private banking), issued €50 million AT1 and Tier-2 debt in early 2026, and backed cancer research through SJD Pediatric Cancer Center, FERO, and others.

Andorran Banking director general Esther Puigcercós said capital and liquidity above European norms enhance system resilience and competitiveness to back the economy. The IMF views finance as Andorra's fourth-largest sector, praising its balanced commercial-private model and global diversification. Figures are preliminary pending approval. Andorra Telecom separately reported €29.2 million profit for 2025, up from 2024, with domestic revenue €66.6 million (+1.6%) from 5,000 new mobile lines (+5.7%) and 1,169 internet additions (+2.7%); roaming revenue €17.7 million (+0.9%, beating budget), profits to transfer to government.