Profits of Andorran banks grow by 44% in 2023 to reach 163 million

The value of loans and mortgages represents 30% of GDP

Old Andorra (Andorra), April 4 (European Press) –

The group of three Andorran banks – AndBank, MoraBanc and Creand – recorded a 44% increase in profits in 2023, to 163 million euros, due to an increase in interest rates and “the business adapting to the new environment”. .

Client resources managed by Andorran banks also grew by 16%, reaching 74,187 euros, the Associació de Bancs Andorrans (Andorran Banking) reported in a press release issued on Thursday based on the official financial statements, which must be reviewed by auditors and approved by bodies. Administrative.

The Director General of Andorran Banking, Esther Puigcercos, highlighted the “diversification” of the Andorran banking sector, which she considers competitive and ready to face the challenges of the future, and highlighted its impact on the growth and competitiveness of the economy.

The association stressed the “resilience and sustainability” of the entities' business model, whose return on profitability (ROE) reached 10.38% – 281 basis points higher than the previous year -, in line with the average profitability of European entities.

The CET1 solvency ratio of Andorran banks was set at 16.97% as of December 31 – compared to 15.76% in 2023 – higher than those on the continent, and the liquidity ratio at 228.16%.

Bank and country

The non-performing loan ratio reached 2.1% at the end of the year, a “historical minimum”, a downward trend highlighted by Andorran Banking in the context of the increase in the Eurobor rate, which it attributed to the dynamics of the European Central Bank. The country's economy and credit granting policies.

The banks kept the total credit investment figure stable at EUR 5,000 million: they formalized EUR 339 million in real estate loans (down 14% year-on-year) and EUR 707 million in loans (up 5%), amounts representing 10 %. And 21% of Andorran GDP, respectively.

The volume of credit and debit card transactions amounted to 1,678 euros, an increase of 8% over the previous year, representing 49% of GDP.