The results of the Andorran banking sector
Recently, MoraBanc has been the entity that has decided to share the results obtained in advance, defying the deadline set until March 31 for the presentation of the accounts. With advanced and almost complete accounting, the blue entity, with the previous BancSabadell d’Andorra fully integrated, has announced earnings for the year 2023 that approach 51.5 million euros, representing an increase of ‘approximately 30%. This result is favorable compared to the 40 million won during the previous year, in 2022.
Perspectives of outstanding Andorran banks
The sources consulted predict that Andbank, considering that its earnings could reach 40 million, will experience a percentage growth of more than 30%, perhaps reaching 33%. On the other hand, Crèdit Andorrà (Creand) will present the most outstanding results, with a profit that could exceed 60 million euros, representing a 50% increase compared to the 43 million won in 2022 after the full absorption of VallBanc.
As a whole, Andorran banking could experience an increase in profits of around 35%, going from the 113 million obtained in 2022 to a figure that could be between 150 and 160 million euros in the last financial year.
Factors determining the results
This growth scenario takes place in a context of high interest rates, much higher than in previous years, being a key factor in the success of banking entities. This situation is more decisive than the increase in managed deposits or the efficiency measures implemented by the entities to reduce costs and look for new forms of income.
Evolution of earnings in the Andorran banking sector
The earnings of the Andorran banking sector have shown significant variability in recent years. After earnings of 83 million in 2020 due to the Covid crisis, a progressive growth has been observed to reach the estimated 150-160 million by 2023. This positive trend contrasts with the 99 million earned in 2018, marked by a noticeable drop.
