Fitch Ratings has revised MoraBanc’s outlook upward, from “stable” to “positive”, while reaffirming its long-term credit rating at “BBB-”. The upgrade is based on MoraBanc’s international growth following the acquisition of the Spanish firm Tressis and on the strong performance of the bank’s business in that market—factors that have driven above-average sector profitability and strengthened the institution’s financial profile.

In its report, the international rating agency stresses that the new positive outlook reflects expectations that MoraBanc will benefit from greater international scale thanks to its expansion plans in Spain after acquiring Tressis. Fitch also points out that MoraBanc’s geographical diversification—with operations in Spain, Miami (USA) and Zurich (Switzerland) in addition to Andorra—has been significantly reinforced by this deal. The agency further expects MoraBanc to maintain a solid financial profile and foresees operating conditions in Andorra and Spain remaining favourable for the bank’s activities.

Higher profitability and a solid financial profile

In its assessment, Fitch highlights that MoraBanc shows profitability levels above those of its peers, supported by a strong domestic franchise and high margins in the Andorran market. The report notes that the bank’s operating profit rose to 4.5 % of risk-weighted assets in 2024 (up from 3.9 % in 2023), reflecting a rebound in fee income on higher business volumes and the release of credit provisions during the year.

The agency also underscores MoraBanc’s financial strength, evidenced by its robust capitalisation—a CET1 ratio of 19.5 % at end-2024—thanks to prudent capital management. It likewise points out that the bank maintains comfortable liquidity levels, with a deposit base that fully funds its loan book. Fitch considers the bank’s asset quality to be good and its risk controls adequate, supported by a low non-performing loan ratio of about 2.3 %.

Lluís Alsina, CEO of MoraBanc

“We welcome Fitch’s outlook upgrade, which recognises our efforts to be the best bank for our clients and how those efforts are reflected in our results. For years, Fitch has identified international growth as a lever for a higher rating, and operations such as the acquisition of Tressis and the strong performance of our subsidiaries are cited in the report as positive milestones that reinforce the robustness of our bank.”

Fitch’s review comes after a record-breaking 2024 for MoraBanc, underscoring the strength of its business model. The bank reached €18.436 billion in assets under management (AUM), a 67 % increase on the previous year. MoraBanc’s profit rose 12 % in 2024, to €57.7 million.