The European Banking Authority published its Q4 2024 Risk Dashboard, providing aggregated supervisory statistics for the largest EU/EEA institutions and indicating a broadly stable banking sector. Profitability remained solid while net interest margin eased, and capital and liquidity ratios stayed well above minimum requirements. EU/EEA banks reported a 2024 return on equity of 10.5% and return on assets of 0.73%. Net interest margin fell by 1 basis point quarter-on-quarter to 1.66%, while total income was supported by net fee and commission income growth of 6.1% quarter-on-quarter and 9.6% year-on-year. Loans to households and non-financial corporations increased by over 1% quarter-on-quarter across nearly all jurisdictions, cash balances fell by close to 7%, and sovereign exposures rose to EUR 3.64tn. Asset quality remained stable with non-performing loans down 1.1% quarter-on-quarter to EUR 375bn, although commercial real estate NPLs increased marginally; stage 2 loans rose 2.6% to EUR 1.57tn (9.7% of total loans) and cost of risk held at 49 basis points. The fully loaded common equity tier 1 ratio was steady at 16.0% as risk-weighted assets increased by close to 1.1%, while the liquidity coverage ratio rose to 163.4% and the net stable funding ratio was 127.1%; Q3 figures were restated due to data resubmissions.
European Banking Authority 2025-03-20
European Banking Authority publishes Q4 2024 Risk Dashboard showing EU and EEA banks maintain strong capital and stable asset quality
The European Banking Authority's Q4 2024 Risk Dashboard shows a stable EU/EEA banking sector with solid profitability, despite a slight decline in net interest margin. Key metrics include a return on equity of 10.5%, a return on assets of 0.73%, and a fully loaded common equity tier 1 ratio of 16.0%. Liquidity coverage and net stable funding ratios remained robust at 163.4% and 127.1%, respectively.