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.
2025-03-20European Banking Authority
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.