The Bank of Spain published updated Supervisory Statistics of Credit Institutions for the third quarter of 2024, showing higher capital ratios for credit institutions operating in Spain compared with both the previous quarter and a year earlier. The release also shows a year-on-year increase in the leverage ratio and higher annualised return on equity, alongside a lower liquidity coverage ratio that remained well above the 100% regulatory requirement. Aggregate capital ratios rose to 13.34% for common equity tier 1 (CET1), 14.85% for Tier 1 and 17.46% for total capital, with total capital at 17.18% for significant institutions and 22.44% for less significant institutions. The aggregate leverage ratio was 5.62% (down from 5.64% in the previous quarter but up from 5.53% a year earlier). The liquidity coverage ratio declined to 181.36% from 185.64%, reflecting a 2.9% increase in the liquidity buffer versus a 5.4% increase in net liquidity outflows. Asset quality indicators were mixed: the non-performing loan ratio (excluding cash balances at central banks and other demand deposits with credit institutions) edged up to 3.05% from 3.03%, while Stage 2 loans fell to 6.58% from 6.89%; cost of risk decreased to 0.87% from 0.90%. Profitability improved with annualised return on equity rising to 14.09% from 13.81%, and the loan-to-deposit ratio fell to 96.52% from 97.29%. The Bank of Spain noted that these supervisory statistics will continue to be published quarterly in line with its statistics release calendar.

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