European Central Bank Banking Supervision has published second-quarter 2026 statistics for significant institutions, showing annualised return on equity rose to 10.73%, its highest level since the series began in 2015. The cost-to-income ratio fell to a series low of 53.06%, as operating income growth outpaced higher administrative expenses and depreciation. Net interest income and net fee and commission income each increased 8% from a year earlier. Capital and asset quality remained broadly stable. The Common Equity Tier 1 ratio edged up to 16.00% from 15.99% in the previous quarter, while the non-performing loans ratio excluding cash balances declined by one basis point to 2.17% as total loans grew faster than non-performing exposures. Stage 2 loans fell to 9.18% of total loans, and the liquidity coverage ratio increased to 154.91% from 153.94%. The ECB also released new system-wide statistics combining significant and less significant institutions across the Single Supervisory Mechanism. The quarterly dataset covers capital, profitability, liquidity and asset quality and will be updated alongside the statistics for less significant institutions.
2026-09-15European Central Bank - Banking Supervision
European Central Bank Banking Supervision reports record 10.73% return on equity and releases system-wide banking statistics
European Central Bank Banking Supervision reported that significant institutions’ annualised return on equity reached a series high of 10.73% in the second quarter of 2026, while the cost-to-income ratio fell to a record low of 53.06%. Capital, asset quality and liquidity metrics remained broadly stable. The ECB also released new quarterly system-wide statistics combining significant and less significant institutions.