European Central Bank Banking Supervision published its supervisory banking statistics for significant institutions for the third quarter of 2025, showing broadly stable capital and asset quality alongside slightly weaker profitability and liquidity. The aggregate Common Equity Tier 1 (CET1) ratio edged down to 16.10% from 16.12% in the previous quarter, while annualised return on equity declined to 9.88% from 10.11%. The non-performing loans (NPL) ratio (excluding cash balances at central banks and other demand deposits) was unchanged at 2.22%, and the liquidity coverage ratio fell to 156.73% from 157.88%. Capital ratios were mixed, with the aggregate Tier 1 ratio at 17.59% and the aggregate total capital ratio stable at 20.24%; CET1 ratios ranged from 13.28% (Spain) to 23.12% (Lithuania). The NPL stock increased by EUR 1.49 billion (0.42%) while total loans and advances rose by EUR 30.95 billion (0.19%), leaving the ratio unchanged; by sector, NPL ratios were 2.16% for household loans and 3.51% for loans to non-financial corporations, with 4.58% for loans collateralised by commercial immovable property and 4.88% for loans to small and medium-sized enterprises. Stage 2 loans fell to 9.49% of total loans, and the liquidity coverage ratio decline was mainly driven by a EUR 37 billion (+1.15%) increase in net liquidity outflows. The ECB notes that quarter-on-quarter movements can reflect changes in the reporting sample, mergers and acquisitions, and portfolio reclassifications; the full statistical set and time series are available via its banking supervision website and the ECB Data Portal.

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