The Bank of Spain released its supervisory statistics for credit institutions operating in Spain through the second quarter of 2025, reporting improvements across key prudential indicators. The update points to higher solvency and liquidity buffers, better asset quality, and slightly stronger profitability. Common Equity Tier 1 (CET1) rose to 13.75% (from 13.29% in Q2 2024), with Tier 1 at 15.28% and total capital at 17.79%; total capital stood at 17.45% for significant institutions and 24.22% for less significant institutions. The aggregate leverage ratio increased to 5.75% (from 5.72% in the prior quarter and 5.64% a year earlier), while the liquidity coverage ratio rose to 174.82%, remaining well above the 100% regulatory minimum. Asset quality improved, with the non-performing loan (NPL) ratio (excluding cash balances at central banks and other sight deposits at credit institutions) falling to 2.73% (from 2.86% in the prior quarter), and Stage 2 exposures declining to 5.77%; cost of risk eased to 0.81%. Annualised return on equity increased to 14.50%, and the loan-to-deposit ratio rose to 96.38% quarter-on-quarter. The publication updates quarterly data through Q2 2025, with the underlying data collection closing on 8 September 2025, and notes that the supervisory statistics will continue to be published quarterly in line with the official dissemination calendar.
Bank of Spain 2025-10-02
Bank of Spain publishes Q2 2025 supervisory statistics showing stronger capital and liquidity and lower non-performing loan ratios
The Bank of Spain released supervisory statistics for credit institutions through Q2 2025, showing improvements in key prudential indicators. Common Equity Tier 1 (CET1) rose to 13.75%, with a liquidity coverage ratio of 174.82% and a non-performing loan ratio of 2.73%. The annualised return on equity increased to 14.50%, indicating stronger profitability.