The Austria Financial Market Authority published its 2024 Annual Report, concluding that Austria’s financial sector remained stable and profitable despite a sluggish economy, while warning that rising insolvencies are eroding banks’ credit quality and that recent interest-rate-driven profits should be used to strengthen capital and fund digital and sustainability investments. The report also frames ongoing regulatory work on crypto-assets, cybersecurity and climate risks as central to supervision. Banks reported consolidated profits of around EUR 11.5 billion (down from EUR 12.6 billion), with the Common Equity Tier 1 capital ratio broadly stable at 17.5%, while non-performing loans increased to 3% from 2.2% and rose in commercial real estate financing to 5% from 3.3%. Insurers maintained an average Solvency Capital Ratio of about 254% and recorded EUR 1.6 billion in result from ordinary activities, despite storm-related losses. Austrian investment funds grew 9.3% to EUR 221 billion with net inflows of EUR 3.1 billion, alongside positive annual performance for pension companies and corporate provision companies. Commercial real estate is identified as a supervisory priority for 2025. The report notes that the European Union’s Markets in Crypto-Assets Regulation and Digital Operational Resilience Act are now fully applicable, with the FMA prioritising consumer and investor protection and anti-money laundering safeguards in crypto-asset service provider licensing, and highlighting DORA’s extension of oversight to critical ICT third-party providers. In sustainable finance, the FMA points to its fundamentally revised cross-sector guide on managing climate and sustainability risks (published in March after consultation) and makes implementation of the European Securities and Markets Authority guidelines on fund names using sustainability-related terms, applying from May 2025 to all investment funds, a supervisory focus for 2025.

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