The Bank of Spain published updated supervisory statistics for credit institutions operating in Spain through the fourth quarter of 2024, showing further improvements in capital and leverage metrics compared with both the previous quarter and the same period a year earlier. Liquidity coverage declined but remained well above the regulatory minimum, while asset quality indicators improved and profitability stayed elevated despite a modest quarter-on-quarter fall. Common Equity Tier 1 (CET1) rose to 13.51% (from 13.21% in Q4 2023), with Tier 1 at 15.02% and total capital at 17.53%; total capital stood at 17.14% for significant institutions and 24.16% for less significant institutions. The aggregate leverage ratio increased to 5.73% (5.62% in Q3 2024; 5.60% in Q4 2023). The liquidity coverage ratio fell to 178.09% (from 181.36% in Q3 2024) as the liquidity buffer grew by 1.97% while net liquidity outflows increased by 3.84%. The non-performing loan ratio, excluding cash balances at central banks and other overnight deposits at credit institutions, eased to 2.91% (from 3.05% in Q3 2024), and the share of loans under special monitoring (stage 2) declined to 6.29% (6.58% in Q3 2024). Cost of risk edged up to 0.89% (0.87% in Q3 2024), annualised return on equity was 13.71% (14.09% in Q3 2024), and the loan-to-deposit ratio fell to 94.56% (from 96.52% in Q3 2024). The Bank of Spain noted that the underlying data intake for this quarterly update closed on 6 March 2025, and that the supervisory statistics will continue to be published quarterly in line with the official statistical dissemination calendar.

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