The Bank of Spain published updated supervisory statistics for credit institutions operating in Spain through the first quarter of 2025. The data show further strengthening in regulatory capital and continued improvement in asset quality, alongside a broadly stable leverage ratio and a lower but still well-above-minimum liquidity coverage ratio. At end-Q1 2025, the aggregate Common Equity Tier 1 ratio stood at 13.66% (13.19% a year earlier), with Tier 1 at 15.15% and total capital at 17.73%. Total capital ratios were 17.33% for significant institutions and 25.28% for less significant institutions. The leverage ratio was 5.72% (5.73% in the prior quarter, 5.61% a year earlier). The liquidity coverage ratio fell to 171.33% from 178.68%, driven by a 1.98% fall in the liquidity buffer and a 2.22% rise in projected net liquidity outflows, and remained above the 100% regulatory requirement. The non-performing loan ratio excluding cash at central banks and other demand deposits eased to 2.86% from 2.91% (3.01% for significant and 2.39% for less significant institutions), while Stage 2 loans fell to 6.05% from 6.29%. Cost of risk edged up to 0.91% from 0.89%, annualised return on equity rose to 14.43% from 13.72%, and the loan-to-deposit ratio increased to 95.53% from 94.56%. The Bank of Spain noted that the receipt of underlying data for the publication closed on 17 July 2025 and that the supervisory statistics will continue to be published quarterly in line with its statistical release calendar.

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