European Central Bank Banking Supervision published its supervisory banking statistics for significant institutions for the second quarter of 2025, indicating slightly stronger capital and liquidity positions and a marginal improvement in asset quality, while profitability remained broadly stable. The aggregate Common Equity Tier 1 (CET1) ratio rose to 16.12% (from 16.05% in the previous quarter and 15.81% a year earlier) and the aggregate Tier 1 ratio increased to 17.60%, while the aggregate total capital ratio edged down to 20.24% from 20.29%. CET1 ratios ranged from 13.18% in Spain to 23.71% in Latvia. The non-performing loans (NPL) ratio excluding cash balances and other demand deposits fell to 2.22% from 2.24%, as the stock of NPLs decreased by EUR 2.36 billion (-0.66%) and total loans and advances increased by EUR 57.64 billion (0.36%); household NPLs declined to 2.16%, while the ratio for loans to non-financial corporations was 3.50%, including 4.57% for commercial immovable property collateralised loans and 4.85% for small and medium-sized enterprises. Annualised return on equity was 10.11% (from 9.85%), with country outcomes ranging from 6.97% in France to 17.44% in Lithuania, while the aggregate net interest margin slipped to 1.51% from 1.53%. The liquidity coverage ratio increased to 157.84% from 156.24%, driven mainly by a EUR 55 billion (-1.7%) reduction in net liquidity outflow. The statistics aggregate COREP and FINREP data and quarter-to-quarter movements can reflect changes in the reporting sample, mergers and acquisitions, and reclassifications; the full indicator set and time series are available via the ECB’s banking supervision website and the ECB Data Portal.

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