The European Banking Authority (EBA) has published its Q4 2024 Risk Dashboard, presenting aggregated supervisory statistics for the largest EU/EEA institutions and indicating broadly stable conditions across profitability, asset quality, capital and liquidity. Profitability improved slightly in 2024, with return on equity at 10.5% and return on assets at 0.73%, while net interest margin edged down 1 basis point quarter-on-quarter to 1.66% and total income was supported by stronger net fee and commission income (up 6.1% quarter-on-quarter and 9.6% year-on-year). Loans to households and non-financial corporations rose by over 1% over the quarter across nearly all jurisdictions, cash balances fell by close to 7%, and sovereign exposures increased to EUR 3.64tn (up more than 3% versus Q2 2024). Asset quality remained stable with non-performing loans down 1.1% quarter-on-quarter to EUR 375bn, although commercial real estate loans saw a marginal increase; Stage 2 loans rose 2.6% to EUR 1.57tn (9.7% of total loans) and the cost of risk was steady at 49 basis points. Liquidity and funding metrics remained well above minimum requirements, with the liquidity coverage ratio at 163.4% and the net stable funding ratio at 127.1%, while the loan-to-deposit ratio declined to 104.9% as deposits from households and non-financial corporations increased by 2.8% over the quarter; the EBA notes Q3 figures were restated due to data resubmissions.

Original source View in tracker