European Central Bank Banking Supervision published its supervisory banking statistics for significant institutions for the fourth quarter of 2025, showing slightly higher aggregate capital ratios and improved asset quality, alongside a modest decline in profitability and a higher liquidity coverage ratio. The aggregate Common Equity Tier 1 ratio rose to 16.18% (Tier 1: 17.68%; total capital: 20.32%), with country CET1 ratios ranging from 13.29% (Spain) to 22.05% (Latvia). The non-performing loans ratio excluding cash balances and other demand deposits fell to 2.18%, with the NPL stock down by EUR 2.78 billion (-0.78%) and total loans and advances up by EUR 146.92 billion (0.91%); household and non-financial corporation NPL ratios were 2.11% and 3.45% respectively, while stage 2 loans declined to 9.33% of total loans. Annualised return on equity eased to 9.53% (net interest margin: 1.52%), the liquidity coverage ratio increased to 158.60% (supported by a EUR 58 billion reduction in net liquidity outflows), and the loans-to-deposits ratio fell to 100.49%, the second-lowest level since the series began in 2015.
European Central Bank - Banking Supervision 2026-03-18
European Central Bank Banking Supervision releases Q4 2025 supervisory banking statistics with CET1 ratio at 16.18% and non-performing loans at a series-low 2.18%
The European Central Bank Banking Supervision released Q4 2025 supervisory statistics for significant institutions, noting higher aggregate capital ratios and improved asset quality, but a slight decline in profitability. The Common Equity Tier 1 ratio increased to 16.18%, while the non-performing loans ratio decreased to 2.18%. The liquidity coverage ratio rose to 158.60%, with a loans-to-deposits ratio of 100.49%.