European Central Bank Banking Supervision published its supervisory banking statistics for significant institutions for the fourth quarter of 2024, showing a modest quarter-on-quarter rise in aggregate capital ratios, broadly stable asset quality, and a fall in profitability from the previous quarter. Funding conditions continued to improve, with the aggregated loan-to-deposit ratio dropping to its lowest level since the time series began in 2015. The aggregate Common Equity Tier 1 (CET1) ratio increased to 15.86% (Tier 1: 17.33%; total capital: 19.99%), with CET1 ratios ranging from 12.88% in Spain to 22.05% in Latvia. The non-performing loans (NPL) ratio excluding cash balances and other demand deposits was 2.28%, reflecting a EUR 4.09 billion decline in the NPL stock alongside a EUR 21.19 billion rise in total loans and advances; stage 2 loans rose to 9.93% of total loans. Annualised return on equity was 9.54%, while the aggregated net interest margin remained stable at 1.60% and ranged from 0.89% in France to 3.54% in Slovenia; the loan-to-deposit ratio fell to 100.43%. The complete dataset, including additional quantitative risk indicators and downloadable time series, is available via the ECB’s banking supervision website and the ECB Data Portal, with quarterly movements potentially affected by sample changes, mergers and acquisitions, and reclassifications in reporting.
European Central Bank - Banking Supervision 2025-03-20
European Central Bank Banking Supervision publishes fourth-quarter 2024 statistics showing slightly higher capital ratios and the lowest loan-to-deposit ratio since 2015
The European Central Bank Banking Supervision reported a modest rise in aggregate capital ratios for significant institutions in Q4 2024, with stable asset quality but decreased profitability. The Common Equity Tier 1 ratio increased to 15.86%, while the loan-to-deposit ratio fell to its lowest since 2015. Non-performing loans declined, and funding conditions improved, despite a rise in stage 2 loans.