6 August 2025
Aggregate Common Equity Tier 1 ratio at 16.05% in first quarter of 2025, up from 15.95% in previous quarter and from 15.74% one year agoAggregated annualised return on equity at 9.85% in first quarter of 2025, up from 9.54% in previous quarter and from 9.67% one year ago Aggregate non-performing loans ratio (excluding cash balances) at 2.24%, compared to 2.28% in previous quarter and 2.31% one year agoShare of loans showing significant increase in credit risk (stage 2 loans) at 9.76%, down from 9.93% in previous quarter but up from 9.50% one year agoSupervisory banking statistics also available as interactive reports for first time, providing enhanced user customisation Capital adequacy
In the first quarter of 2025, the aggregate capital ratios of significant institutions (banks supervised directly by the ECB) were up from the previous quarter and compared with the same period last year. The aggregate Common Equity Tier 1 (CET1) ratio stood at 16.05%, the aggregate Tier 1 ratio stood at 17.53% and the aggregate total capital ratio stood at 20.28%. This quarterly development was driven by the increase in the capital amounts (numerators), while the total risk exposure (denominator) remained stable. Across countries, the CET1 ratio ranged from 13.04% in Spain to 24.98% in Lithuania in the first quarter of 2025.
Capital ratios and CET1 amount
(EUR billions)
Source: ECB.
CET1 ratios by country
Source: ECB.
Notes: “SSM” stands for “Single Supervisory Mechanism”. Some countries participating in European banking supervision are not included in this chart, either for confidentiality reasons or because there are no significant institutions at the highest level of consolidation in that country.
The non-performing loans (NPL) ratio excluding cash balances at central banks and other demand deposits stood at 2.24% in the first quarter of 2025. The stock of NPLs (numerator) increased by €1.62 billion (0.46%), while the total amount of loans and advances (denominator) rose by €394.18 billion (2.52%). As a result, the ratio decreased by 4 basis points compared to the previous quarter.
At sector level, the NPL ratio for loans to households was 2.21%, stable from 2.23% in the previous quarter and from 2.25% a year ago. Similarly for loans to non-financial corporations (NFCs), the ratio stood at 3.48%, compared with 3.53% in the previous quarter and 3.55% one year ago. Considering the NFC portfolio by segment, the NPL ratio for loans collateralised by commercial immovable property stood at 4.50%, down from 4.62% in the previous quarter and from 4.60% one year ago. The NPL ratio stood at 4.78% for loans to small and medium-sized enterprises, compared with 4.75% in the previous quarter and 4.76% a year ago.
Aggregate stage 2 loans as a share of total loans decreased to 9.76% (from 9.93% in the previous quarter). The ratio for loans to NFCs decreased to 13.81% while the ratio for loans to households remained stable at 9.68% (compared with 13.93% and 9.64% in the previous quarter, respectively).
Non-performing loans
(EUR billions)
Source: ECB.
Note: “cb” stands for cash balances and other demand deposits.
Non-performing loans by counterparty sector
a) Breakdown of NFC portfolio by segment
b) Breakdown of household portfolio by segment
Source: ECB.
Stage 2 loans and advances as a share of total loans and advances subject to impairment review
Source: ECB.
Note: Stage 2 includes assets that have shown a significant increase in credit risk since initial recognition.
Profitability
The aggregated annualised return on equity stood at 9.85% in the first quarter of 2025 compared to 9.54% in the previous quarter and 9.67% one year ago.
While the aggregated net interest margin remained stable during 2024, in the first quarter of 2025 it decreased to 1.53%. Net interest margin across countries ranged from 0.90% in France to 3.37% in Slovenia in the first quarter of 2025.
Return on equity and net interest margin
Source: ECB.
Net interest margins (NIM) by country
Source: ECB.
Notes: “SSM” stands for “Single Supervisory Mechanism”. Some countries participating in European banking supervision are not included in this chart, either for confidentiality reasons or because there are no significant institutions at the highest level of consolidation in that country.
Factors affecting changes
Supervisory banking statistics are calculated by aggregating the data reported by banks which report COREP (capital adequacy information) and FINREP (financial information) data at the relevant point in time. Consequently, changes from one quarter to the next can be influenced by the following factors:
changes in the sample of reporting institutions;mergers and acquisitions;reclassifications (e.g. portfolio shifts as a result of certain assets being reclassified from one accounting portfolio to another).
Several capital and leverage indicators were affected by reporting amendments introduced in the updated Capital Requirements Regulation (CRR III), which came into effect on 1 January 2025. More details on the updated supervisory reporting framework.
For media queries, please contact Benoit Deeg, tel.: +491721683704.
Notes