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The ECB publishes banking supervisory statistics on significant institutions for the first quarter of 2024

June 26, 2024

  • Aggregate Common Equity Tier 1 Capital Ratio of 15.74% in Q1 2024 (down from 15.80% in the previous quarter but up from 15.53% in Q1 2023)
  • Annualized aggregate return on equity of 9.67% in Q1 2024 (vs. 9.31% in Q4 and 9.57% in Q1 2023)
  • The aggregate non-performing loan ratio (excluding cash balances) remains stable at 2.31% (compared to 2.30% in the previous quarter and 2.24% in the first quarter of 2023)
  • Proportion of loans showing a significant increase in credit risk (stage 2 loans) at 9.50% (up from 9.73% last quarter but up from 9.31% a year ago)
  • The year-to-date amounts presented in the results tables are now also available as linear annualised figures in the ECB Data Portal.

Capital adequacy

The aggregate capital ratios of major institutions (i.e. those banks directly supervised by the ECB) remained stable in the first quarter of 2024. The aggregate common equity tier 1 (CET1) ratio stood at 15 .74%, the aggregate level 1 ratio stood at 17.12% and the aggregate total capital ratio stood at 19.81%. The aggregated CET1 ratios at the national level ranged between 12.66% in Spain and 23.63% in Latvia.

Table 1

Capital ratios and their components

(billion euros; percentages)

Source: ECB.

Note: “CET1” means “Common Equity Tier 1”.

Table 2

Capital ratios by country for the first quarter of 2024

(percentages)

Source: ECB.
Notes: “SSM” stands for “Single Supervisory Mechanism” and “CET1” stands for “Common Tier 1 Capital”. 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.

Asset quality

The non-performing loan ratio, excluding central bank cash balances and other demand deposits, remained stable and stood at 2.31% in the first quarter of 2024. The volume of non-performing loans (numerator) increased up to 355,000 million euros and total loans and advances excluding cash balances (denominator) up to 15,344 billion euros (compared to 15,070 billion euros in the fourth quarter of 2023).

In the first quarter of 2024, the proportion of doubtful loans over total loans showed heterogeneous dynamics at the sector level, ranging between 3.55% for loans to non-financial corporations (compared to 3.48% in the fourth quarter of 2023) and 0.64% for loans to other financial institutions (compared to 0.70% in the previous quarter), while the ratio stood at 2.24% for loans to households (compared to 2. 19% from the fourth quarter of 2023).

The cost of risk stood at an aggregate level of 0.50% in the first quarter of 2024 (compared to 0.46% in the previous quarter). Among significant institutions, the interquartile range amounted to 0.49 percentage points (slightly higher than the 0.45 percentage points observed in the previous quarter).

Aggregate stage 2 loans as a percentage of total loans fell to 9.50% (compared to 9.73% in the previous quarter). Among counterparty sectors, the highest levels were observed in loans to non-financial corporations secured by real estate (19.44%) and small and medium-sized enterprises (15.70%), up from 17.65% and 14. .97% respectively in the first quarter of 2023. .

Table 3

Does not make loans

(billion euros; percentages)

Source: ECB.

Table 4

Non-performing loans by counterparty sector

(billion euros; percentages)

Source: ECB.

Note: “NFC” means “non-financial corporations.” “OFC” means “other financial corporations.”

Table 5

Cost of risk

(percentages)

Source: ECB.

Graph 6

Stage 2 loans as a percentage of total loans and advances subject to impairment review

(billion euros; percentages)

Source: ECB.
Note: Stage 2 includes assets that have shown a significant increase in credit risk since initial recognition.

Table 7

Stage 2 loan ratio by counterparty sector

(percentages)

Source: ECB.

Return on equity

Aggregate annualized return on equity stood at 9.67% in the first quarter of 2024 (compared to 9.57% in the first quarter of 2023). A significant increase in operating income (driven by higher net interest income, which increased 8.7% year-on-year) was partially offset by higher equity (driven by reserves which increased 8.9% over last year).

In the first quarter of 2024, the net interest margin increased again to 1.62% (compared to 1.48% a year ago), although it showed notable structural differences between countries. This proportion ranged from 0.87% in France to 3.86% in Latvia.

Table 8

Return on equity and composition of net profits and losses

(billion euros; percentages)

Source: ECB.

Table 9

Net interest margin by country for the first quarter of 2024

(percentages)

Source: ECB.
Notes: “SSM” means “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.

Banking supervisory statistics are calculated by aggregating the data submitted by banks that submit COREP (capital adequacy reporting) and FINREP (financial reporting) data at the relevant time. Consequently, changes from quarter to quarter may be influenced by the following factors:

  • changes in the sample of reporting entities;
  • fusions and acquisitions;
  • reclassifications (for example, portfolio changes as a result of the reclassification of certain assets from one accounting portfolio to another).

For media inquiries, please contact Nicos Keranistel.: +49 172 758 7237.

Grades

  • The full set of supervisory banking statistics with additional quantitative risk indicators is available on the ECB’s banking supervision website and the time series can also be downloaded from the ECB Data Portal.

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