12 January 2023
The European Banking Authority (EBA) today published its quarterly Risk Dashboard together with the results of the autumn edition of the Risk Assessment Questionnaire (RAQ).
- Overall, banks maintain robust capital and liquidity ratios.
- The average Common Equity Tier 1 (CET1) ratio declined slightly to 14.8% from 15% in the previous quarter on a fully loaded basis.
- The average Liquidity Coverage Ratio (LCR) reached 162.5% (164.9% in Q2 2022) while the average Net Stable Funding Ratio (NSFR) remained at 126.9%.
- The non-performing loan (NPL) ratio declined slightly to just below 1.8%. However, banks’ asset quality expectations have further deteriorated, notably for SME and consumer finance.
- Average return on equity (RoE) remains stable supported by increases in net interest income
- Banks and analysts remain optimistic about profitability prospects.
- EU Taxonomy used by banks engaged in green lending
Notes to editors
Key indicators have been visualised in a dynamic way. To facilitate the navigation, here is the full list of key indicators that you can find in the graphs:
- Slide 1: Capital ratios remain robust for the majority of banks DOWNLOAD DATA
- Slide 2: Liquidity ratios remain robust DOWNLOAD DATA
- Slide 3: Funding costs are an increasing concern DOWNLOAD DATA
- Slide 4: Deposit rates are expected to increase DOWNLOAD DATA
- Slide 5: Credit risk indicators remain benign DOWNLOAD DATA
- Slide 6: Russia’s invasion of Ukraine and inflation prospects are the main drivers for provisioning overlays DOWNLOAD DATA
- Slide 7: Asset quality expectations have deteriorated according to the RAQ DOWNLOAD DATA
- Slide 8: Profitability reflects higher net interest margins as well as growing costs DOWNLOAD DATA
- Slide 9: RoE trends DOWNLOAD DATA
- Slide 10: Banks and analysts have become more optimistic about profitability prospects DOWNLOAD DATA
- Slide 11: Interest rate fixation period drives bank’s ability to reprice their loans DOWNLOAD DATA
- Slide 12: EU Taxonomy used by banks engaged in green lending DOWNLOAD DATA
- Slide 13: Green bonds are the dominant source of ESG funding DOWNLOAD DATA
The figures included in the Risk Dashboard are based on a sample of 161 banks, covering more than 80% of the EU/EEA banking sector (by total assets), at the highest level of consolidation, while country aggregates also include large subsidiaries (the list of banks can be found here).