EBA Risk Dashboard indicates limited direct impact on EU banks from the Russian invasion of Ukraine but also points to clear medium-term risks

• First-round risks stemming from the Russian invasion of Ukraine are not a fundamental threat to the stability of the EU banking system, but second-round effects may be more material
• EU bank capital and liquidity ratios remained strong
• Profitability stabilised at higher levels than in the pre-pandemic period
• Non-performing loan (NPL) ratios declined as asset quality continued to improve
• Cyber and information and communication technology (ICT) related risks remain high

The European Banking Authority (EBA) published today its Risk Dashboard for the fourth quarter (Q4) of 2021. A special feature highlights the potential impact of the Russian invasion of Ukraine on the EU/EEA banking sector. Based on the EBA’s initial assessment, direct exposures to Russia, Belarus and Ukraine are limited, but second-round effects may be more material from a financial stability perspective.

Exposure of EU banks to Russia, Ukraine and Belarus

Main developments of selected risk indicators

Notes to editors

The EBA collects supervisory reporting from all EU banks as part of its EUCLID platform.

The figures included in the Risk Dashboard are based on a sample of 131 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 is reviewed annually to ensure a selection of the largest institutions of the EU and of the EEA, with a minimum of 3 institutions per country to ensure representation of all EU member states. The updated list of banks is available here (it includes those contributing to this Risk Dashboard as well as the updated list for 2022).

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:

Exposure of EU banks to Russia, Ukraine and Belarus

Slide 1: Banks’ direct asset exposures to Russia, Ukraine and Belarus are concentrated in a few countries DOWLOAD DATA (TOTAL EXPOSURES)

Slide 2: More than 80% of the total exposures were loans and advances, mainly towards non-financial corporations DOWLOAD DATA (TOTAL EXPOSURES BREAKDOWN)

Slide 3: Deposits from Russian and Ukrainian counterparties amount to a combined volume of around EUR 82bn DOWLOAD DATA (DEPOSIT)

Slide 4: About 70% of deposit are from Non-financial corporations and Households DOWLOAD DATA (DEPOSIT BREAKDOWN)

Main developments of selected risk indicators

Slide 1: Banks maintain strong capital levels in Q4 2021 DOWLOAD DATA (CET1)

Slide 2: Asset quality improved with banks reporting a lower NPL ratio of 2.0% DOWLOAD DATA (NPL)

Slide 3: Profitability stabilised at levels higher than in the pre-pandemic period DOWLOAD DATA (PROFITABILITY)

Slide 4: Banks continue to report abundant liquidity DOWLOAD DATA (LIQUIDITY)

Slide 5: Loans under current non-expired EBA-compliant moratoria decreased further in the last quarter DOWLOAD DATA (TOTAL LOANS - NON-EXPIRED)

Slide 6: Total loans with expired moratoria reached EUR 704bn. Asset quality remains a concern DOWLOAD DATA  (TOTAL LOANS - EXPIRED)

Slide 7: The total volume of loans subject to public guarantee schemes (PGS) stood at EUR 373bn in Q4 DOWLOAD DATA (PGS)