EBA Risk Dashboard shows that capital and liquidity ratios remain robust

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).