EBA Risk Dashboard shows that capital ratios remained broadly stable and liquidity ratios declined slightly

06 October 2022

The European Banking Authority (EBA) today published its quarterly Risk Dashboard covering the main risks and vulnerabilities in the EU banking sector.

  • The average CET1 fully loaded ratio remained unchanged at 15%.
  • Overall, banks reported robust liquidity ratios with the average liquidity coverage ratio (LCR) reaching 164.9% and the net stable funding ratio (NSFR) standing at 126.9%.
  • While EU/EEA banks’ NPL ratio kept on declining (from 1.9% to 1.8%), the Stage 2 ratio was again on the rise (from 9.1% to 9.5%).
  • EU/EEA banks’ return on equity (RoE) stood at 7.9% (6.7% in Q1 2022). The rise in profitability was particularly supported by net interest income.

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: The average CET1 ratio (fully loaded) remained stable at 15% DOWLOAD DATA
  • Slide 2: Nearly all its components contributed to the rise in total RWA DOWLOAD DATA
  • Slide 3: NPLs have kept declining, whereas stage 2 loans were again on the rise DOWLOAD DATA
  • Slide 4: Banks have ample liquidity buffers DOWLOAD DATA
  • Slide 5: Rising profitability amid widening net interest margin and despite growing costs DOWLOAD DATA
  • Slide 6: On a YoY comparison, profitability was supported by rising revenues DOWLOAD DATA
  • Slide 7: The YoY increase in net interest income was due to growing asset volumes as well as rising margins DOWLOAD 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).


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Franca Rosa Congiu

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