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.
Click here for full details.