EBA Risk Dashboard Shows That Capital Ratios Remained Broadly Stable And Liquidity Ratios Declined Slightly

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.

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