The ECB publishes prudential banking statistics for the second quarter of 2022
October 7, 2022
- Aggregate Common Equity Tier 1 ratio stable at 14.96% in the second quarter of 2022 (compared to 14.99% in the previous quarter and 15.60% in the same quarter last year)
- Aggregate annualized return on equity up to 7.62% in the second quarter of 2022 (compared to 6.04% in the first quarter of 2022 and 6.92% in the same quarter last year)
- The overall non-performing loan ratio declined further to 1.85% (or 2.35% excluding cash balances) from 1.95% in the previous quarter (2.51% respectively), while loans showing an increase significant credit risk (stage 2 loans) continued to decline. grow, standing at 9.72% (compared to 9.28% in the previous quarter)
The aggregate capital ratios of significant institutions (i.e. banks that are directly supervised by the ECB) remained stable in the second quarter of 2022. The aggregate Common Equity Tier 1 (CET1) ratio stood at 14.96%, the aggregate Tier 1 ratio was 16.22% and the aggregate total capital ratio was 18.85%. Nationally aggregated CET1 ratios ranged from 12.51% in Spain to 25.64% in Estonia. Across all Single Supervisory Mechanism business model categories, diversified lenders reported the lowest overall CET1 ratio (13.81%) and development/promotional lenders the highest (31.65%).
Capital ratios and their components by reference period
Capital ratios by country for the second quarter of 2022
Capital ratios by business model for the second quarter of 2022
The overall non-performing loan (NPL) ratio, including central bank cash balances and other demand deposits, further declined to 1.85% in the second quarter of 2022. This decline was driven by a further reduction NPL stock to €352 billion (vs. €369 billion in the prior quarter) as well as an increase in total loans and receivables to €19,049 billion (vs. €18,963 billion in the prior quarter) ). The NPL ratio excluding cash balances with central banks and other demand deposits decreased to 2.35% in the second quarter of 2022.
Nationally, the average NPL ratio excluding cash balances (green bars in Chart 5) ranged from 1.00% in Estonia to 8.20% in Cyprus. Across all business model categories, Custodians and Asset Managers reported the lowest overall NPL ratio (0.67%) and Diversified Lenders the highest (3.67%).
Aggregate Phase 2 loans as a percentage of total loans continued to increase in the second quarter of 2022, reaching 9.72% (compared to 9.28% in the previous quarter). The stock of phase 2 loans amounted to 1,399 billion euros (compared to 1,311 billion euros in the previous quarter).
The cost of risk stood at an aggregate level of 0.52% in the second quarter of 2022 (compared to 0.56% in the previous quarter). In significant institutions, the interquartile range narrowed to 0.59 percentage points (compared to 0.65 percentage points in the previous quarter).
Non-performing loans by reference period
Non-performing loan rates by country for the second quarter of 2022
Non-performing loan ratio by business model for the second quarter of 2022
Loans and receivables tested for impairment by reference period
Cost of risk by reference period
Return on equity
The aggregate annualized return on equity increased to 7.62% in the second quarter of 2022 (from 6.04% in the first quarter of 2022). Decreases in impairments and provisions were the main drivers of comprehensive net income (the numerator of return on equity).
Return on equity and composition of net income by reference period
Liquidity and funding
The overall liquidity coverage ratio stood at 164.36% in the second quarter of 2022, compared to 167.46% in the previous quarter. The liquidity buffer and the net liquidity outflow decreased compared to the previous quarter (respectively by 155 billion euros and 34 billion euros).
The overall net stable funding ratio stood at 127.00% in the second quarter of 2022, compared to 128.85% in the previous quarter. This change is explained by a decrease of €501 billion in available stable funding, while there was a relatively smaller decrease of €209 billion in required stable funding.
Liquidity ratio and its components by reference period
Net stable funding ratio and its components by reference period
Loans and advances subject to COVID-19 measures
In the second quarter of 2022, total outstanding loans and advances subject to COVID-19 measures decreased further to €410 billion, compared to €421 billion in the previous quarter. This decrease is due to other loans and advances subject to renegotiation measures related to COVID-19, which fell to 48 billion euros against 55 billion euros in the previous quarter.
Loans and advances subject to COVID-19 measures by reference period
Factors Affecting Changes
Prudential banking statistics are calculated by aggregating data reported by banks reporting COREP (capital adequacy information) and FINREP (financial information) at the relevant time. Therefore, variations from quarter to quarter may be influenced by the following factors:
- changes in the sample of reporting institutions;
- Mergers and Acquisitions;
- reclassifications (eg portfolio movements following the reclassification of certain assets from one accounting portfolio to another).
For media inquiries, please contact Philippe RispalPhone. : +49 69 1344 5482.
- The full set of prudential banking statistics with additional quantitative risk indicators is available on the ECB Banking Supervision website.