ECB publishes supervisory banking statistics for the third quarter of 2021

Press release

12 January 2022

ECB publishes supervisory banking statistics for the third quarter of 2021

• Aggregate Common Equity Tier 1 ratio at 15.47% in third quarter of 2021 (down from 15.60% in previous quarter)
• Aggregated annualised return on equity increased to 7.19% (compared with 6.92% in previous quarter, and up from 2.12% one year ago), driven by further decrease in impairments and provisions
• Cost of risk decreased to 0.53% in third quarter of 2021 (compared with 0.57% in previous quarter, and down from 0.67% one year ago)
• Aggregate non-performing loans ratio fell further to 2.17% (down from 2.32% in previous quarter), with stock of non-performing loans declining to €401 billion (down from €423 billion in previous quarter)
• Aggregate loans and advances subject to non-expiredEBA-compliant moratoria declined further to €44 billion (down from €102 billion in previous quarter)

European Central Bank

Directorate General Communications, Global Media Relations Division

Sonnemannstrasse 20, 60314 Frankfurt am Main, Germany

Tel.: [phone], email: [e-mail], website: www.ecb.europa.eu

Reproduction is permitted provided that the source is acknowledged.

Press release / 12 January 2022

ECB publishes supervisory banking statistics for the third quarter of 2021

Capital adequacy

The aggregate capital ratiosof significant institutions (i.e. those banks that are supervised directly by the ECB) decreased slightly in the third quarter of 2021. The aggregate Common Equity Tier 1 (CET1) ratio stood at 15.47%, the aggregate Tier 1 ratio stood at 16.79% and the aggregate total capital ratio stood at 19.30%. Aggregate CET1 ratios at the country level ranged from 12.63% in Greece to 28.55% in Estonia. Across Single Supervisory Mechanism business model categories, diversified lenders reported the lowest aggregate CET1 ratio (13.86%) and development/promotional lenders reported the highest (32.44%).

Chart 1

Capital ratios and their components by reference period

(EUR billions; percentages)

Source: ECB.

Chart 2

Capital ratios by country for the third quarter of 2021

(percentages)

Source: ECB.

Note: Some countries participating in European banking supervision are not included in this chart, either for confidentiality reasons or because there are no significant institutions at the highest level of consolidation in that country.

European Central Bank

Directorate General Communications, Global Media Relations Division

Sonnemannstrasse 20, 60314 Frankfurt am Main, Germany

Tel.: [phone], email: [e-mail], website: www.ecb.europa.eu

Reproduction is permitted provided that the source is acknowledged.

Press release / 12 January 2022

ECB publishes supervisory banking statistics for the third quarter of 2021

Chart 3

Capital ratios by business model for the third quarter of 2021

(percentages)

Source: ECB.

Note: G-SIBs stands for global systemically important banks. "Dev./promotional lenders" stands for Development/promotional lenders.

Asset quality

The aggregate non-performingloans (NPL) ratiodecreased further to 2.17% in the third quarter of 2021, the lowest level recorded since supervisory banking statistics were first published in the second quarter of 2015. As in the previous quarter, this decrease was driven by the combination of a declining stock of NPLs and an increase in the stock of total loans. At the country level, the average NPL ratio ranged from 0.62% in Luxembourg to 10.49% in Greece. Across business model categories, custodians and asset managers reported the lowest aggregate NPL ratio (0.19%) and diversified lenders reported the highest (3.64%).

Chart 4

Non-performing loans by reference period

(EUR billions; percentages)

Source: ECB.

European Central Bank

Directorate General Communications, Global Media Relations Division

Sonnemannstrasse 20, 60314 Frankfurt am Main, Germany

Tel.: [phone], email: [e-mail], website: www.ecb.europa.eu

Reproduction is permitted provided that the source is acknowledged.

Press release / 12 January 2022

ECB publishes supervisory banking statistics for the third quarter of 2021

Chart 5

Non-performing loans ratio by country for the third quarter of 2021

(percentages)

Source: ECB.

Note: Some countries participating in European banking supervision are not included in this chart, either for confidentiality reasons or because there are no significant institutions at the highest level of consolidation in that country.

Chart 6

Non-performing loans ratio by business model for the third quarter of 2021

(percentages)

Source: ECB.

Note: G-SIBs stands for global systemically important banks. "Dev./promotional lenders" stands for Development/promotional lenders.

Return on equity

The aggregated annualised return on equitystood at 7.19% in the third quarter of 2021 (compared with 6.92% in the second quarter, and up from 2.12% one year ago). The generation of operating income remained largely stable (€119 billion in the third quarter of 2021, up from €118 billion in the second quarter), while administrative expenses and depreciation as well as impairments and provisions decreased. Impairments and provisions accounted for -€10 billion of the profit and loss in the third quarter of 2021, the lowest level since the first quarter of 2018.

European Central Bank

Directorate General Communications, Global Media Relations Division

Sonnemannstrasse 20, 60314 Frankfurt am Main, Germany

Tel.: [phone], email: [e-mail], website: www.ecb.europa.eu

Reproduction is permitted provided that the source is acknowledged.

Press release / 12 January 2022

ECB publishes supervisory banking statistics for the third quarter of 2021

The cost of riskdecreased to 0.53% in the third quarter of 2021 (compared with 0.57% in the second quarter, and down from 0.67% one year ago).

Chart 7

Return on equity and composition of net profit and loss by reference period

(EUR billions; percentages)

Source: ECB.

Chart 8

Cost of risk by reference period

(percentages)

Source: ECB.

Funding

The aggregate loan-to-depositratiodecreased to 104.03% in the third quarter of 2021, down from 104.74% in the previous quarter. The third consecutive quarter-to-quarter increase in loans and advances to non-financial corporations and households (+€74 billion compared with the second quarter of 2021) was overcompensated by another increase in their deposits (+€143 billion compared with the second quarter of 2021).

European Central Bank

Directorate General Communications, Global Media Relations Division

Sonnemannstrasse 20, 60314 Frankfurt am Main, Germany

Tel.: [phone], email: [e-mail], website: www.ecb.europa.eu

Reproduction is permitted provided that the source is acknowledged.