EU banking sector assets grow, NPL ratio edges up
The European Central Bank (ECB) has published consolidated banking data for the end of September 2025. Aggregate EU bank assets increased by 0.95 percent to €33.44 trillion, while the non-performing loan ratio rose to 1.97 percent.
Assets expand, NPLs tick higher
The aggregate assets of credit institutions based in the EU increased by 0.95 percent, rising from €33.12 trillion in September 2024 to €33.44 trillion in September 2025. This expansion reflects the overall growth trajectory within the European banking sector.
Simultaneously, the aggregate non-performing loan (NPL) ratio for EU credit institutions experienced a modest rise of 0.01 percentage points year-on-year, reaching 1.97 percent by September 2025. This indicates a slight shift in asset quality.
The aggregate return on equity for EU credit institutions was 7.41 percent in September 2025, based on the first nine months of the year (not annualised).
Additionally, the aggregate Common Equity Tier 1 (CET1) ratio, a key measure of capital adequacy, stood at 16.43 percent.
These consolidated banking data provide a comprehensive overview of the financial health and stability of the EU banking system, covering profitability, asset quality, and capitalisation.
A comprehensive view of EU banking
The European Central Bank (ECB) publishes these Consolidated Banking Data (CBD) quarterly, providing a comprehensive dataset on the EU banking system.
The September 2025 release covers 336 banking groups and 2,289 individual institutions, capturing nearly 100 percent of the EU banking sector's balance sheet volume.
This extensive data includes indicators on profitability, balance sheet structure, liquidity, asset quality, and solvency.
Institutions primarily report under the European Banking Authority's (EBA) Implementing Technical Standards (ITS) based on IFRS, though national accounting principles are also permitted for smaller entities.
These aggregates offer vital information for analyzing the EU banking sector.
Stable foundation, minor shifts
The latest consolidated banking data confirms the overall resilience and strong capitalisation of the EU banking sector.
While the asset growth is positive, the marginal rise in non-performing loans warrants continued vigilance from supervisors.
These figures suggest a stable financial environment, but highlight the need for ongoing monitoring of asset quality trends.