EBA Updated its Risk Dashboard for 2Q 2017

The risk dashboard shows slight improvement in the capital level of EU banks but nonperforming loans (NPLs) still affect the profitability of banks. In the second quarter of 2017, the common equity tier 1 ratio (CET1 ratio) reached a new peak since the fourth quarter of 2014, increasing from 14.1% in the first quarter of 2017 to 14.3% in the second quarter of 2017, with all EU countries experiencing an average ratio above 10%. However, this outcome was driven by a reduction of the denominator, with banks decreasing their risk exposure amounts (by EUR 195 billion), particularly for credit risk, also in connection with the liquidation or restructuring of some intermediaries. The quality of banks' loan portfolios continued improving, although the slow progress and wider dispersion among countries remained a concern. The NPLs ratio confirmed its downward trend of the previous quarters, decreasing by 30 basis points to 4.5% (Q2 2017) and reaching its lowest level since the fourth quarter of 2014.

Related Links

• Risk Dashboard (PDF)
• Interactive Dashboard (XLSX)
• Risk Parameters Annex (PDF)

Keywords: Europe, EU, Banking, Risk Dashboard, NPLs, CET1, EBA