- EU bank assets rose 4.54% to €32.7 trillion in the year ending June 2024.
- Non-performing loans ratio increased slightly to 1.95%.
- September 2024 saw a decrease in borrowing costs for corporations and households.
Mon Nov 4 14:58:10 – 2024 UTC The European Central Bank (ECB) has released its latest consolidated banking data, revealing a 4.54% growth in total assets of EU-headquartered credit institutions, reaching €32.7 trillion as of June 2024. This growth marks a substantial rise from €31.28 trillion in June 2023. During the same period, the non-performing loans (NPL) ratio across EU credit institutions increased marginally by 0.07 percentage points, reaching 1.95%.
The ECB’s report also highlights that EU banks maintained an aggregate return on equity of 5.10% and a Common Equity Tier 1 (CET1) ratio of 16.26%, reflecting stability in core financial metrics.
Lower Borrowing Costs and Interest Rate Trends
In a separate update on euro area bank interest rate statistics for September 2024, the ECB reported a decline in the composite cost of borrowing. The indicator for new corporate loans dropped by 21 basis points to 4.80%, while household borrowing costs for house purchases fell by 10 basis points to 3.63%, largely influenced by recent interest rate changes.
Interest rates for new deposits also saw minor shifts, with the rate for deposits with agreed maturity from corporations falling 13 basis points to 3.28%, while the rate for households remained steady at 2.98%.
These findings underscore the ECB’s efforts to manage financial stability and facilitate more favorable borrowing conditions amid evolving economic conditions in the euro area.