EU Banking Sector Sees Slight Increase in Assets Despite Rising Non-Performing Loans

The European Central Bank (ECB) has released its consolidated banking data for end-March 2026, providing insights into the EU banking sector. The total assets of EU-headquartered credit institutions increased by 3.63%, from €33.13 trillion in March 2025 to €34.33 trillion in March 2026.

The non-performing loans ratio of EU credit institutions also rose, increasing by 0.02 percentage points year on year to stand at 1.98% in March 2026. The ECB's data covers 335 banking groups and 2284 stand-alone credit institutions and non-EU controlled subsidiaries and branches operating in the EU.

The Common Equity Tier 1 ratio of EU credit institutions was 16.27% in March 2026, while their return on equity was 2.44%. The data is based on International Financial Reporting Standards and the European Banking Authority's Implementing Technical Standards on Supervisory Reporting.