Free Trial

MNI BRIEF: EA NPLs Fall, But Still Covid, Cyber Concerns: EBA

(MNI) London

Euro area bank’s non-performing loan ratio has fallen 20bps to 2.1%, the European Banking Authority reported Monday, with household exposures falling from 2.7% to 2.5% compared with Q2 2021 and the ratio loans towards non-financial corporates dropping from 4.4% to 4.2% over the same period. Sectors accommodation and food service continue to have higher NPL levels but have also shown improvement, decreasing by 20bps to 9.5%, and for arts, entertainment, which fell 50bps to 7.7%.

Loans that have benefited from moratoria and public guarantee schemes continue to cause concern, especially given ongoing uncertainty caused by the Covid-19’s Omicron variant. However, bank’s profitability has stabilised at levels above those seen before the pandemic, with the majority of banks expecting operational risks to increase due mainly to elevated cyber risks.

MNI London Bureau | +44 20 3983 7894 |
MNI London Bureau | +44 20 3983 7894 |

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.