Non-performing loans to European banks fell further in the fourth quarter of 2021, according to data released today by the European Central Bank.
In particular, the non-performing loans index fell to 2.06% from 2.17% in the previous quarter, with the volume of non-performing loans falling to € 374 billion from € 401 billion in the previous quarter.
At the national level, the average NPLs ranged from 0.58% in Luxembourg to 7.04% in Greece.
At the same time, the common Tier 1 capital adequacy ratio of banks (CET1) remained stable at 15.48% in the fourth quarter of 2021. CET1 nationwide ratios stood at 12.80% in Spain and Greece, up to 25, 91% in Estonia.
Finally, the total annualized return on equity decreased to 6.72% compared to 7.19% in the previous quarter, as announced by the ECB. A year earlier it was at 1.53%.
Source: Capital
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