Brussels, Belgium. The European Central Bank said total assets held by EU-headquartered credit institutions rose by 1.6 per cent to €33.50 trillion by the end of December 2025. Over the same period, the aggregate non-performing loans ratio for the EU banking system remained stable at 1.97 per cent.
EU banking data
The ECB released its consolidated banking data on Friday, covering 332 banking groups and 2,292 stand-alone credit institutions.
The data also showed an aggregate return on equity of 9.3 per cent and a Common Equity Tier 1 ratio of 16.42 per cent.
Cyprus banking sector
Recent data from the Central Bank of Cyprus showed that banking sector profitability in Cyprus declined by 23.6 per cent in the first quarter of 2026, falling to €202 million from €264 million in March 2025.
The decline was primarily attributed to a reduction in net interest income and losses stemming from foreign exchange differences.
Despite the fall in earnings, total assets in the Cypriot banking sector increased by 0.4 per cent, or €274 million, to €70.23 billion by March 31, 2026.
This increase was driven largely by growth in loans and advances and a rise in debt securities holdings.
Capital and asset quality
The sector’s Common Equity Tier 1 ratio fell by 0.7 percentage points to 25.1 per cent, which the Central Bank of Cyprus said reflected a rise in the total risk exposure amount that offset gains in capital.
Asset quality in the Cypriot market remained stable, with the non-performing loan ratio unchanged at 1.6 per cent in March 2026.
