(Finance) – The profitability of banks in Europe has reached a new all-time high at 10.11%in the second quarter of 2024, up from 15.74% in the previous quarter and 15.71% in the second quarter of 2023. This was reported by the ECB Banking Supervision.
According to the latest survey carried out by the Frankfurt institution, the main measure of capital strength – the Common Equity Tier 1 (CET1) ratio – is further strengthened to 15.81%from 15.74% in the previous quarter and from 15.71% in the same period a year ago.
Stable levels of bad loans: the “Non-performing loans” (NPL) rate stands at 2.30% compared to 2.31% in the previous quarter and 2.26% in the second quarter of 2023.
In this context, the ECB reports a “significant increase” in “stage two” risky loans, with the share at 9.45%, down from 9.50% in the first quarter but up from 9.19% a year earlier.