The European Banking Authority’s Q2 2026 Risk Dashboard reports strong capital, liquidity, sound asset quality, and high profitability for EU/EEA banks despite geopolitical and macroeconomic challenges.
The European Banking Authority (EBA) published its Risk Dashboard for the second quarter of 2026, highlighting the resilience of EU/EEA banks amid an uncertain environment. Banks maintain robust capital and liquidity buffers, with a Common Equity Tier 1 ratio of 16.1% and high-quality liquid assets, including sovereign bonds (+8.7% in H1 2026).
Lending continues to grow, with loans to households increasing by 5.2% year-on-year and to non-financial corporations by 6.3%. Asset quality remains strong, with a non-performing loan ratio of 1.8% and Stage 2 loans declining to 8.9%. Exposures to the IT sector are limited at 4% of corporate lending, with no signs of deterioration.
Profitability remains high, with a return on equity of 11.3%, driven by net interest income and widening net interest margins. Cost-to-income ratio improved to 51.5%. Funding conditions are favorable, though geopolitical tensions and rising interest rates pose ongoing risks. Key indicators are visualized in the provided graphs.
More information is available in the full report on the European Banking Authority website.
