CdM | The annualised return on equity of Spanish banks rose to 14.43% in the first quarter, compared to 13.72% in the previous quarter. Furthermore, compared to the first quarter of 2024 (12.28%), the increase was 2.15 percentage points, according to statistics published by the Bank of Spain.
The capital ratios of all credit institutions increased in the first quarter of 2025. The Common Equity Tier 1 (CET1) ratio stood at 13.66%; the Tier 1 ratio at 15.15% and the total capital ratio at 17.73%.
During this period, the total capital ratio of significant institutions stood at 17.33% and that of less significant institutions at 25.28%.
The aggregate leverage ratio, at 5.72% in the first quarter, remained relatively stable compared to 5.73% in the previous quarter. However, it increased from 5.61% in the same quarter of the previous year.The liquidity coverage ratio for all credit institutions decreased to 171.33% from 178.68% in the previous quarter, although it remains well above the regulatory requirement (100%). This decrease in the ratio was due to both the 1.98% decrease in the liquidity buffer (numerator) and the 2.22% increase in net liquidity outflows (denominator).
The ratio of non-performing loans to total credit institutions, excluding cash balances at central banks and other sight deposits at credit institutions, decreased to 2.86% from 2.91% in the previous quarter.
During this period, the ratio of non-performing loans excluding cash balances of significant institutions stood at 3.01% and that of less significant institutions at 2.39%.
The ratio of loans under special monitoring (stage 2) to total loans decreased to 6.05% (compared to 6.29% in the previous quarter). Similarly, it decreased compared to the same quarter of the previous year (6.81%).The cost of risk increased slightly to 0.91% in the first quarter (from 0.89% in the previous quarter).
