Quarterly Risk Dashboard Q3 2021
Asset quality has further improved, but cyber risk remains a source of concern for EU banksThe EBA published its quarterly Risk Dashboard together with the results of the autumn edition of the Risk Assessment Questionnaire (RAQ). The NPL ratio declined to 2.1% and the stage 2 ratio contracted to 8.7%. Return on equity (RoE) was reported higher than pre-pandemic levels at 7.7%. RAQ results show that around 50% of banks cover their cost of equity (CoE) with more than 70% of banks estimate a CoE range between 8% and 12%. It remains to be seen to what extent the Omicron-related wave of infections will affect asset quality and profitability.
Please find the Risk dashboard Q3 2021 here. Other documents include Risk parameter Annexes (here and here), Interactive Dashboard, RAQ Booklet Autumn 2021 and Statistical Annex.