Financial reporting of European banks 2026
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Financial reporting of European banks 2026
7 June 2026
As European banks enter 2026 in an environment characterised by persistent economic uncertainty, trade tensions and geopolitical risks, how resilient are their credit risk management practices and provisions for expected credit losses (ECLs)? The 2025 annual results show that banks generally do not yet observe a broad deterioration in credit quality. On the contrary, credit risk indicators such as coverage ratios and additional management overlays continue, on average, to decline, while credit exposures are increasing. At the same time, banks remain vigilant regarding risks arising from global economic developments, including US trade tariffs, geopolitical tensions and sector-specific vulnerabilities.
This report analyses the 2025 annual reports of 26 European banks across 12 countries and provides insight into how they assess and manage expected credit losses in an uncertain economic environment. The study demonstrates how institutions continue to adjust their ECL models, management overlays and forward‑looking economic scenarios in response to changing market conditions. As the ninth edition of this analysis, the research builds on a series launched in 2020 to monitor the evolution of credit risk and the resilience of European banks over time.
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