Financial reporting of European banks: benchmark study 2026

Our latest benchmark study analyses the expected credit loss (ECL) levels of 26 large European banking groups, based on their 2025 annual reports published before 1 April 2026. It examines the impact of ECL charges on profitability, movements in ECL allowances and coverage ratios, the allocation of exposures between IFRS 9 stages, the use of post-model adjustments and overlays and the macroeconomic scenarios used in forward-looking information.

Key insights

• The average ECL charge increased by 14% year-on-year while its average share of operating profit before ECL remained broadly stable at 13%.
• Gross credit exposures on amortised cost loans increased by 3%, mainly driven by Stage 1 exposures while ECL allowances decreased by 1.9%.
• The average coverage ratio for amortised cost loans fell to 1.2%, compared with 1.26% in 2024 and 1.57% in 2019.
• Stage 1 coverage ratios decreased across the sample while Stage 2 and Stage 3 coverage ratios increased slightly on average.
• Post-model adjustments and overlays continued to decline, representing 9% of amortised cost loan ECL allowances in 2025, compared with 10% in 2024.
• Banks’ forward-looking scenarios continue to reflect caution, with downside scenarios weighted at or above 20% by most banks in the sample.