Financial reporting of European banks: benchmark study 2025
As European banks move into 2025 amid renewed U.S. tariffs and heightened geopolitical tensions, is this calm before the storm? Throughout 2024, we observed a continued reduction in credit risk buffers, despite persistent macroeconomic pressures and geopolitical challenges. As we examine the year-end results of the region’s largest institutions, what do the figures reveal about how they manage expected credit losses (ECLs) in an increasingly unpredictable environment?
This report reviews 2024 year-end disclosures from 26 banks across 12 European countries, offering insights into the effects of financial disruption and global instability on ECL estimates. Now in its ninth edition, the study continues a series launched in 2020 to track the evolving response of European banks to emerging risks.
Key insights on expected credit losses
The analysis centres on ECL developments, with key findings on:
- ECL charge impact of YE 2024 on the profit or loss and ECL allowances
- ECL allowances: changes in coverage ratios and allocation between stages
- Post-model adjustments/overlays
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