Country Banking Sector Report
Country banking sector report: Spain — Q2 2026
Spanish banks earned the highest return on equity among the euro area countries for which the ECB publishes the figure, 16.6% in Q2 2026, as GDP grew 2.6% and the domestic doubtful-loans ratio fell to 2.54%, its lowest since 2008.
Country banking sector report: Italy — Q2 2026
Italian banks earned a 14.9% return on equity in Q2 2026 and cut their NPL ratio to 2.07%, as Intesa Sanpaolo posted a record €5.6 billion half-year profit, but 3% inflation and a higher IRAP rate cloud the outlook as the ECB tightens.
Country banking sector report: France — Q2 2026
French banks posted sharply higher second-quarter profits, with BNP Paribas up 33% to €4.35 billion helped by an exceptional capital gain, yet sector ROE of 7.4% still trails the euro area and corporate NPLs of 3.96% signal pressure from a flat economy.
Country banking sector report: Malaysia — Q2 2026
Malaysian business lending accelerated to 7.2% growth in June 2026 and impaired loans held at 1.43%, but the system CET1 ratio slipped to 13.9% from 14.7% a year earlier as risk-weighted assets outpaced capital.
India Banking Sector Report — Q1 2026
Non-food bank credit grew 14.3% in the year to February 2026, banks' gross NPA ratio was 2.2% and capital adequacy 17.2%, but margins narrowed by 20bp in six months and the RBI held the repo rate at 5.25% in February.
Germany Banking Sector Report — Q4 2025
German significant banks held a 17.38% CET1 ratio in the third quarter of 2025, yet their 6.92% return on equity trailed the euro area aggregate, and banks tightened credit standards for firms by the most since 2023.
Philippines Banking Sector Report — Q4 2025
Bank lending growth slowed to 9.2% in December 2025 as GDP growth fell to 3.0% in Q4 2025. The BSP cut its policy rate to 4.25% in February 2026. Bank capital and liquidity ratios were well above regulatory minimums in June 2025, the latest system data.
Saudi Arabia Banking Sector Report — Q4 2025
Saudi bank credit rose 14.3% year on year to SAR3,262.2bn in Q3 2025, against 7.9% deposit growth. SAMA cut its repo rate to 4.25% in December, and two large lenders ended 2025 with loan books larger than their deposits.
South Africa Banking Sector Report — Q3 2025
Sector return on equity averaged 15.81% and the CET1 ratio 13.22% in 2025 to June, as the Reserve Bank cut the repo rate to 6.75% under a new 3% target. Corporate loans are driving credit growth while household borrowing stays subdued.
Turkey Banking Sector Report — Q3 2025
Sector return on equity rose to 27.6% in the third quarter of 2025 as policy rate cuts from 46% to 39.5% lowered deposit costs, while the NPL ratio reached 2.4% in October and the capital ratio was 18.5%, or 16.6% without forbearance.
Indonesia Banking Sector Report — Q3 2025
Indonesian bank credit grew 7.70% in September 2025 after three BI-Rate cuts to 4.75% and a Rp200tn government cash placement, while deposits grew 11.18%, capital stood at 26.15% and lending rates fell just 15bp between January and September.
Nigeria Banking Sector Report — Q2 2025
The CBN cut its policy rate to 27.00% in September and inflation eased to 18.02%, but profits fell at most of Nigeria's largest banks in the first half as currency gains faded and the exit from regulatory forbearance lifted impairment charges ahead of the 2026 capital deadline.