The volume of non-performing loans (NPLs) held by Spanish banks fell by €879 million at the end of 2025, declining to €33.329 billion, according to the historical series on doubtful loans published monthly by the Bank of Spain.

This level of bad loans is the lowest since June 2008 and is also reflected in the NPL ratio, which closed 2025 at 2.71%—its lowest level since September 2008.

On a year-on-year basis, the stock of unpaid loans fell by €6.03 billion between December 2024 and December 2025.

Meanwhile, the total volume of credit granted stood at €1.22 trillion, down €1.695 billion compared with the previous month and €42.262 billion lower than in December 2024.

By type of institution, the NPL ratio for banks, savings banks and credit cooperatives stood at 2.64% in December, five basis points lower than the previous month and 60 basis points below the level recorded in the same period of 2024.

In absolute terms, these institutions reduced their stock of bad loans by €709 million to €30.951 billion. Compared with December 2024, the figure is around €5.649 billion lower.

Specialised consumer credit institutions saw their NPL ratio close 2025 at 4.89%, down from 5.53% in November and 76 basis points lower than a year earlier.

The volume of doubtful credit at these institutions stood at €2.208 billion at the end of December, €151 million less than in November. Compared with the same month of the previous year, the stock of bad loans declined by around €357 million.

Finally, according to data from the Bank of Spain, loan-loss provisions across all credit institutions totalled €26.956 billion. This represents a decline of €331 million compared with November and a year-on-year decrease of €1.953 billion.

Original Story: Forbes |Author: Forbes/ EP
Edition and translation: Prime Yield