According to the latest European Risk Dashboard from the European Central Bank, the total stock of non-performing loans (NPL) held by Spanish banks has fallen by €7.2 billion over the last year. Despite this positive trend, Spain still has the second-highest volume of non-performing loans in the European Union after France, which has €126.9 billion.

At the end of the third quarter of 2024, Spain’s largest banks had €69 billion of non-performing loans on their balance sheets — €7.2 billion less than the €76.2 billion reported in the same quarter of the previous year — representing a 9.45% reduction over that period.

Compared to the €70.4 billion recorded at the end of June, the quarterly evolution shows a 2% reduction in this indicator.

Reflecting the improving quality of assets held by banks, the NPL ratio has also evolved positively, falling by 0.3 percentage points (pp) from 2.8% in Q3 2024 to 2.5% currently. Compared to the previous quarter (2.6%), the reduction was 0.1 percentage points.