In the first half of 2025, total assets of credit institutions increased by 3.2% from the end of 2024 and totalled EUR 86.8bn.
Total loans and advances (gross amount) decreased by 2.6%, primarily under the influence of highly liquid assets (assets with the central bank and other demand deposits). Strong lending to two most important institutional sectors continued, so loans to non-financial corporations increased by 8.9% and loans to households by 7.3%.
The total amount of non-performing loans and advances (hereinafter referred to as ‘NPLs’) decreased by 0.7% from the end of 2024, with their share in total loans and advances remaining at 2.4%. The share of NPLs in the portfolio of loans to non-financial corporations and households continued to decrease, totalling 4.0% and 3.5%.
The operations of credit institutions in the first half of 2025 generated EUR 795m in profits, 1.4% down from the profits generated in the first half of 2024. Profitability indicators remained at levels similar to those at the end of 2024: the return on assets (ROA) totalled 1.9% and the return on equity (ROE) 16.7%.
The key indicators of banking system capitalisation remained high, with the total capital ratio standing at 23.2% due to the fact that risk exposure grew faster than capital. All credit institutions had total capital ratios in excess of the prescribed minimum of 8%.
Banking system liquidity measured by the liquidity coverage ratio (LCR) was high. At the end of the first half of 2025, all credit institutions met the prescribed minimum liquidity requirement of 100%, with the average LCR standing at 215.6%.