Non-performing loans in Europe - statistics & facts

The term non-performing loans (NPLs) generally refers to loans whose repayment has been past due for a certain period. The conditions and number of days after the first missed payment in which the asset starts being considered an NPL may vary. For example, the European Banking Authority considers a loan an NPL if its repayment has been over 90 days late, or if the borrower is unlikely to pay back. In 2021, the value of NPLs to businesses in the European Economic Area was higher than those to households.

Key indicators of non-performing loans

Sweden had one of the lowest NPL ratios in Europe in 2022, which means that the value of its non-performing loans only represented a small share of its overall loans. Meanwhile, Greece was one of the countries with the highest NPL as well as non-performing exposures (NPE) ratio in Europe that same year. The difference between those indicators is that NPL only refers to loans and advances, while NPE also includes other assets, such as debt securities. As a response to the risk of certain clients not paying that money back, banks set aside some money as provisions for expected credit losses. The coverage ratio of NPLs indicates the value of those provisions as a share of the non-performing loans.

NPLs after the 2007 financial crisis

The impact of the financial crisis that started in 2007 was felt very differently across Europe. While the NPL ratio of Germany, the UK, and the Netherlands remained well under five percent throughout the whole period, that value soared in Italy, reaching 18 percent in 2014 and 2015. Meanwhile, the NPL ratio in Ireland was even higher, and in Greece, it surpassed the 40 percent mark. Nevertheless, the value of non-performing loans and advances in the EU has been decreasing since 2015, and the differences between those countries are significantly smaller.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Published by Statista Research Department, Feb 29, 2024

Key insights

Provisions as a share of non-performing loans in the UK
29.5%
Value of unlikely-to-pay mortgages in Italy
3.25bn EUR
Value of loans with non-performing exposures in the EU
344.1bn EUR
Get more insights

Editor’s Picks Current statistics on this topic

Value of non-performing loans (NPLs) and advances to businesses and households in selected European countries as of September 2022, by type (in billion euros)

Loans & Leasing

Value of non-performing loans in Europe 2022, by country and type

Non-performing loan (NPL) ratio in Belgium, Luxembourg and the Netherlands (Benelux) compared to the European Economic Area from September 2016 to September 2022

Loans & Leasing

NPL ratio in the Benelux region 2016-2022

Provisions as a share of non-performing loans (NPL) in the United Kingdom (UK) from 2008 to 2021

Loans & Leasing

Provisions as share of non-performing loans in the UK 2008-2021

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Further reportsGet the best reports to understand your industry

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Mortgage industry of the United States
Banking industry in Europe
Banking industry in Europe
Mortgages in the United Kingdom (UK)
Mortgages in the United Kingdom (UK)
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Bank loans in the European Union
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