A much-improved economic performance is largely responsible for a reduction in non-performing loans (NPLs) across the eurozone and, barring any major economic upset, the trend is expected to continue. Meanwhile, eurozone regulators are continuing to press banks to clean up their balance sheets more quickly and to build up capital buffers so they are better positioned to withstand the next downturn.
However, eurozone banks still figure prominently in the list of banks with high levels of NPLs, even though many of the bad debt ratios have improved. Cyprus-based Hellenic Bank – with an NPL to total loan ratio of 44.9% – tops the 2018 NPL ranking with the worst ratio. In second place is South Africa-based African Bank, with an NPL ratio of 42.93%.
