BANKING IN EUROPE:

FACTS AND FIGURES 2024

x

The European Banking Federation (EBF) has published Facts & Figures 2024, its annual update on the banking sector in Europe. Building on 2023 data from the European Central Bank (ECB), the statistical publication provides users with a unique perspective on the structure, performance, lending, and deposit trends in European banking alongside a country-by-country overview.

The Banking statistics for 2023 show that the total value of loans outstanding from EU MFIs decreased by 0.37% in 2023 to about €26.8 trillion. Also, total deposits from businesses and households grew by around 1.2% to €17.3 trillion in the EU. Deposits from households rose by 1.4% compared to a year earlier, while business deposits decreased by 0.1%. Data also confirms the upward trend in the total assets held by EU banks, expanding in 2023 for the sixth consecutive year and amounting to €43.6 trillion.  Findings include a slight decrease in reliance on deposits as a source of funding with the share of deposit liabilities over total assets reaching about 57% last year.

While European banks have proven resilient and capable of overcoming unforeseen conditions, the structural transformation of the sector continued in 2023 with the intent of increasing efficiency and enhancing profitability. The total number of credit institutions declined to 5,304 in 2023, representing a 2.9% decrease compared to the previous year and reflecting a significant contraction over the last 15 years. The rationalization is due to the digitalization of banking services as well as the transformation programs by European banks to respond to customers’ evolving banking behaviors and enhance efficiency in processes. This restructuring also impacted branches with the number of banks’ branches falling to about 129,400, a decline of 2.4% compared to a year earlier.

Banking activities continue to significantly contribute to the EU economy. Despite the drop in bank employment, one in every 100 jobs in the EU is still in banking, with the banking sector employing over 2 million people by end-2023.