Financial Reporting of European Banks H1 2023

This technical report presents the financial reporting of European banks for the first half of 2023, based on interim reports submitted before September 1, 2023. The report outlines key findings regarding the expected credit loss (ECL) charge and its impact on profit or loss, as well as changes in ECL allowances and coverage ratios. Notably, the average share of ECL charge in operating profit or loss before ECL decreased to 12% in H1 2023 from 22% in H1 2022. The report also details the stability in the weight of cumulative overlays in ECL allowances and the global AC loan coverage ratio, which remained consistent compared to the end of 2022. Additionally, it highlights the varied situations among banks and the absence of major events impacting ECL in H1 2023. The methodology for the study is based on disclosed information from participating banks, ensuring comparability of the data presented.