Net profit is expected to reach $408 billion in 2026
Figure 1. Industry net profit of European banks (2020–2026e, $, billion)
Avg. ROE 2020
3.6%
ROA: 0.29%
Avg. ROE 2024
10.7%
ROA: 0.92%
Avg. ROE 2025
10.5%
ROA: 0.87%
Avg. ROE 2026e
10.2–10.5%
ROA: 0.82–0.86%
Large deposit-taking FIs (above $4.2bn assets · 223 banks)
Smaller deposit-taking FIs (below $4.2bn assets · ~1,300–1,400 banks)
Annual growth YoY
Note: Europe has about 5,300 licensed deposit-taking institutions, but only 400–600 are material by assets and earnings. TABInsights tracks 223 banks across 34 countries in detail, each above roughly $4.2 billion in assets, covering about 86%–87% of system assets. Adding the next 280 banks, with assets of $1 billion to $4.2 billion, would lift profit coverage by about 8–9%. The remaining 1,000–1,400 sub-$1 billion institutions account for only 3–4% of assets, and likely less of profits because of weak scale economics. Figures are based on 34 European countries excluding Russia, Ukraine, Turkey, Armenia and Georgia.
Source: TABInsights
Source: TABInsights