Financial reporting of European banks: benchmark study 2022

What are the lessons learnt from the Covid-19 impact on ECL of banks in Europe?

We have analysed the 2021 annual reports of 26 banks in 11 European countries to better understand the impact of Covid-19 on their expected credit losses and how it can help banks prepare as they face new challenges as a result of the war in Ukraine. This study is the fourth in its series and follows on our third edition of the report released in September 2021.

A focus on Expected Credit Losses

The study mainly focuses on the ECL-related impacts and covers:

ECL charge impact of YE 2021 on the profit or loss and ECL allowances;
ECL allowances: changes in coverage ratios and allocation between stages;
Post-model adjustments/overlays;
Other topics, incl. Non-Performing loans, green finance disclosures, significant increase in credit risk (SICR)