Overview

• German banks saw non-performing loans rise by 24.9 percent in 2024, the highest increase among 163 European institutions
• Corporate insolvencies reached a seven-year peak of 21,812 firm bankruptcies in 2024 after pandemic support ended
• Commercial real estate losses worsened credit defaults as home office and online shopping reduced demand for office and retail properties
• The sector’s average total capital ratio climbed to 23.5 percent in 2024, and many banks sustained or grew their net profits
• Analysts project that corporate insolvencies will increase further in 2025, maintaining pressure on banks’ asset quality