Banks: Significantly more bad loans on German bank balance sheets

Germany's banks are struggling with the highest increase in non-performing loans in Europe. Almost a quarter (24.9 percent) more non-performing loans (NPLs) were on their balance sheets for 2024 than a year earlier, according to an analysis by the consulting firm Bearingpoint. By comparison, the average NPL increase among the 163 European banks examined was just 1.1 percent. The main reasons for the sharp increase in Germany are "the sharp rise in the number of corporate insolvencies as well as the massive losses in value and rising loan defaults in the commercial real estate sector," Bearingpoint explained.