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European banking, with room to improve dividend

Banks distributed 81 billion and forecasts indicate they will continue to rise, but at a slower pace, according to a Morninstar DBRS report.

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European banking, with room to improve dividend

European banks have distributed a record 81,000 million euros in dividends for 2025, according to a report by Morningstar DBRS. Despite this, the sector maintains a solid solvency position, with a CET1 ratio above 15% and a buffer of around 450 basis points over minimum regulatory requirements. However, Morningstar DBRS warns that the margin of safety is gradually decreasing due to shareholder payments, acquisitions, and increased regulatory requirements.

The firm expects shareholder remuneration to remain high but grow at a slower pace, driven by the banks' ability to generate profits and meet their internal capital targets.

Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.

Read the original at expansion.com →

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