Non-performing loan ratio of leading UK banks 2018

Non-performing loans are those that are in default, or are close to being in default. Many standard contract terms specify that loans become non-performing after being in default for 90 days, but this can vary. All of the UK's largest banks had low ratios of non-performing loans.

Non-Performing loan coverage

The non-performing loan coverage ratio looks at a bank's ability to absorb future losses. Banks understand not every loan that they lend will be paid in full, so by predicting the rate of non-performing loans, banks can be prepared to cover these future losses. The higher the coverage ratio, the better prepared a country's banks are for such an outcome. Overall, European banks displayed relatively healthy NPL coverage ratios.