The ongoing decline in NPL volumes in 2022 and pivot towards smaller disposals leave European lenders well positioned to withstand adverse economic conditions.

Declining NPL ratios have put banks in a somewhat more comfortable position than they were this time last year, but the threat of macroeconomic hardship looms over borrowers.

Total NPL volumes across Europe are down and ratios remain stable, with countries such as Italy and Greece having worked especially hard to deal with toxic assets. Even with economic growth set to slow, banks have reason to be broadly optimistic about their NPL levels.

Despite broad economic turmoil, countries across Europe have so far avoided recession. Banks have been able to catch their breath with the NPL market shrinking steadily post-pandemic. But looking forward, Europe is hardly anxiety-free.

We highlight the key UK & European M&A trends in H2 2022 and H1 2023, and provide our insights into the outlook for M&A moving forward.

UK & European Financial Services M&A: Sector trends H2 2022 | H1 2023 — Specialty Finance/Marketplace Lending

UK & European Financial Services M&A: Sector trends H2 2022 | H1 2023 — Consumer Finance

UK & European Financial Services M&A: Sector trends H2 2022 | H1 2023 — Brokers/Corporate Finance

UK & European Financial Services M&A: Sector trends H2 2022 | H1 2023 — Stock Exchanges/Clearing Houses/Trading Venues

UK & European Financial Services M&A: Sector trends H2 2022 | H1 2023 — Payments

UK & European Financial Services M&A: Sector trends H2 2022 | H1 2023 — Asset/Wealth Management

UK & European Financial Services M&A: Sector trends H2 2022 | H1 2023 — Fintech

UK & European Financial Services M&A: Sector trends H2 2022 | H1 2023 — Banks