EU banks report a jump in problem loans to SMEs

Banks reported that non-performing loans rose by 2%, quarter on quarter, equivalent to €7bn.

Banks across the EU have experienced a jump in souring loans to small and medium-sized companies during the first three months of the year, though their profitability held up, the bloc's banking watchdog has said.

The European Banking Authority (EBA) said in its quarterly "risk dashboard" that credit risks have started to materialise with an increase in non-performing loans.