Global bank lending to shipping grew in 2025, marking a clear recovery after years of consolidation, according to the latest annual Petrofin Global Bank Research report. The top 40 banks increased their shipping loan portfolios to $300.6bn at the end of 2025, up 6% from $283.6bn a year earlier.
Key Findings from the Petrofin Report
The Petrofin Global Index of Ship Finance, benchmarked at 100 in 2008 before the financial crisis, rose from 61 in 2024 to 63 in 2025, returning to levels last seen in 2018. Petrofin said the figures point to a recovery trend among banks after a long period in which many lenders either reduced exposure or exited shipping altogether. BNP Paribas remained the largest global ship finance bank, while Petrofin noted that there were no bank departures from the sector in 2025, with “the vast majority of banks” remaining positive towards shipping.
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Top 40 bank loan portfolios | $283.6bn | $300.6bn | +6% |
| Petrofin Global Index | 61 | 63 | +2 pts |
| Fleet & orderbook value | $2.03trn | $2.166trn | +6.7% |
| Clarkson’s Price Index | 176 | 191 | +8.5% |
| Greek bank lending | $18bn | $23.6bn | +31% |
| Scandinavian bank lending | $22.6bn (est.) | $26.2bn | +16.2% |
Regional Breakdown
Europe remains the largest ship finance region, accounting for 50.4% of top 40 bank lending, equal to $151bn. APAC banks reversed their 2024 decline with 8.3% growth, while Japanese banks increased their share of the top 40 portfolios from 22% to 26%. US banks expanded their portfolios by 6.7%.
One of the standout shifts was the return of Greek banks. Petrofin said Greek banks grew their shipping loan books by 37% year-on-year to $23.6bn, up from $18bn in 2024, lifting Greece’s market share to 7.8%. Scandinavian banks also recovered strongly, increasing lending by 16.2% to $26.2bn after an 8% decline the previous year.
Impact of Geopolitical Tensions
The report also shows how geopolitics temporarily reshaped finance flows. Threatened US penalties on Chinese owners, Chinese-linked vessels and vessels entering the US prompted some owners, especially listed companies, to reduce their exposure to Chinese leasing structures and convert leases into bank loans. Citi, ING and other major international banks benefited from the shift, although Chinese leasing resumed once the threat of penalties subsided.
Borrowing Conditions and Sustainable Finance
Borrowing conditions improved. Petrofin said competition pushed loan margins lower, with mid-sized owners able to secure margins of around 1.5% to 1.9% when backed by strong parent guarantees and liquidity. Arrangement fees fell to well below 1%, while loan-to-value ratios remained around 60%.
Sustainability-linked finance continues to grow, though the pace of environmental investment has slowed amid uncertainty over technology and cost. Poseidon Principles banks focused on bilateral lending now hold portfolios of more than $200bn, while Petrofin noted that even some non-signatory banks are using the Poseidon methodology.
Broader Market Context
Petrofin estimates total global bank lending to shipping, including local banks outside the top 40, at around $425bn. Including leasing, export finance and alternative providers, it puts total global ship finance at about $680bn. Against a Clarkson’s-estimated fleet and orderbook value of $2.17trn at the end of 2025, Petrofin concluded that the industry does not appear overleveraged.
The recovery was helped by strong cashflows, rising vessel values and a larger orderbook. The Clarkson’s Price Index rose from 176 in 2024 to 191 at the end of 2025, while the total value of the fleet and orderbook rose from $2.03trn in December 2024 to $2.166trn at the end of 2025 and then to $2.381trn by May 2026.
Outlook
The outlook is more cautious. Petrofin expects bank lending to grow modestly in 2026 and 2027, supported by newbuilding finance, higher fleet values and limited scrapping. But it also warned that banks are becoming more careful on LTVs and increasingly focused on financially strong clients as vessel prices remain high relative to earnings.
The broader message is that shipping finance is no longer the narrow bank-dominated market it was before the financial crisis. Banks are growing again, but leasing, export credit, regional lenders, funds and private capital are all taking a larger role. Peterofin said the available financing mix is now more diversified, providing resilience but also requiring borrowers to navigate a more complex landscape.
For trade finance executives and treasury professionals, the growing bank appetite for shipping loans — coupled with improved margins and structural changes from geopolitical shifts — means that access to capital for vessel acquisition and operation is more favourable than in recent years. However, the increasing selectivity by banks and the continued evolution of sustainability-linked requirements demand careful planning of financing structures and counterparty relationships.
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