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.
Petrofin’s top 40 banks increased their shipping loan portfolios to $300.6bn at the end of 2025, up 6% from $283.6bn a year earlier. 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.
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.
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. Petrofin said 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.
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 also 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.
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. Petrofin said the available financing options for owners have multiplied over the past decade and are expected to continue expanding.
Petrofin argued ship finance is moving from a specialist niche towards a broader global asset class – but one still exposed to sanctions, geopolitics, energy shocks and high vessel values that need to be supported by real earnings.
