CET1 capital ratio for UK banking sector grows

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CET1 capital ratio for UK banking sector grows

By Oliver Wade

28/03/2019

The common equity tier 1 (CET1) capital ratio for the UK’s banking sector increased by 0.1 per cent in the final quarter of 2018, rising to 15.5 per cent, the Bank of England (BoE) revealed.

However, despite the capital ratio increasing, the level of CET1 capital decreased by 2.2 per cent on the quarter, from £448bn to £439bn, when compared to Q3.

While tier 1 capital decreased between Q3 and Q4, tier 2 capital actually experiences a rise, growing from £92bn to £99bn, and was the only category to report positive growth between Q3 and Q4, increasing be 7.7 per cent.

There was a 2.7 per cent decrease in total risk-weighted assets in the final quarter of 2018, falling from £2,911bn to £2,834bn.

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