Barclays Expects Rise in CET1 Ratio for End 2Q, Ahead of Views
July 13 2020 - 6:54AM
Dow Jones News
By Sabela Ojea
Barclays PLC said Monday that it expects to report an increased
common equity Tier 1 ratio--a key measure of balance-sheet
strength--for the end of the second quarter, ahead of estimates,
thanks to the positive effects of its regulatory changes.
The bank said that it currently expects to post a CET1 ratio of
around 14% at June 30, up from 13.1% as at March 31.
The London-listed lender said the regulatory changes include
amendments to the capital requirements regulation put in place in
June, as well as transitional relief relating to IFRS 9 impairments
and implementation of revised rules for the calculation of the
prudential valuation adjustment to capital.
"In addition, risk weighted assets as at June 30 are expected to
be lower than previously anticipated," Barclays said.
However, it said that there could be headwinds to the CET1 ratio
in the second half due to the procyclical effects on risk weighted
assets, as well as reduced transitional relief on IFRS 9
impairment.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
July 13, 2020 06:39 ET (10:39 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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