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Key capital ratio improves YOY for 8 of 10 US 'advanced approaches' banks

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Key capital ratio improves YOY for 8 of 10 US 'advanced approaches' banks

Eight of 10 U.S. "advanced approaches" banks reported an improved common equity Tier 1 capital ratio as of March 31 compared to a year ago, while the ratio was up for seven banks from the linked quarter. The median CET1 capital ratio for the group was 11.92% as of March 31, up 11 basis points from the previous quarter and 34 basis points from a year ago.

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Citigroup Inc. was the only bank in the group with a year-over-year decline in its CET1 capital ratio, a 14-basis-point slide to 11.91% as of March 31. The ratio remained unchanged for Wells Fargo & Co. at 11.92%.

Bank of America Corp., Morgan Stanley and State Street Corp. reported quarter-over-quarter declines in their CET1 capital ratios of 1 basis point, 16 basis points and 24 basis points, respectively.

U.S. Bancorp remains the only bank in the group with a single-digit CET1 capital ratio, at 9.30%, despite an increase of 20 basis points from year-end 2018 and 31 basis points from a year ago. Nevertheless, the ratio is 2.30 percentage points over its required minimum of 7.00% in 2019.

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The CET1 capital ratio surplus fell for all banks in the group as a result of an increased effective minimum ratio in 2019. As of March 31, the median CET1 capital ratio surplus was 2.76 percentage points, down from 3.63 percentage points at the end of 2018.

JPMorgan Chase & Co. saw the highest increase in its effective minimum CET1 capital ratio, at 150 basis points, resulting in the lowest CET1 capital ratio surplus of 1.56 percentage points as of March 31, down from 3.00 percentage points at Dec. 31, 2018.

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