Sixteen of the 20 largest Asia-Pacific banks reported quarter-over-quarter improvements in their Basel III leverage ratios in the third quarter, according to data from S&P Global Market Intelligence.
China Everbright Bank Co. Ltd., with a leverage ratio of 6.75%, saw the highest quarterly increase at 74 basis points. In contrast, Sumitomo Mitsui Financial Group Inc. reported the steepest decline in its ratio in the quarter, shedding 17 basis points.
China Construction Bank Corp. topped the list with the highest ratio of 8.27% after posting a 29-basis-point quarterly rise in the quarter. Japan's Norinchukin Bank and Industrial & Commercial Bank of China Ltd. followed closely, with ratios of 8.19% and 8.14%, respectively.
On the other hand, three Japanese lenders, Mizuho Financial Group Inc., Sumitomo Mitsui Trust Holdings Inc. and Sumitomo Mitsui Financial, reported the lowest leverage ratios among the pack, at 4.34%, 4.66% and 4.70%, respectively.
Leverage ratio measures Tier 1 capital as a percentage of total leverage, including both on- and off-balance-sheet exposures.