trending Market Intelligence /marketintelligence/en/news-insights/trending/tkic7ycggq8pixmiqomayw2 content esgSubNav
In This List

Fewer large European banks see QOQ fall in leverage ratios in Q2

Video

S&P Capital IQ Pro | Powering Your Edge

Podcast

Street Talk Episode 81: Amid strong recovery, Banc of California hearing more M&A chatter

Video

S&P Capital IQ Pro | Unrivaled Sector Coverage

Blog

Banking Essentials Newsletter: September Edition


Fewer large European banks see QOQ fall in leverage ratios in Q2

Of 42 European banks with more than €100 billion in assets, 20 posted quarterly declines in leverage ratios in the second quarter, down from 27 in the first quarter, according to data from S&P Global Market Intelligence.

PAO Sberbank of Russia, which in May agreed to sell Turkish unit DenizBank AS to Emirates NBD Bank PJSC in a deal that would see the United Arab Emirates-based lender assume ownership of DenizBank's subordinated debt from its Russian parent, posted the steepest decline of 100 basis points on a quarterly basis to 10.90%. Sberbank also has the highest leverage ratio among the banks, followed by Russian peer VTB Bank PJSC with 8.50%.

While all banks in the sample meet the 3% leverage ratio required under Basel III, Bayerische Landesbank AöR's ratio was closest to the minimum at 3.80%, which is down 10 basis points from the previous quarter. In contrast, German peer Deutsche Bank AG's ratio rose 30 basis points on a quarterly basis to 4.00%.

KBC Group NV, meanwhile, recorded the highest increase in leverage ratio among the banks of 34 basis points to 6.02%.

The leverage ratio measures Tier 1 capital as a percentage of total leverage, including both on- and off-balance sheet exposures.

Click to see Chart Watch articles on banks' common equity Tier 1 ratios, liquidity coverage ratios and returns on risk-weighted assets.

SNL Image

SNL Image

See a section for capital adequacy for your bank. To do so, go to the company's profile on the website and then select "Capital Adequacy" under the Templated Financials section on the left-hand panel. Here is an example for KBC Group NV.

Enjoyed this analysis? Click here to set-up real-time alerts for data-driven articles on any region of interest.