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Swedbank's liquidity coverage ratio falls in Q1, as Nordea's improves

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Swedbank's liquidity coverage ratio falls in Q1, as Nordea's improves

Several major Nordic banks posted quarterly declines in their liquidity coverage ratios in the first quarter, according to data compiled by S&P Global Market Intelligence.

Swedbank AB (publ) posted the steepest quarter-over-quarter decline among banks in the sample, with its ratio falling 31.16 percentage points to 139.8% at March-end. The sample included European banks with more than €100 billion in assets as of March-end under S&P Global Market Intelligence coverage.

The liquidity coverage ratio measures banks' ability to withstand cash outflows, and is calculated by dividing a firm's stock of high-quality liquid assets by total net cash outflows over a certain period.

Fellow Swedish lender Skandinaviska Enskilda Banken AB posted a quarterly decline of 6.65 percentage points, while Denmark's Danske Bank A/S and Norway's DNB ASA saw decreases of 27.11 percentage points and 7.15 percentage points, respectively.

But another Sweden-based bank, Nordea Bank AB (publ), saw the biggest quarterly increase in the sample, with its ratio rising 26.49 percentage points to 173.8%. Nordea plans to move its headquarters to Finland later in 2018.

Switzerland-based Credit Suisse Group AG had the highest liquidity coverage ratio at the end of March — 208.4%. Russia's VTB Bank (PJSC) was at the bottom of the table with a ratio of 96.1%.

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

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SNL Image

See a section dedicated to capital adequacy for your bank. To do so, search the company in the top search box and go to the "Capital Adequacy" section, housed under the Templated Financials on the left-hand panel. Here is an example for Credit Suisse Group.

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