Thirteen of the 20 largest banks in the U.S. and Europe recorded year-over-year increases in their second-quarter returns on risk-weighted assets, with U.K. lender Barclays PLC posting the highest gain, according to data from S&P Global Market Intelligence.
Barclays' RoRWA — a measure of whether a bank is generating adequate rewards for the risks it has undertaken — rose on a yearly basis by 321 basis points to 1.84% at June-end from negative 1.37% a year ago. British peer Lloyds Banking Group PLC saw the second-highest increase of 74 basis points to 2.13%.
By contrast, Italy's Intesa Sanpaolo SpA saw the steepest decline in RoRWA of 462 basis points to 1.34%. U.K.-based Royal Bank of Scotland Group PLC came in second with a year-over-year decline of 113 basis points to 0.40%, the lowest RoRWA among the sample.
JPMorgan Chase & Co. posted the highest RoRWA at 2.15%.
U.S. banks Wells Fargo & Co., Bank of America Corp., Citigroup Inc. and JPMorgan had the highest risk-weighted asset density, with 67.90%, 63.00%, 61.54% and 59.59%, respectively.
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