Relief for credit losses buoys Barclays’ capital ratio
IFRS 9 transitional measures added 35bp to CET1 ratio
Barclays saw its capital position strengthen over the three months to end-June after benefiting from emergency regulatory interventions that eased the burden of the coronavirus crisis on the banking system.
The bank’s ratio of Common Equity Tier 1 (CET1) capital to risk-weighted assets (RWAs) hit 14.2% in Q2, up from 13.1% in Q1. Of the net 110 basis points increase, 45bp were directly attributable to relief measures.
New rules introduced in March allowing banks to negate the the capital
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