Key points:
- The Common Equity Tier 1 (CET1) capital ratio for the UK banking sector decreased by 1.5 percentage points on the quarter to 15.3%.
- The level of CET1 capital decreased by 3% on the quarter, from £461bn to £447bn.
- There was a 6.2% increase in total risk-weighted assets on the quarter, from £2,749bn to £2,919bn.
Table A: Capital ratios and levels of capital and risk-weighted assets in the UK banking sector (a)
2021 Q1 | 2021 Q2 | 2021 Q3 | 2021 Q4 | 2022 Q1 |
| One quarter | Four quarters | |
---|---|---|---|---|---|---|---|---|
| Ratios (per cent) | Change (percentage points) | ||||||
Total capital | 21.3 | 21.6 | 21.8 | 22.1 | 20.1 | -1.9 | -1.2 | |
Tier1 | 18.4 | 18.6 | 18.8 | 19.1 | 17.3 | -1.8 | -1.0 | |
CET1 | 16.1 | 16.4 | 16.5 | 16.8 | 15.3 | -1.5 | -0.8 | |
| Values (£ billions) | Change (per cent) | ||||||
Total capital | 594 | 600 | 611 | 606 | 587 | -3.1 | -1.2 | |
of which: Tier1 | 512 | 517 | 527 | 525 | 506 | -3.6 | -1.2 | |
of which: CET1 | 448 | 454 | 463 | 461 | 447 | -3.0 | -0.2 | |
of which: Tier2 | 83 | 83 | 83 | 81 | 81 | 0.0 | -2.4 | |
Risk-weighted assets | 2,787 | 2,774 | 2,801 | 2,749 | 2,919 | 6.2 | 4.7 |
Chart 1: Capital ratios for the UK banking sector
Chart 2: Contributions to quarterly change in total capital ratio (a) (b)
Footnotes
- (a) See further details about these data for information on the calculation of these contributions.
- (b) Data for all charts has been sourced from the banking sector regulatory capital data tables.
Table B: Risk-weighted assets by risk type (£ billions) (a)
2021 Q1 | 2021 Q2 | 2021 Q3 | 2021 Q4 | 2022 Q1 |
| One quarter | Four quarters | |
---|---|---|---|---|---|---|---|---|
Values (£ billions) | Change (per cent) | |||||||
Total risk-weighted assets | 2,787 | 2,774 | 2,801 | 2,749 | 2,919 | 6.2 | 4.7 | |
Credit and counterparty risk | 2,018 | 2,012 | 2,032 | 1,973 | 2,115 | 7.2 | 4.8 | |
Market risk | 381 | 379 | 384 | 397 | 404 | 1.8 | 6.0 | |
Operational risk | 286 | 288 | 291 | 287 | 290 | 1.0 | 1.4 | |
Credit Valuation Adjustment | 75 | 69 | 72 | 67 | 73 | 9.0 | -2.7 | |
Other | 28 | 26 | 22 | 24 | 37 | 54.2 | 32.1 |
Comparison of published capital ratios for the UK and the EU
Capital ratios for the UK banking sector are published by a number of organisations; the Bank of England (BoE), the European Central Bank (ECB), the International Monetary Fund (IMF) and the European Banking Authority (EBA). These ratios are not identical due to differences in firm coverage, use of transitional or endpoint capital, method of averaging and data revisions as explained below. Chart 4 shows a comparison of published capital ratios for the UK in the panel on the left with EU average ratios published by the EBA in the panel on the right. Table C provides descriptions of the underlying datasets and provides links to their definitions.