Banking sector regulatory capital - 2022 Q4

This quarterly statistical release shows levels of capital and risk-weighted assets for the UK banking sector. It includes breakdowns of the movements in different tiers of capital and risk exposure types, and overall capital ratios.
Published on 31 March 2023

Key points

  • The Common Equity Tier 1 (CET1) capital ratio for the UK banking sector increased by 0.4 percentage points on the quarter to 16.1%.
  • The level of CET1 capital decreased by 3.7% on the quarter, from £490bn to £472bn.
  • There was a 6.1% decrease in total risk-weighted assets on the quarter, from £3,132bn to £2,940bn.

Table A: Capital ratios and levels of capital and risk-weighted assets in the UK banking sector (a)

2021 Q4

2022 Q1

2022 Q2

2022 Q3

2022 Q4

One quarter

Four quarters

Ratios (per cent)

Change (percentage points)

Total capital

22.1

20.1

20.5

20.6

21.4

0.8

-0.7

Tier1

19.1

17.3

17.6

17.8

18.4

0.7

-0.7

CET1

16.8

15.3

15.5

15.7

16.1

0.4

-0.7

Values (£ billions)

Change (per cent)

Total capital

605

587

616

644

628

-2.5

3.8

of which: Tier1

524

506

531

557

542

-2.7

3.4

of which: CET1

460

447

468

490

472

-3.7

2.6

of which: Tier2

81

81

85

86

87

1.2

7.4

Risk-weighted assets

2,744

2,919

3,010

3,132

2,940

-6.1

7.1

Footnotes

  • (a) Figures throughout this document may not correspond exactly due to rounding.

Chart 1: Capital ratios for the UK banking sector

Lines represent the total capital ratio, Tier 1 and CET 1 ratio of the UK banking sector over the past 18 quarters. All of the three ratios have increased in 2022 Q4.

Chart 2: Contributions to quarterly change in total capital ratio (a) (b)

Bars represent contributions made by the quarterly percentage changes in the levels of risk-weighted assets (RWAs), tier 1 and tier 2 capital on the quarterly percentage change in total capital ratio over the past six quarters. The impact of a decrease in the Tier 1 level was offset by a relatively higher proportion of decrease in the RWAs level which resulted in an overall increase in the total capital ratio in 2022 Q4.

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 Q4

2022 Q1

2022 Q2

2022 Q3

2022 Q4

One quarter

Four quarters

Values (£ billions)

Change (per cent)

Total risk-weighted assets

2,744

2,919

3,010

3,132

2,940

-6.1

7.1

Credit and counterparty risk

1,973

2,117

2,182

2,273

2,138

-5.9

8.4

Market risk

393

404

418

430

384

-10.7

-2.3

Operational risk

286

290

304

316

312

-1.3

9.1

Credit Valuation Adjustment

67

73

79

87

81

-6.9

20.9

Other

24

36

27

26

25

-3.8

4.2

Footnotes

  • (a) The categories of risk-weighted assets used are as defined in the reporting templates in the annexes to the Implementing Technical Standards (ITS) on Supervisory Reporting (Regulation (EU) No 573/2013).

Chart 3: Changes in risk-weighted assets by risk type