Banking sector regulatory capital - 2025 Q2

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 30 September 2025

The key points for 2025 Q2:

  • The Common Equity Tier 1 (CET1) capital ratio for the UK banking sector has slightly decreased by 0.1 percentage point to 15.4% in 2025 Q2.
  • The level of CET1 capital decreased by 0.9% on the quarter, from £462bn to £458bn.
  • The level of total risk-weighted assets decreased by 0.3% from £2,976bn to £2,967bn this quarter.

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

2024 Q2

2024 Q3

2024 Q4

2025 Q1

2025 Q2

One quarter

Four quarters

Ratios (per cent)

Change (percentage points)

Total capital

21.2

21.2

21.2

20.7

20.5

-0.2

-0.7

Tier1

18.3

18.4

18.3

18.0

17.8

-0.2

-0.5

CET1

15.9

16.0

15.9

15.5

15.4

-0.1

-0.5

Values (£ billions)

Change (per cent)

Total capital

624

609

623

616

607

-1.5

-2.7

of which: Tier1

539

528

539

535

528

-1.3

-2.0

of which: CET1

469

460

468

462

458

-0.9

-2.3

of which: Tier2

84

81

85

82

79

-3.7

-6.0

Risk-weighted assets

2,943

2,876

2,941

2,976

2,967

-0.3

0.8

Footnotes

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

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)

names

2024 Q2

2024 Q3

2024 Q4

2025 Q1

2025 Q2

One quarter

Four quarters

Values (£ billions)

Change (per cent)

Total risk-weighted assets

2,943

2,876

2,941

2,976

2,967

-0.3

0.8

Credit and counterparty risk

2,150

2,108

2,150

2,163

2,164

0.0

0.7

Market risk

384

366

363

381

379

-0.5

-1.3

Operational risk

334

328

351

354

346

-2.3

3.6

Credit Valuation Adjustment

63

61

63

59

61

3.4

-3.2

Other

12

13

14

18

17

-5.6

41.7

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

Comparison of capital ratios with other publications

Capital ratios for the UK banking sector are published by the Bank of England (BoE) and the International Monetary Fund (IMF). Chart 4 shows a comparison of published capital ratios for the UK and the details of their differences are explained below. Table C provides descriptions of the underlying datasets and links to their definitions.

Chart 4: Comparison of published capital ratios for the UK (a)

Footnotes

  • (a) Chart 4 is based on the most current publicly available metrics published by the institutions outlined in Table C at the time this statistical release was issued.

The effects of the differences in datasets and methodologies can be generalised as follows:

  • Firm coverage – the BoE and the IMF publish capital ratios that represent averages of the total UK banking sector. While they all use the same data, the IMF publications are updated with a lag. This means that the latest quarterly figures are not available at the time of this publication and may include minor differences because this release’s chart is not using the latest vintage at this point of publication. The Financial Policy Committee’s (FPC) indicatorsfootnote [1] cover major UK banksfootnote [2] only, rather than the total UK banking sector, and this generally has a downward effect on the ratio.
  • Use of transitional or endpoint capitalfootnote [3] – the use of endpoint capital will tend to have a slight downward effect on ratios, compared to those using transitional capital.
  • Timing – both timeliness and frequency vary across datasets. The banking sector regulatory capital statistical release is the timeliest.

Table C: Description of different published capital ratios for the UK

Publishing institution

Dataset

Firm coverage

Transitional or endpoint capital

Averaging method

Bank of England

Banking sector regulatory capital

Total UK banking sector

Transitional

Weighted mean

International Monetary Fund

Financial soundness indicators

Total UK banking sector

Transitional

Weighted mean

Bank of England

FPC indicators

Major UK Banks

End-point(a)

Weighted mean

Footnotes

  • (a) From 2018, Basel III CET 1 and Tier 1 capital ratios reflect IFRS 9 transitional arrangements.

Next release – 19 December 2025

Copyright guidance and the related UK Open Government Licence.

  1. In July 2023 the FPC added the CET1 ratio as one of its Core indicators, alongside the Tier 1 ratio.

  2. The group currently includes Barclays, HSBC, Lloyds Banking Group, Nationwide, NatWest, Santander UK, and Standard Chartered. Note: Virgin Money were included for the periods from 2020 Q4 to 2024 Q3.

  3. See explanatory notes for more detail.