Dutch CET1 and Leverage ratios

The EBA transparency exercise results offer a wealth of data. They will keep researchers busy for some months to come.

The table below shows a couple of highlights, where all numbers are in %, and the data is sorted on 2015 Leverage ratio values:lrall

CET1 and Leverage Ratios are increasing. This is encouraging for sure. CET1 ratios are 14.81, up by 0.40 from 14.41. Leverage ratios are now well above reasonable levels: 5.72, up by 0.13, from 5.59.

However, there is some variation in Europe: Finland appears to do fine, France and the Netherlands not so.

Uh oh!

Specifically, the Netherlands (sporting the lowest leverage ratio of all countries) shows a loss of momentum. Ratios are down on average, that is, ignoring the two non-banks NWB and BNG.*

For example, ABN AMRO shows feeble ratios, which just before re-listing on the stock exchange does not look impressive.

lrnlMore of a worry are the ratios of State-owned SNS: its CET1 ratio is 14.09, down by 1.48 from 15.58, but at about 14-15%, these CET1 ratios are acceptable by all means.

The SNS leverage ratio, however, is more of a head-ache: it is 3.24, down from 5.05, a decrease of a whopping 36%!

In a time when ratios should be increasing, Dutch solvency ratios just look shoddy.

* BNG, NWB, are niche banks, serving mainly councils, provinces, etc.