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