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On June 29, BIS published its 84th Annual Report. Following we show a summary concerning the evolution of worldwide Bank’s capital ratios:

  • CET1 average increased from 8,5% to 9,5% over the last year, based on fully phased in B3 rules
  • Capital shortfall of banks lagging capital decreased significantly to 82,5 billion EURO
  • Bost of capital ratios is driven by increase in bank capital, mainly by retained Earnings
  • Dividend to earnings ratio decreased to 33%

2014-06_Capital gra6-1

 

Given their contribution to higher bank capital so far, stable profits will be key to the sector’s resilience in the near future. On average, profits rebounded further from the crisis lows, but recovery remained uneven across countries.