SEB purchase saps Danske Bank’s capital ratio
Despite hike in minimum required capital, Danske has ample buffer
Danske Bank’s acquisition of SEB Pension Danmark in December 2017 cost the bank 50 basis points of its common equity Tier 1 (CET1) capital ratio in the second quarter of this year, but left the ratio at a still hearty 15.9%.
The Danish lender’s CET1 capital dropped by DKK 3.8 billion ($588 million) to DKK 120 billion in the three months to June 30. The 15.9% capital ratio was down from 16.4% in March and the lowest since Q1 2017.
Besides the capital spent on the SEB Pension merger, Danske
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