Nomura’s capital ratio edges lower as RWAs skip higher
Legal wrangle with US Federal Housing Finance Agency swells risk-weighted assets
Nomura’s common equity Tier 1 (CET1) capital ratio fell for the fifth consecutive quarter, slipping to a still lofty 16% from 18.1% a year ago as the bank shouldered more risk-weighted assets (RWAs).
RWAs rose 4.7%, or ¥709 billion ($6.4 billion), to ¥15.8 trillion in the three months to June 30, their highest level since March 2016. The bank’s CET1 capital grew just 1.3% to ¥2.53 trillion.
The hike in RWAs was partly linked to the bank’s failure to overturn a fine imposed by the US Federal
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