Swedbank takes $3.47bn RWA hit from credit model overhaul
Rejig of IRB models is expected to reduce the bank’s Pillar 2 requirement
Swedbank took a Skr35.8 billion ($3.47 billion) add-on to risk-weighted assets (RWAs) in the fourth quarter, to front-load the impact of regulator-mandated repairs to its internal rating-based (IRB) credit models.
The move increased the bank’s RWAs by around 5%, to Skr809.4 billion, and chipped roughly 90 basis points from its Common Equity Tier 1 (CET1) capital ratio.
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