Banco Santander hit hard by IFRS 16
Average capital depletion across seven G-Sibs was 11bp
The switch to new accounting standard IFRS 16 lopped 19 basis points off Banco Santander’s core capital ratio in the first quarter, the most of any big bank surveyed by Risk Quantum.
The average drop to Common Equity Tier 1 (CET1) capital ratios across seven European global systemically important banks was 11bp.
After Santander, Deutsche Bank was the second-most affected G-Sib in the sample, suffering a 16bp decline to its capital ratio. BNP Paribas and Barclays followed suit with a 10bp drop
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