Higher retained earnings boost Barclays, Lloyds and RBS capital
Barclays and RBS legally transferred share premium account balances to retained earnings over last two years
Top UK banks increased their Common Equity Tier 1 capital by more than £14 billion ($17.4 billion) over the past four years. Barclays, Lloyds and RBS added CET1 largely by holding back more profits; HSBC and Standard Chartered through the issue of capital instruments and build-up of share premium accounts.
Risk Quantum analysis shows the aggregate amount of retained earnings across the five banks stood at £151 billion in Q4 2015, making up 53% of the banks’ CET1 capital before regulatory
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