SA-CCR barely dents Commonwealth Bank’s capital ratio
Twelve basis point hit to CET1 capital ratio exceeds 7bp estimate
Implementation of the standardised approach to counterparty credit risk (SA-CCR) took just 12 basis points off the Commonwealth Bank of Australia’s core capital ratio in the second half of 2019.
The bank posted a ratio of Common Equity Tier 1 (CET1) to risk-weighted assets of 11.7% at end-December, up from 10.8% at end-June.
The RWA-inflating effect of SA-CCR was more than offset by divestments, risk-reducing measures and earnings. However, the bank disclosed that the SA-CCR hit was higher
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