BPCE’s capital ratio falls as it waits on Covid loan relief
Delay to state guarantee benefits took 32bp off of CET1 ratio
Groupe BPCE’s risk-weighted assets (RWAs) increased €8 billion ($9.4 billion) to €430 billion over the three months to end-June, after issuing a slew of loans eligible for state guarantees. These assets will benefit from capital relief, but a two-month time lag imposed by the government means the increased exposures added to its regulatory capital burden over Q2.
The French bank said the pile-up of state guaranteed loans took 32 basis points off its Common Equity Tier 1 (CET1) capital ratio
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