Scotiabank’s capital ratio improves on fading market risks
VAR-based RWAs dropped 44% quarter on quarter
Market risk-weighted assets (RWAs) fell by almost a quarter at Scotiabank over the three months to end-October, reflecting a collapse in volatility after the Covid-induced spike earlier this year. The fall in RWAs helped bolster the firm’s Common Equity Tier 1 (CET1) capital ratio by 50 basis points, to 11.8%.
Overall market RWAs stood at C$7.3 billion ($5.6 billion) as of end-October, down 22% on three months prior and 24% on their Covid peak at end-April. Those RWAs calculated using the
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