Norinchukin’s capital dented by crashing bond prices

The bank lost three percentage points of CET1 ratio in Q1 as contribution from AOCI halved

Plummeting mark-to-market valuations battered The Norinchukin Bank’s capital adequacy in the first quarter, highlighting the lender’s outsized exposure to market vagaries compared with its Japanese peers.

Common Equity Tier 1 (CET1) capital fell 14% to ¥7 trillion ($52.2 billion) in the period, after accumulated other comprehensive income (AOCI) – which primarily includes paper gains on fair-value securities – shrunk by almost half, from ¥1.7 trillion to ¥984 billion.

  !function(e,i,n,s){var

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here