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.
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