Bankinter: The European Central Bank highlights the solidity of banks and slightly increases capital requirements for 2025.
The ECB gives a positive assessment of the sector’s liquidity and solvency position with a CET1 capital ratio of ~15.8% and leverage of 5.8% (capital/total assets). By 2025 it is to increase capital requirements by 10 bps to 1.2% of RWAs (Risk Weighted Assets).
Our view: We have a positive assessment of the outcome of the ECB’s analysis because: (1) it reiterates the soundness of the sector which enjoys high capital ratios and low NPL ratios, (2) the increase in capital requirements for 2025 is immaterial (only 10 bps) and is explained by the change in the risk profile of some banks. We think it is closely related to the change in methodology applied by the ECB which is now more demanding in operational, technological and interest rate risks.
