SocGen, UniCredit Join European Banks Slipping on Capital
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Three of the euro area’s largest lenders reported a drop in capital levels in the fourth quarter, failing to keep up with regulators’ demands for bigger cushions against potential losses as they face challenges in markets ranging from Russia to Brazil.
UniCredit SpA, Societe Generale SA and Commerzbank AG all posted a drop in common equity ratio, a key indicator of financial strength. Their shares plunged when earnings were released last week, signaling that investors have doubts about the strength of their balance sheets.