Barclays Posts Lowest Capital Ratio in Latest EU Stress Test

  • CET1 ratio for Barclays shrank to 6.37% in toughest scenario
  • Lloyds falls to 6.8% in adverse situation vs 9.9% for RBS
Photographer: Luke MacGregor/Bloomberg
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Barclays Plc saw its key measure of financial health sink to the lowest level among 48 banks in a European stress test, which gauged how well lenders could withstand heavy credit losses and other Brexit-related fallout.

Barclays’s fully loaded common equity Tier 1 ratio, a measure of its highest-quality capital, shrank to 6.37 percent in a so-called adverse scenario. Fellow London lender Lloyds Banking Group Plc didn’t fare much better in the test, with that gauge of financial health falling to 6.8 percent. That compared with a comparable ratio of 14.85 percent for Dutch bank ABN Amro Group NV.