SNL Financial: Basel III Capital Ratios Slide in Q4'14 for Largest US Banks

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According to an exclusive article from SNL Financial, some of the largest U.S. banks reporting under the Basel III framework saw a quarter-over-quarter dip in capital ratios during the last quarter of 2014.

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Select banks' Basel III capital ratios under 'advanced approaches' capital framework

Some of the largest U.S. banks reporting under the Basel III framework saw capital ratios fall during the last quarter of 2014, after seeing improvement in the third quarter. The CET1 ratio reported by the 12 banks under the advanced approaches framework fell by a median of 19 basis points quarter-over-quarter; while Tier 1 capital ratio dropped by a median 18 basis points.

The three subsidiaries of Goldman Sachs Group Inc. and Morgan Stanley that report capital information under the advanced framework all saw a decline in capital ratios quarter over quarter. Morgan Stanley Pvt. Bank NA saw all three of its capital ratios drop by almost five percentage points during the fourth quarter, the highest drop among the group of 12. The bank's CET1 and Tier 1 capital ratios both fell by over 11 percentage points since the second quarter of 2014.

BNY Mellon NA was the only other bank to see capital ratios fall by greater than three percentage points during the fourth quarter. The company's CET1 and Tier 1 capital ratios dropped by 3.05 percentage points while its total risk-based capital dropped by 3.18 percentage points quarter over quarter.

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Christina Twomey
SNL Financial
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